Working with a well known company - Not a franchise

[Justin]

For the last 2 or 3 years I've debated working with a company. Simply put, it involves buying their products for decoration and resale. I absolutely love the products and I'm confident of local sales which is where I'd be targeting. Mark up is good and potential for ongoing sales excellent.

So why am I hesitating? Investment wouldn't be massive but significant enough to justify care. Products don't have to be mass purchased. My problem, the company selling these products sell them on their own website under a trade brand at the same price I'd have to market for. This means that any search online for the products would bring up their established website and Facebook etc.

I've spoken to them about this and they don't seem to think it's an issue so not sure if I'm over-thinking this. I've asked about exclusivity in my area which let's be honest is very small! and they won't entertain it. If someone else wanted to sell the products in my area they could, and likely will once they see them. So, I have no real protection.

Apologies, I'd sooner not discuss the supplier by name due to above but would like some advice. It's not something I could do without their products/backup. Normally I'd walk away but I l;ike the products so much I keep re-visiting the idea!

[froggy]

If you fancy the line and can see a decent margin, do it. If you get a good 12 months out of it and earn I would have thought that was worthwhile.

If competition turns up it turns up, whats new. Or try and negotiate local exclusivity on hitting certain sales targets. You must have seen enough lines by now to know its got a above average chance.

Good luck

[Justin]

Thanks for your advice, much appreciated. I'm in two minds, personally if I saw someone locally selling the same products I'd think it wasn't worth trying to compete so I would hope others would see it this way, also, if I spent that first 12 months establishing that would give me a head start. I'm just unsure how long term this would be and I don't want a flash in the pan addition to the business. I'd be happier if it was a franchise, I think I'll push for exclusivity.

[Earl Smith]

Hi Justin
I do this, or something like it with my embroidery. I also dont have a guarantee that the firm will keep coming back to me but Ive now worked with them for 10 years and they still keep coming. The price I give is cheaper than if I sell it myself ( wholesale pricing) but we have never had problems with prices clashing. They sell to their area and I to mine. Their area is far greater than mine so I benefit as I dont have external salespeople. They also respect my area and dont tread on my toes so to speak.
Its worth it in my opinion.

[GoonerGary]

How famous are this other company? Locals might think that you are ripping them off and charging a Shetland tax.

[Justin]

Well known in the industry but none up here will know them. Prices are set so I'd be selling at same price as the supplier, locals would just save on postage.

[GoonerGary]

Go for it.

[Tubstar]

I don't really have much to add to whats already been said other than pointing out that you say you keep revisiting the idea. The only way to stop that is to give it a try, if you decide now not to do it. You'll be in the same boat next month, and the month after until you decide to try it. I understand not wanting to start something "flash in the pan", but without a crystal ball you wont know until you try. But you will always be wondering if its worth doing. Maybe if sales build up over some months you could get them to look at more exclusivity then. I can understand them being hesitant in case you don't do the market place justice, I cant imagine that from what I have read on here but they don't know that. If you end up buying lots of their products, they are not going to want to loose you.

[webtrekker]

Not knowing the full details, and not having been in this position myself, the only advice I can offer is this, from my old Grandad: 'You have to speculate to accumulate.'

[pisquee]

Trying to work out what you're talking about Justin .. are you effectively going to buy in a "blank" and put your design on it, and the company you are buying the blank products from put their designs on them too and sell direct to the public?