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Becoming a reseller for a brand

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LPPC

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Mar 6, 2016
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Hello people,

I want to become a reseller for an established brand in the baby niche and start with ordering 100 pieces of one of their products. This brand sells products worldwide and I want to become a reseller for my country and it already has a distributor/wholesaler in my country.

I want to get the best price possible. Should I contact the distributor in my country or the brand itself?

Any tips on how to approach them? I want to leave a good impression.

Thank you very much.
 

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MidwestLandlord

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Hello people,

I want to become a reseller for an established brand in the baby niche and start with ordering 100 pieces of one of their products. This brand sells products worldwide and I want to become a reseller for my country and it already has a distributor/wholesaler in my country.

I want to get the best price possible. Should I contact the distributor in my country or the brand itself?

Any tips on how to approach them? I want to leave a good impression.

Thank you very much.

Brand itself.

There's a difference between a wholesaler and a distributor.

A wholesaler would likely sell to you, but your mark ups look like this:

Brand that takes a mark up
Wholesaler that takes a mark up
You that takes a mark up (as a retailer)
End consumer

Why would you want to pay the wholesaler's margin?

Distributors though, typically work out agreements that give them and no one else exclusive rights for certain sales channels or areas.

You need to find out if the current distributor has exclusive rights for the country, any exclusive rights to territories within your country, or exclusive rights for certain retailers, categories of resellers, or online sales.
 

LPPC

Bronze Contributor
Mar 6, 2016
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294
137
29
Brand itself.

There's a difference between a wholesaler and a distributor.

A wholesaler would likely sell to you, but your mark ups look like this:

Brand that takes a mark up
Wholesaler that takes a mark up
You that takes a mark up (as a retailer)
End consumer

Why would you want to pay the wholesaler's margin?

Distributors though, typically work out agreements that give them and no one else exclusive rights for certain sales channels or areas.

You need to find out if the current distributor has exclusive rights for the country, any exclusive rights to territories within your country, or exclusive rights for certain retailers, categories of resellers, or online sales.

Wonderful, very clear. I'm going to call the brand to find out the answers to these questions.

Thank you!
 

WestCoast

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Ok, so, this is basically exactly what I do with my life.
I distribute products for companies around the world. We wholesale (sell to other companies who then sell to customers) and retail (sell direct to customers).

The answer to your question will totally depending on the product and the size of the industry.
Our industry is fairly small, where I text with the owners of the manufacturing companies. It's very small.
We're a bit of a family in some ways.

The manufacturers get requests *constantly* from people like you. People write them and say 'omg, I love your products, I want to distribute them for my region!'

If the manufacturer and distributor have a solid relationship, the manufacturer will pass that on to their distributor and let them handle it. As long as the distributor is performing well, that is how a solid relationship will work.

If the manufacture doesn't pass that lead on, and instead of starts asking the new inquiry.. 'so, what can you do that our existing distributor can't' ... then watch out. Long term, there might be very little loyalty.

Business is business, but, it's also a relationship. We trust our manufacturers, and they trust us. That's important (at least to me).

--
So, yes, you can go directly to the manufacturer/brand and inquire.
But, be aware they probably get a lot of inquires just like yours. And they are probably not going to be very impressed by you unless you have money, a solid plan, and a track record of sales success.

Manufacturers hear... ALL THE TIME.... 'guys, I could sell so many of your products!!'
And then nothing happens.

So, by all means, contact the brand. If they have integrity, they will put you in touch with the distributor.
They might be looking to expand sales areas, they might be disappointed in their distributor, whatever.... There are certainly opportunities available, but, a good manufacturer value a long term relationship they have with a distributor, and won't change horses mid stream.
 

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