The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

The Entrepreneur's Forum for learning how to build wealth and financial freedom the Fastlane way!

Say "NO" to mediocre living rife with jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence. Join our forum with more than 70,000 entrepreneurs who are making it happen.
Join for FREE Today
Get the books
Remove ads? Join Fastlane INSIDERS
(Registration removes this block)

Getting Exclusive Distribution Rights

amp0193

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 27, 2013
3,251
14,651
United States
I recently got exclusive U.S. distribution rights for the products of a European brand. Here's how I did it:

Step 1) Find a gap in the market. In my case, consumers were paying tons of shipping to order these from Europe. There was no U.S. source to buy from <--- Opportunity!

Step 2) Open a wholesale account with the company and make a minimum order.

Step 3) Market and sell the products as fast as you can.

Step 4) Call the company when you're almost sold out. Be enthusiastic and tell them your detailed plan to sell boatloads more, then ask for exclusive U.S. distribution, because "I don't want to spend the time building a distribution network, if a competitor can come in and undercut my business".

Step 5) Actually sell boatloads, so they extend the contract when it's up for renewal.


I'm working on step 5 now.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.
Last edited:

amp0193

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 27, 2013
3,251
14,651
United States
So here's my 3-pronged strategy to sell lots of these things and keep the contract:

1. This product is a hot-selling accessory to the high-ticket products in my main business. 20% of my customers buy one. These accessories actually help sell more of the high-ticket products because they extend the accessibility of the product to a new customer base.

2. Make a list of every dealer in the country (maybe 200?) who might want them. Then sell to them! These products are a no-brainer. If you're a dealer, you'd have to be stupid not to buy them because of how much they help the high-ticket items sell.

3. Ecommerce direct to customer -
  • Amazon search only returns 3 search results... my listings. Amazon listing is already #2 spot in google search for main keywords.
  • eccomerce site (the brand is actually developing this now. No time or expense on my part... however, I have less control). Until live, I'm selling on my own website running google shopping and adwords.
  • Creating US social media accounts for the brand and growing them to reach end users.

Sneaky side benefit: Those 200 dealers are the same that might want to stock my high-ticket items in the future (a tougher sell), and now my foot is in the door with them. Also, I get to post lots of pics of my high-ticket items on the company social media and Amazon to raise awareness of my main business!

Lots of synergy here with this set up, and I'm digging it.
 
Last edited:

amp0193

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 27, 2013
3,251
14,651
United States
I know @MidwestLandlord has negotiated territory agreements with different brands as he's shared in his progress thread. Do you have any words of wisdom to share about how you got those contracts?


The fun thing about selling other people's products, is that you skip the hard stuff (R&D, product development, manufacturing) and get right to the fun stuff: selling!


Anyone else do any wholesaling of other companies' products?
 

amp0193

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 27, 2013
3,251
14,651
United States
I'm currently not, but plan on in the future, so thanks for the thread and info :).

No prob!

I wouldn't recommend making wholesaling of others' products the bread and butter of your business, as you lack a lot of control, but it can be a way to get a lot of skus up and running quickly, while you slowly replace them with your own branded products.

My site right now is a mix of branded products and several different wholesaled brands.
 

Private Witt

Gold Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
Feb 20, 2018
706
1,290
Oklahoma
No prob!

I wouldn't recommend making wholesaling of others' products the bread and butter of your business, as you lack a lot of control, but it can be a way to get a lot of skus up and running quickly, while you slowly replace them with your own branded products.

My site right now is a mix of branded products and several different wholesaled brands.

Thanks, the deeper I get with my current project, the more I'm learning the lack of control is a massive factor in the majority of my issues.
 

AgainstAllOdds

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Speedway Pass
Dec 26, 2014
2,274
14,561
30
Chicago, IL
Great thread.

A note I want to make:

If you can't get U.S. exclusives, go for metropolitan rights. Chicago GDP = Country of Switzerland GDP. A city might seem small but can still be giant.

This won't work if you're distributing small products that are shipped across America.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

B. Cole

In thine hand is power and might.
FASTLANE INSIDER
Read Fastlane!
Read Unscripted!
Speedway Pass
Mar 5, 2017
595
1,936
41
East Coast
Haha, best barrier to entry thread yet. What’s the IP status of the product in the US, anything proprietary to be had?
 

amp0193

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 27, 2013
3,251
14,651
United States
Haha, best barrier to entry thread yet. What’s the IP status of the product in the US, anything proprietary to be had?

Proprietary is a strong word. IP doesn't really come into play. Long-term plan is for me to make my own brand of competing product.

The barrier on copying this product is in meeting the lots and lots of very important safety standards. The kind you want to make triply sure you have on lockdown before you start selling.

Hence, why I opted to source someone else's in the meantime.

And this manufacturer is the only company in the world making this product. I don't really have to worry about competitors for now.

Very niche product. Solves a very specific need.
 

LittleJohn

Bronze Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
Aug 30, 2018
99
101
Northeast USA
I know @MidwestLandlord has negotiated territory agreements with different brands as he's shared in his progress thread. Do you have any words of wisdom to share about how you got those contracts?


The fun thing about selling other people's products, is that you skip the hard stuff (R&D, product development, manufacturing) and get right to the fun stuff: selling!


Anyone else do any wholesaling of other companies' products?
I guess at this point you just look at margins and be sure to factor in advertising costs?
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Must Read Books...

Explore books recommended by MJ DeMarco and other members of the Fastlane entrepreneurial community.
Fastlane Bookstore
Top