Should this cause any problems?

[Whole Paradigm]

Hello All,

Straight to it. I have a product that I sell that I get from a manufacturer for $180.00. As per their MAP I can advertise no lower than $250. I sell the product for $360 giving me $180 dollars profit.

I would like to get others to sell the product as well so that I can ultimately sell more. So I was thinking about putting a Distributor tab up on my website, and allow others to sell as well. I would then raise their price to $240 instead of my $180, which would still give me $60 dollars per sale.

Does anyone see any problems in doing this? Especially, if my manufacturer found out? I'm not ADVERTISING the price any lower than the $250 to the public, I would just be giving a lower price to a verified distributor.


Thank you everyone,


Cory

 

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[Hambone]

What happens when your distributers sell below $360?

 

[Whole Paradigm]

I don't care so much honestly. If I could have have enough distributors selling the product I'd stop selling myself and focus the money on the fastlane business. Even if it means I'm getting $60-$70 per sale. If I have 20 distributors and say they can average 5 sales a month, I make $6000-$7000 bucks and I don't have to do much except a few hours here and there and focus my time, energy, and money on the real business. It's a win win for me either scenario.

 

[andviv]

Well, it sounds to me like you already made up your mind...

If I were the manufacturer, I'd cancel your contract directly and try contact the others and offer to them what I was offering you.

I am sure somewhere in the contract they have mentioned something about this and you reselling... I'd very surprised if that is not there already, some clause with that language in there.

 

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[Whole Paradigm]

Andiv,

No, this is why I am asking, because I haven't made up my mind. Thanks for your input... As far as the clause, no, they have not put it in there. In fact, it was very lacking in most aspects.

 

[andviv]

wow, shocking...

Then, if there are no rules against it, I'd say go for it.

You may want to call them and try to bring the topic up and see what they say... who knows, if they have not added it to the agreement, then maybe they simply don't care.

 

[Whole Paradigm]

Andiv,

Thank you, I will call today. Any other forseen issues that anyone can point out?



Cory

 

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