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What is the best way to approach a company about getting their products at a wholesale price to sell

Discussion in 'General Marketing' started by wheelstb, Apr 11, 2014.

  1. #1
    I know that a lot of companies have a process that you have to go through to become a vendor. But I have done this before and a lot of companies are not responsive to having someone sell their products on eBay.

    There a company that fills a small niche. I think eBay would be perfect for their product.

    Just for further information, I do have a tax number, but I do not have a lot of startup money. I don't think I would be able to make a large initial order.

    Any advice would be greatly appreciated
     
    wheelstb, Apr 11, 2014 IP
  2. jrbiz

    jrbiz Acclaimed Member

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    #2
    Well, you could just approach the head of sales for the company and indicate that for a commission/percentage, you are confident that you could increase their sales significantly via online marketing. You can mention a number of auction/distribution sites as well as eBay as potential sales channels that you would exploit, depending upon how the initial sales testing goes. Tell them that you will start off small to test the waters and would like to get payment terms for these early few sales. That means that they would invoice you after shipping the products to either you or to your actual customer (called drop shipping).

    Note that some manufacturers do not like having their products sold on eBay because the typical lowball pricing is public and it would undercut the prices they normally get from their customers and distributors. One way around that is for them to "white label" these products and put them under your company's name perhaps with a smaller feature set where you could go after the low end of the market.

    Be honest with them and make sure to point out that they have little risk as you are only going to get money from them if you make sales. Otherwise, no monies will change hands.
     
    jrbiz, Apr 11, 2014 IP
  3. agmccall

    agmccall Active Member

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    #3
    Pick up the phone and call them

    al
     
    agmccall, Apr 15, 2014 IP
  4. MarielaSchmidt

    MarielaSchmidt Member

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    #4
    Make an effective Portfolio with a record and marketing strategy
     
    MarielaSchmidt, Apr 15, 2014 IP
  5. wheelstb

    wheelstb Active Member

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    #5
    Thanks, sometimes I guess I overcomplicate things. I suppose it really could be as simple as a phone call.
     
    wheelstb, Apr 16, 2014 IP
  6. phptechie

    phptechie Well-Known Member

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    #6
    @wheelstb
    If you have reference (who might be an employee or distributor or supplier ) , who can vouch on your credibility , then it might help you win the deal.
    Generally go with middle management people to initiate the process & explain them that you can do volumes within a stipulated period , if they are convinced ,they might provide what you need.

    Here is the list of things that normally I do , if I were in your situation
    1. Understand the product & its market potential
    2. How well the brand has established & does it have brand value for the product ?
    3. Current channel / distributors that the company uses to sell its products?
    (If they use traditional channels & not online marketing , then this might be your ground , where you can use your expertise , if you have strong portfolio in online marketing)
    4. Get an appointment from the key deciding authority
    5. Prepare a professional presentation on your proposed business opportunity that you expect from the company
    6. Explain them your financial position etc,..
    7. Ask if they are interested with your proposal , if not ask them what would suit them

    (But last but not least , you need minimum funds to do any business , so you can't start with ZERO investment , especially in case of tangible products)

    Hope this helps :)
     
    phptechie, Apr 17, 2014 IP
    jrbiz likes this.
  7. kikibear

    kikibear Peon

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    #7
    Good suggestions! Tell them your plan and persuade them.
     
    kikibear, Apr 17, 2014 IP