Help!! Problems linking a manufacturer and distributor

[andrewt]

Hi all,
I've identified a viable muse but am in a tricky situation getting it started.
A month ago I noticed a gagdet that could be sold on the Australian market that is manufactured in France. I emailed the French gadget company and asked if I could sole distribute the product in Australia. There is no distributor in Australia just yet and then they asked for company financials and a webiste. At the moment I have a URL but no website, and next to no capital. This is problem #1.
After thinking about my target market, I identified 4 different chains of stores that would probably be interested in selling the product. Each different chain has about 20 stores around Australia. IF each store sold 2 gagdets a week thats 160 items. If I made $10 off each gagdet, thats $1600 a week.
In terms of maths I suspect the gagdet would cost about $50 to buy, and the retail stores could sell it for upwards of $100. I am only looking for a small cut ~~10%, but am unsure as to how I should position myself in the business equation. If the muse got going I would have the manufacturer ship directly to the retail stores warehouse.
I'm reluctant to call the retail stores just yet since as soon as I tell them what the product is (a brief description and a google seach and they'll find the manufacturer) they could go and buy it direct from the manufacturer, cutting me out. I'm reluctant to tell the manufacturer the retail stores and the volumes, since they might try and sell the product directly. This is problem #2.
I don't have the capital to buy an initial shipment and get the product on the shelves. As I see it the value I could add is making press releases promoting the product, and the value of linking the manufacturer with local end users. Thats where I get my 10%.
Problem #3 I'm having difficulty finding information on how to do this, does anyone know terminology of this type of thing so I can search for more information?

Any help would be appreciated.

And if you're a venture capitalist, any help would be extra extra appreciated.



Andrew

[Choices7727]

Just read your post and wanted to see how your progress was coming along?

[islandone]

Hi all,

I'm reluctant to call the retail stores just yet since as soon as I tell them what the product is (a brief description and a google seach and they'll find the manufacturer) they could go and buy it direct from the manufacturer, cutting me out. I'm reluctant to tell the manufacturer the retail stores and the volumes, since they might try and sell the product directly. This is problem #2.

I am looking at your "reluctance" and wondering if this step is uncomfortable for you so you are rationalizing reasons not to do it. Could this be self-sabotage? The way I see it is you don't have to volunteer any information you don't want to. I suggest you make these calls to get more info on how these relationships are structured and don't volunteer any info you don't want to. If speaking generally doesn't get the info you want, plug in a dummy product just to get more clarity on how the distribution could work. Ask what arrangements are standard for these companies. Make the call.

[TimW]

Don't expect much of a reply. The OP has 1 post to his credit, this thread, and it was made in 2.5 months ago, in May.