A Newbie Question

[amflores]

I am looking to start my own online business. I've been lurking for a while and have learned a great deal from all of you.

I would like to know what would be the best way to pursue a distributor or Wholesaler once I find the product/s I want to sell? Obviously I want to be competitive. Of course, the distributor has to make money somewhere. What type of percentage or cut do they usually take? I know some distributors may drop ship, and most will do at least a net 30. Do they check your credit. I'm trying to figure out what would be the protocol to get started. I don't want to look so dumb-dumb when I approach a distributor.

I appreciate your help!

[JFrenzel]

Hello there,


These are few suggestions I have


* They may or may not check your credit, but all in all, iF you show you are trust worthy they will be willing to do Net....etc terms.

* The cut they cut depends on the cost and the item, furthermore this too is negotiable

* Some dist dont drop ship, but there are fulfillment companies that focus on that.



Best of lUck

Jose

[kamakiri]

I give this advice over and over again. Finding a distributor is the least of your worries. Getting a product that will sell is where you need to focus your efforts. Getting a trial web site up, learning how to market it, gaining a customer base. These are the things you need to concentrate on.

I guarantee you that you will have manufacturers eating out of your hand if you can show them you sell 3000 units (of anything) a month. Even if you can only sell 500 a month and have decent credit, you will be fine.

The most difficult thing is not finding a manufacturer. THEY ARE ALL OVER! Did you think that injection moulders, printing companies, or envelope manufacturers were somehow making enough money that they turn away customers these days? They turn away the wheel kickers who come in asking for a production run of 200 items though. All that tells them is that you can't sell your product.

Getting a web site up and running costs almost nothing. If it turns out you can sell your stuff, then the sky is the limit, but developing a product that sells is the key here.

[amflores]

makes sense. I have a couple of ideas. I just didn't understand the protocol.
I agree, it is important to come up with an idea that will sell. I guess I wouldn't know that till I try.

Thank you :)

[Krayzi]

makes sense. I have a couple of ideas. I just didn't understand the protocol.
I agree, it is important to come up with an idea that will sell.

Protocol? There is none.


Identify market. (No, really.)
Find products for market. ("ideas!")
Test market.
Get help fulfilling orders for market.
I guess I wouldn't know that till I try.

Well, bluntly, no. See above, and read 4HWW again. And get some advice from Star Wars:

Do, or do not. There is no try.

Peace you will find.

Regarding "protocol" with distributors: talk to them when you have a market, and they are likely to give your credit app a cursory glance, at best.

[forgiven]

What type of percentage or cut do they usually take?

hey, don't worry about negotiations immediately, wait to cross that bridge.

Also don't think "cost plus"... all you care about is the value your client is willing to pay for it... it doesn't matter what their cut is at first, you probably don't need to spend time negotiating pennies if you are able to mark it up 8-10 times right?

don't get into negotiations until you have some reason for them to listen (like for example you collect 50 emails over a 2 week trial period on your new site and now when you go to the table with your bargaining chips you can negotiate an initial order of 50 and get a fair volume discount rate)

Lastly have some 'final requests' when you do cross the negotiation table... once you have gotten pricing settled with acceptable terms, approach them with a final request... maybe 1%10NET30 or whatever you can swing.