How to approach retailer to arrange onselling agreement


In our local area there are certain products that are sold at a much higher premium by large big brand retail stores and they move a lot of this product.

There are smaller established stores who also provide identical product but at a cost of several hundred dollars cheaper.

These smaller stores have far less reach due to lack of marketing, so are more like local stores. But they have done the leg work in terms of securing the product from overseas and establishing themselves in a certain location for the long term.

I would like to approach these smaller stores to see if they would agree to allow me to onsell their product. So I would essentially be a middle man. I would pay them close to what they are getting now and would aim to sell the product slightly higher, but still less than the larger retail stores.

What I don't know is how I should go about with the initial contact. Should I email, call, walk in off the street with a suit and some figures?

As I see it they don't have much to lose if I am helping them to move stock.

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asked Oct 20 '10 at 09:07
1,257 points
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2 Answers


If you are selling their products on the web:
1. Dont pay attention to local retail market so much as your competitor will be other web sites selling the same product. Base your pricing on that. High end retailers charge a premium because they offer showrooms, and a buying enviorment that online cannot match.

  1. Contact the product manufacturers. Look into drop shipping, although it is not always the best option if you have capital to buy inventory. Some manufactuers will point you towards distributors and wholesellers of their product.
Even if you are retail, go directly to the source. Doesnt make sense to me in being a 2nd middle man. (the retailer is the middle man between producer and consumer). You can just be another retailer.
answered Oct 20 '10 at 19:59
2,079 points


If you can arrange a drop-shipping arrangement with the manufacturer or distributor, that is preferable to buying and reselling from a local retailer. You will have a much healthier profit margin and will not have the risk and cost of storing inventory.

answered Oct 22 '10 at 10:36
19 points

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