I am interested to know if you have come across this problem I am about to mention and how did you get around it?
It has come to me attention that certain distributors and wholesalers are without a doubt charging prices that are far higher than the actual manufacturers suggested selling price!
Recently I have been in touch directly with manufacturers and received details and prices on their goods and then compared these against the distributors/wholesale prices only to find they are overcharging!!
As an example, one manufacturer shows a range of products and their manufacturers suggested retail price (MSRP) is £209.99 per item yet the distributor shows the MSRP at £261!!
That's a HUUUGE profit for them and considering they buy bulk and get stock even cheaper, this makes it extremely difficult to list and sell these products, let alone make a profit because if I sold this at the distributors price compared with the actual manufacturers price, I would be at a loss because the distributors trade price plus VAT is more then the MSRP!
That's clearly ripping retailers off and makes it more difficult for a new business to grow and to introduce these new products and when you cannot buy direct from manufacturers due to huge import costs or the fact they will only allow you to purchase direct if you either buy larger quantities than you actually need or spend a certain amount per month or year.
These distributors/wholesalers are also global leaders and recommened by the manufacturers but do the manufacturers realize how much these distributors/wholesaler are charging retailers?
This is not good for business to business relationships so what would you do about this and what advice do you have?
Steve Jarvis | Proprietor/ Owner Of Figureland www.figureland.co.uk Tweet & Follow: @FigurelandUK Call During Opening Hours Mon-Fri 9am - 5.30pm Tel: 01895 349595 Email: email@example.com