Retail versus Wholesaler - Conflict?
by LouannPat, Performer
- Created: April 3, 2009, 1:32 pm
My husband and I currently own a sole propriatorship online business and sales are really picking up. My current problem is that I'm selling products that my various local wholesalers carry - but they don't keep enough on the shelves to keep up with my growing demand. I presently carry around $6,000 of merchandise myself in a small warehouse, but can't possibly stock EVERYTHING I need. I neither have the room or the $$.
I cannot buy directly from the manufacturer because I hold a resale license - even though the State of Illinois tells me there is no difference when they issue retail or wholesale license - it's one and the same according to them.
Is it possible for my daughter and son-in-law (married and living in another state) to apply for a wholesalers license and therefore allowing THEm to buy from the manufacturer directly. Can they legally sell it to me (at a profit to them)? Would it be a problem because we are related?
I'm not sure if this presents a conflict - but it would solve my problem (getting a wholesaler to order WHAT I want and in the quantities I want) and let them start a wholesale business themselves that will grow in profits for them as I grow. They may even expand later themselves to sell wholesale online - just as I am selling retail online.
Do you see any difficulty with this? I want to be legal and above board - but am very frustrated at having to literally lose sales because I can't get my wholesalers to keep products that I'm rapidly growing & needing more and more of in stock. I want to buy directly from the manufacturer so they can drop ship quickly - but they won't let me because I sell to the public as a retailer.
I would appreciate any help and advice on this matter.
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