Forums: Discussions for entrepreneurs and small business.

Is there a precedent for offering product to potential independent dealers to place in their stores as something of a consignment/special offering?

Our product moves well enough when on display at our current clients, yet as a new concept we are having difficulty bringing new customers on line. In this stale economic situation they don't want to take a chance on products without a solid track-record.

We provide a small quantity of product, the dealer displays the product and we invoice for re-orders. The initial product becomes sort of a "running" balance until the dealer wishes to opt out then we accept the returns or bill for what is used. We're discussing levels of less than 5$-$10 per item wholesale.

Just curious if this is something businesses have done before with any success.