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how do i keep my customer from reselling my product

 
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ovi

posts: 2

Jan 29, 2007 8:23 PM ET    Quote  Report Abuse
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I am working on becoming a distributor in my state for a product coming in from another country ( Australia). this is a fairly new product for the trade and no one sells this product in my state. How do I keep my very own customers  from turning on me and reselling this product.     The manufacturer wants to write up a distribution agreement that benefits us both .....any ideas of how else to keep customers from reselling even from the product I sold them ......help
CrossCountry

posts: 133

Jan 29, 2007 9:12 PM ET    Quote  Report Abuse
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That`s a good question. 

I`m not a marketing authority by any stretch of the imagination but my first thought would be to mark it up high enough to keep your own customers from reselling it at a decent enough profit to benefit them, but keep your price low enough to enable you to distribute it. 

They could, however, eventually gain access to your source, undercut you, and sell it themselves.

I`d be interested in seeing some of the responses to your post myself.



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nhgnikole

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Jan 29, 2007 9:45 PM ET    Quote  Report Abuse
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I`m not even sure that`s possible.
beautifulpetunia

posts: 327

Jan 29, 2007 9:50 PM ET    Quote  Report Abuse
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Hello there!

 

Welcome to Startup Nation! Glad to have you with us!

Although I am no expert, I think the key to this problem may lie in the system you create for your resellers. Incentives, security, customer service. With a strong support system for your resllers in place, you make it easier for them to settle into the comfort of your "network" and all of its "benefits" rather than facing the cold, lonely road of going it alone.

If too much of the burden for getting this off the ground is placed on their shoulders, they could be left to think "I am doing this all myself anyway...."

In the same way, it may be wise to create a strong presence for you name, and the trust that goes with it, but remember that resellers are really just your very first customers!

For more specific thoughts, what kind of business/products are you working with?

Hope this is helpful!

Best of luck in your venture and  please keep us posted on your success!

 

Steve

posts: 921

Jan 30, 2007 8:36 AM ET    Quote  Report Abuse
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I am working on becoming a distributor in my state for a product coming in from another country ( Australia). this is a fairly new product for the trade and no one sells this product in my state. How do I keep my very own customers  from turning on me and reselling this product.     The manufacturer wants to write up a distribution agreement that benefits us both .....any ideas of how else to keep customers from reselling even from the product I sold them ......help
Assuming you`re making the profit you desire on each unit, why not just become an importer / wholesaler? Sounds like that is already what is happening. Quit fighting it and run with it.


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patentandtrademark

posts: 1332

Jan 30, 2007 12:23 PM ET    Quote  Report Abuse
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There can also be antitrust ramifications from forming an agreement which restrains trade.  I would have somebody take a hard look at any agreement.

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James Lindon, Ph.D. Patent Attorney
Lindon & Lindon, LLC
Cleveland, Ohio
Patents, Trademarks, Copyrights, Pharmacy Law, Litigation
[this is not legal advice - provided for discussion only]
Intellectual Property for the Individual and Small Business: Identify, Protect, Enforce, Defend.
"Fools rush in where angels fear to tread."
http://www.LindonLaw.com
rossb

posts: 924

Jan 30, 2007 2:29 PM ET    Quote  Report Abuse
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I agree with Steve, if you`re making the profit you want, what`s the problem with someone else making a profit too?  No reason to be greedy after all, let it be a win-win...

R-


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Quaerite Primum Regnum

"There's a fine line between genius and insanity. I have erased this line."
~ Oscar Levant ~

Twitter: @rossb
ovi

posts: 2

Jan 30, 2007 4:50 PM ET    Quote  Report Abuse
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Thank You for the reply !      I do understand that I will have no alternative than to become the US wholeseller, though this product is so trade specific and the fact it must be used precisely as indicated for the construction industry and applied as directed ........I fear that if the product is not used correctly we might get into the ....it really does`nt work well at all deal ........that is really my fear ....as far as myself letting other people do the leg work for me I`m all for it........gee what could be better     J.Paul Getty once said quote " I`d rather have 1% of the effort from each of 100 men than to expect 100 % of one man".........or something like that........thanks once again for your help ....ovi

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