Originally posted by: TankGuys
Originally posted by: CitizenDoug
So here is what I have: A business liscense and a resellers permit.
Here is what I don't understand: Does a company automatically accept me as a "reseller" if I buy something and try to resell it.
Example:
I want to sell Samsung LCD's monitors on my website.
If I order them through Newegg (my main supplier - it's cheaper and simpler than going through a place like Ingram Micro)...
FYI: This is a bad idea for a lot of reasons. You mentioned in another thread that you wanted to stick to certain manufacturers to build loyalty points with them to get discounts/incentives later. Well, the only way manufacturers track your purchases is if you buy direct from them, OR through authorized distribution companies. Thus, even if you by 10,000 of brand X items at Newegg, they don't care, since it's not part of the authorized chain. They only way you can start building clout for your company in the eyes of the big manufacturers is to start moving product through the recognized chains.
It's true you can buy parts cheaper at Newegg than through the distributors (Trust me, I know!). How do you think Newegg gets the prices they do though? Because they are a recognized channel supplier. If you called up manufacturer X and say, "I'd like a discount because I buy 1,000 of your products through Newegg each year and re-sell them" they will happily turn around and hook Newegg up with your discount, since they are moving them so well!
We went through a very similar thing when we started out. I used to stock parts by buying them from whatever retailer had them the cheapest. However, when the X2's came out and I was in desperate need, my AMD rep pretty much blew me off since according to his system, we had bought ONE processor (which was true; we'd only bought one from a distro, the rest from retailers since they are cheaper). After that fiasco, we now exclusively buy from distributors so that there is a record of all of our sales and volume. It's the only way to gain a foothold. So learn from our mistake!
And yes, your prices will be bad on a lot of things. We're in the same boat, the price we have to charge to break even at least is higher than what a lot of merchants charge. What you need to do is give your customers a reson to buy from you; make it clear that the price difference is worth it. Try to offer top notch service, maybe offer tech support, something to set yourself apart. You'll always lose sales from customers who just care about the bottom dollar; nothing wrong with that. Just know you'll never be able to compete with the low priced places unless you build some market share and show the manufacturers/distributors that you're worth thier time, and soon your base prices will fall.
Originally posted by: CitizenDoug
...and then sell them to someone - does that someone get the full Samsung 3 year warranty.
Or am I the only one with the warranty (the seller) because I did not authorize this with Samsung before hand...
If you buy through newegg, then re-sell it, then I'm not sure. If, however, you buy through a distributor/manufacturer direct, then any products you re-sell are 100% covered under the manufacturer warranties, since they only reach one "end user". This is another very good reason to buy from the distributors.
Originally posted by: CitizenDoug
...snip...I don't want to be selling people stuff with an invalid warranty.. That would be bad.
Yup, sure would. If I were you, I'd do things the "proper" way and be safe. You want to keep your customers safe and supported rather than saving them/you a few dollars here and there.
Originally posted by: CitizenDoug
Anyone know about this? I've asked before and not gotten a clear answer.. I'll keep my fingers crossed this time and hope it hits someone who has been in the business before.
You're welcome
🙂 If you have any other questions, shoot me a PM. I'd be happy to help you out, as it sounds like you're starting out pretty much how we did, and I know how badly you can use a leg-up in this industry!
