Setting up an account with a distributor

[paulnic]

Hi

I am in the early stages of starting a small ebay shop and i have been in contact with a few suppliers. The problem is that i have to set up a credit\trading account with them before i can see any prices. Is this normal practice? Also on one of the application forms it asks for references from 2 other distributors that i currently work with - problem is i am just starting out so dont have these! also by opening an account this wouldnt normally tie me into a specific spending aggreement would it? i know these questions are very company specific but just any general advice about opening accounts with distributors would be really helpfull

thanks a lot in advance

[KateCB]

Talk to your main 3 suppliers and explain that you are just startingout- they may be prepared to offer you a pro-forma (pay with order) for 6 monts to make sure you are credit worthy, and then give you a credit account - if you can get 3 to do this, then you ten have your references for the future.

Setting up a trade account ususally means that you have a limit per month/year - they will allow you to put on credit say £500 per calendar month- if it exceeds that they will want the excess paying. Each month you pay the invoices or ther goods you have had - it may be that you only need £300 with one suppier, £200 with another and the full £500 with the third. You don't HAVE to buy your credit limit, this is purely what they are prepared to 'risk'.

We do not allow our clients to see trade prices until they hae registered as a trade customer along with supportig documents - so it is usual practice to restrict trade prices until it can be proved that you ARE trade.

[ColinR]

It is normal practice, you have to realise that distributors get dozens perhaps hundreds of applications a week and they have to be able to filter out those who just want a quick cheap sale never to come back again. You should call the company or companies concerned and discuss your ideas with the trade manager or sales manager. Tell them that you are prepared to order in whatever there stated minimum quantities are per item initially and offer to pay by debit card or bank transfer as before they ship the order. That way there is no risk to the company concerned, you get your items, you build up trust with them over time and develop your business at the same time.