Product almost in retailers...but what’s stopping them from sourcing it themselves?

Discussion in 'General Business Forum' started by JollyRancher, Dec 6, 2018.

  1. JollyRancher

    JollyRancher UKBF Newcomer Free Member

    2 0
    Hi All,

    I’ve sourced an interesting product from China. Very innovative and no high street retailers currently stock it. I’ve recently had discussions with a large retailer in the UK with the view of supplying them with this item and they are very keen on taking it on for a trial period.

    My only issue is that although we’ve had positive discussions, what’s actually stopping the retailers from sourcing this item themselves at a much lower price and selling it i.e. cutting out the middle man. If the trial goes successfully, I feel that they could just go direct to the manufacturer and get this made for themselves.

    The product has no patent, no protection and is in the public domain. The only real protection I could offer is the design/branding.

    Is there any sort of legal/contractual wording I could look at to prevent the retailer from sourcing this product themselves?

    I look forward to your advice.

    With kind regards,
    Mark
     
    Posted: Dec 6, 2018 By: JollyRancher Member since: Dec 6, 2018
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    13,078 1,406
    Sign exclusivity with your supplier / factory? For a price of course.
     
    Posted: Dec 6, 2018 By: Mr D Member since: Feb 12, 2017
    #2
  3. JollyRancher

    JollyRancher UKBF Newcomer Free Member

    2 0
    Not possible, mainly because there are a couple of factories/suppliers offering the same product
     
    Posted: Dec 6, 2018 By: JollyRancher Member since: Dec 6, 2018
    #3
  4. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,708 366
    What are you providing to the supplier / buyer that justifies this premium?

    If you're not adding value, then there is no reason/benefit to keep you in the chain.

    If you're adding value to the process for either/both parties, then there is no reason to cut you out of the chain.
     
    Posted: Dec 7, 2018 By: NickGrogan Member since: Nov 15, 2012
    #4
  5. Mark T Jones

    Mark T Jones UKBF Ace Full Member

    2,805 798
    As above, the only things stopping them are your relationship with the supplier and the value you add.
     
    Posted: Dec 7, 2018 By: Mark T Jones Member since: Nov 4, 2015
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    13,078 1,406
    I'd suggest the retailer if the product works out should look at sourcing directly if that's what they normally do.

    Not every retailer wants the problems of sourcing directly.
     
    Posted: Dec 7, 2018 By: Mr D Member since: Feb 12, 2017
    #6