The cheek of it!

Discussion in 'General Business Forum' started by Guy Incognito, Jul 7, 2019.

  1. Guy Incognito

    Guy Incognito UKBF Contributor Free Member

    45 5
    We get a fair number of odd requests, but one this week took the biscuit.

    Owner of a website wanted to list our products on their website (we don’t allow resellers). This is a fairly common request so nothing particularly unusual there.

    They then wanted us to ship them in plain packaging to their clients with no information on the invoice (product names, company name etc).

    I found it astonishingly rude to even suggest such a thing. You want to sell our products and pretend they are yours?
     
    Posted: Jul 7, 2019 By: Guy Incognito Member since: Aug 2, 2016
    #1
  2. AllUpHere

    AllUpHere UKBF Ace Free Member

    2,902 1,029
    Pretty common. All sorts of stuff is white labelled these days.
     
    Posted: Jul 7, 2019 By: AllUpHere Member since: Jun 30, 2014
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  3. Mr D

    Mr D UKBF Legend Free Member

    14,902 1,626
    Dropshippers.
    Pretty common. Handy to have when you want more sales.
     
    Posted: Jul 7, 2019 By: Mr D Member since: Feb 12, 2017
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  4. intheTRADE

    intheTRADE UKBF Contributor Free Member

    55 9
    As has been said already, very common these days.

    Whilst at first glance you may think it is cheeky, but it may be worth looking at who they are, where they, their traffic levels etc because if its products in demand for their customer base would it be such a bad thing sending your products out plain package if it meant a decent increase in your sales levels?
     
    Posted: Jul 7, 2019 By: intheTRADE Member since: Apr 14, 2019
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  5. Guy Incognito

    Guy Incognito UKBF Contributor Free Member

    45 5
    We sell out on pre-order as it is so don’t think we’ll be giving any of our profit to someone else!

    Don’t mind the notion of dropshipping in theory but I figured companies sent their products out as they usually do.

    Anyway, we thanked them and moved on.
     
    Posted: Jul 7, 2019 By: Guy Incognito Member since: Aug 2, 2016
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    14,902 1,626
    That's the thing about people buying from you.
    They all pay the price you want for the item. You don't give any of your profit away.
    If you sell at £30 retail then a dropshipper usually will pay £30 retail.
    What they charge their buyer is up to them. Usually more than you were paid. No loss of profit for you.


    Dropshippers often prefer their customers remain their customers rather than being nicked by the sending company.
     
    Posted: Jul 7, 2019 By: Mr D Member since: Feb 12, 2017
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  7. James Johnson

    James Johnson UKBF Newcomer Free Member

    26 8
    Don’t take it to heart, sales are sales, think of your bottom line. I used to do this all the time with a product I used to sell to the UK from a German company I used to buy off.

    Made him £20k ish in a year so I don’t think he minded. You need to be a bit more objective in business and not get to personal with things.

    It reminds me of the time I was going to buy a flat in a block that was owned by one person (the block) I was looking forward to settling into this nice cosy little home until I overheard the owner saying he had ‘24 units’ ... put me right off but from that day forward I never forget the lesson I learned.

    I still remind myself of that story every time I start getting to cosy with my own business and also remind myself that every ‘unit’ I sell makes me that little bit more wealthy.
     
    Posted: Jul 7, 2019 By: James Johnson Member since: Sep 23, 2018
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  8. billybob99

    billybob99 UKBF Regular Free Member

    1,014 210
    R.I.P money that was on the table.
     
    Posted: Jul 7, 2019 By: billybob99 Member since: Apr 23, 2013
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  9. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    4,218 852
    Keep their number, in case you hit a slow patch in sales.

    Your circumstances may change . . . . . and so may your attitude to selling to other ‘sellers’.
     
    Posted: Jul 7, 2019 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
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  10. AllUpHere

    AllUpHere UKBF Ace Free Member

    2,902 1,029
     
    Posted: Jul 7, 2019 By: AllUpHere Member since: Jun 30, 2014
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  11. TheoNe

    TheoNe UKBF Regular Full Member

    135 12
    This is beyond standard. Gocompare, moneysupermarket etc all use a lot of the same tech. Most TV's are made in the same factory. All flash memory is made in one factory. Loads of cars on the road are identical with different bodies. Most industries will have a lot of cross over.

    If you have something other people want to re-brand and sell then you are just doing good business. Do more of it! Even make it easier and better for people to do more of it. Offer a bespoke packing service to not just white-label, but use the re-sellers logo to help them with repeat business, make the experience better for them, as they'll be doing most of the hard work for you.

    No need to be offended!
     
    Posted: Jul 8, 2019 By: TheoNe Member since: Jul 6, 2019
    #11
  12. TheoNe

    TheoNe UKBF Regular Full Member

    135 12
    To follow up on this, I'll try and explain why it's a good idea and you might wish to consider your position on resellers. No business can achieve maximum market saturation alone. You can have the best Google ads in the world, a perfect facebook audience etc etc etc but some customers will only buy X widget from homewidgets.com as they have brand loyalty there. No matter what you do you won't get those sales, so you need to get the product on their shelfs. Also people will have their own customer lists built up over time that will be nearly impossible to get hold of unless you let them sell your product in one way or another.

    If you want broad market coverage, establish a solid distribution plan including white label, affiliate & drop shipping.

    There are very few reasons not to unless you have a super exclusive, patented or protected product that is already top of mind in the general population. I can't think of many.

    Another good example of white label is Tesco Finest Premier Cru, it's the same grapes as Moet with a slightly different mix. No massive advertising bills, 1/2 of the price. Nearly the same drink. The vineyard doesn't care, the profit is the same but you can get the bonus of massive volume.
     
    Posted: Jul 9, 2019 By: TheoNe Member since: Jul 6, 2019
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  13. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    3,917 1,246
    I disagree with the usual suspects and agree with @Guy Incognito . If he wants to run his company this way making his client base the end user only then that in the long run could make him stand out as a quality supplier .

    I also turn away some work where most people would say I am just turning away money but we know what were are doing It is easy when you know what you are looking at
     
    Posted: Jul 9, 2019 By: JEREMY HAWKE Member since: Mar 4, 2008
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  14. Noah

    Noah UKBF Ace Free Member

    1,161 290
    Not quite the same thing, but we allow some of our trade customers to put their own retail brand on our products; I usually "strongly recommend" they retain some component of our brand alongside their own, as this seems to me to be mutually beneficial, and all such customers to date have agreed.

    In general, this significantly strengthens customer loyalty and is beneficial to sales volume across the board. There is a concern with brand confusion for consumers though, and so you should ensure you take every opportunity to minimise this (without treading on the toes of your own customers).

    Other problems can arise; the most egregious was a mis-labelling of another product with our brand - an inferior product, of course. I "brought this to their attention" rather pointedly (accepting it was a genuine mistake) but we haven't taken more drastic action... yet.

    As I say, not directly comparable to your situation, but all grist to the mill, what?
     
    Posted: Jul 9, 2019 By: Noah Member since: Sep 1, 2009
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  15. Calvin Crane

    Calvin Crane UKBF Regular Full Member

    206 31
    I dropship! And I am always looking for (good) suppliers. And I get my own traffic often paid for myself. Why should I not do this? If I dropship from manufacturers and I pay trade price everyone's a winner.
    It works wayfairer the really big website yes do this too.
     
    Posted: Jul 12, 2019 at 11:22 AM By: Calvin Crane Member since: Jun 8, 2018
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  16. Glen Wheeler

    Glen Wheeler UKBF Newcomer Free Member

    11 4
    A simple one really, just say no and let them get on with it. Really rude and unprofessional
     
    Posted: Jul 13, 2019 at 6:56 AM By: Glen Wheeler Member since: Dec 6, 2016
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  17. fisicx

    fisicx It's Major Clanger! Staff Member

    30,357 8,923
    No it's not. Selling white label products is very common and can be very profitable. All they did was make an enquiry.
     
    Posted: Jul 13, 2019 at 7:49 AM By: fisicx Member since: Sep 12, 2006
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  18. Glen Wheeler

    Glen Wheeler UKBF Newcomer Free Member

    11 4
    I would have approach the enquiry differently, something like getting to know each other first and how they could develop a working relationship. Not.."I want your products and I also will white label them, thanks, bye" thats how that approach comes across. I would delete the message immediately, it's not how you approach a new business relationship. Would you not have a face to face or telephone call first?
     
    Posted: Jul 13, 2019 at 9:07 AM By: Glen Wheeler Member since: Dec 6, 2016
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  19. Paulo1Chop

    Paulo1Chop UKBF Contributor Free Member

    45 3
    It seems like this question was already answered in Guy's mind, before it was asked here! He sounds a bit precious to me, but each to their own!
     
    Posted: Jul 13, 2019 at 8:45 PM By: Paulo1Chop Member since: Jul 12, 2019
    #19
  20. David Haughton

    David Haughton UKBF Newcomer Free Member

    27 5
    So somebody was going to buy products from you, and remove your name from all packaging, thus reducing any potential headaches from the end user? And you not only said no, but found that rude?

    Aren't most products these days repackaged and rebranded as per the clients requirements?
     
    Posted: Jul 15, 2019 at 2:48 PM By: David Haughton Member since: Aug 19, 2017
    #20