Would You Buy from a "competitor"?

[Niche Products Ste]

Hi All
I am somewhat reticent about starting this thread as I know it is a controversial issue. So here goes (tin helmet already on!).
After 15 years of trading successfully trading online we have almost exhausted our growth. We are now looking into the idea of selling to trade accounts - B2B - wholesaling - call it what you like.
I understand that this activity isn't straightforward as there is 'sales channel conflict'. I know that many retailers will not buy from someone who is also retailing as there is a conflict of interest (both parties are selling to the consumer). This resistance is fair enough. However, the UK commercial landscape seems to have changed over the last five years or so. Many of our own UK suppliers are already selling direct on channels such as Amazon.
Our aim is to enter the market and be highly transparent to our potential retail customers about this. A good idea or not??? Retailers would be encouraged to sell at the same prices that exist on our own website (net profit returns would be 45 to 50% P.O.R.). We know these products are popular and priced well as we have been able to fine-tune our selection and prices to meet market demand over the years.
I'd imagine B&M stores could increase this margin by selling above these SSPs as I think the customer may be willing to pay a premium for the convenience of purchasing from a local store.
Does this opportunity sound reasonable......or would you chase me out of your shop?
The other option is to try to 'hide' the direct side of the business but I'm looking to start off on the right foot.

 

[The Wholesaler]

If you are up front with the fact that you offer both wholesale and retail and you are not going to get into a price war with your trade customers there should not be a problem.
Also if you can pass on some of the knowledge of your 15 years successfully selling these products, in my eyes you would be an ideal supplier.

 

[mhall]

Happens all the time. If you went to the Autumn Fair you would have found ITP imports selling lots of stuff to poundshops. I saw little mention that they are actually Poundland.
If you have a card shop, there is a chance that you will be buying from a wholesaler in the Midlands that owns Write Card, who could well be your direct competition

 

[Mayor]

Easy for us. If you sell direct to the public at a price I can match (or beat) with a decent margin, you're on. If you undercut me, or out market me, you're sacked. Simple. I would prefer to be told up front, in the past when I have discovered that I am being undercut by a supplier (even if it is under a different brand), they're out. There are very few product lines that I need so badly that I'll take a hit.