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 CBlev65252
 
posted on September 12, 2003 05:21:19 PM new
Just a simple question. Can someone you purchased wholesale from tell you that you are not allowed to sell what you've bought and paid for on Ebay or any other auction site? I thought that once you bought and paid for something is was yours to do as you please. I'm not talking about name-brand items. What recourse do they have against you if the item belongs to you?

Cheryl

 
 ihula
 
posted on September 12, 2003 05:25:45 PM new
I don't know what recourse you have if you're caught. They can always search for that widget, buy it, connect the sale to you, then stop selling to you and pass the word to others in their circle. I know of a few companies that won't let people sell the product on ebay because they feel it "devalues" it, or you must sell the widget for a minimum price. Many major golf companies make you sign something regarding the minimum price you can sell it for.

 
 lovepotions
 
posted on September 12, 2003 05:28:40 PM new
That is ridiculous!

They can't control how you sell your merchandise or where.

The only company I know of that forbids it distributors from selling online is Mary Kay cosmetics, even though plenty of those ladies do sell on Ebay anyways.

As long as you use your own pictures you should have no problem. If they give you trouble contact a lawyer.


http://www.lovepotions.com
 
 CBlev65252
 
posted on September 12, 2003 05:38:13 PM new
lovepotions

That's exactly what I thought. This is nobody that sells on Ebay. Okay, if they want to tell me what I can and cannot do with their items (actually MY items once paid for), I guess I can tell them what they can and cannot do with my money. They cannot deposit my money into any of their bank accounts. Only back into mine.

Cheryl

 
 stopwhining
 
posted on September 12, 2003 05:53:49 PM new
They can cease selling to you in the future if they feel you are cheapening their products to the extent it ruins the image they worked hard to build up.ruin their retail distribution network when their other retail customers cannot make a living selling their products.
some manufacturers care and some dont.
the good ones do.


-sig file -------The thrill is gone!!
 
 dacreson
 
posted on September 12, 2003 05:58:42 PM new
'Just a simple question. Can someone you purchased wholesale from tell you that you are not allowed to sell what you've bought and paid for on Ebay or any other auction site?'

Yes, they can and do. Their has been plenty of threads here about that very thing. They holler copyright infringement, lawsuit threats, to Ebay who caves and bounces you.

Of course some don't enforce what they say but who is to know until your auctions have been pulled. If it were me I would go slow on this one. Profit -lawyer = Zero.


 
 ihula
 
posted on September 12, 2003 06:15:22 PM new
I know of 2 people that used to be distributers for Taylor Made. They started selling for less than what the minimum requirement was and they are no longer distributers. Taylor Made has every right to do that, I can't imagine a lawyer will say different and try to sue them.

 
 stopwhining
 
posted on September 12, 2003 06:18:41 PM new
besides,what is the purpose of selling if not to MAKE A PROFIT??

-sig file -------The thrill is gone!!
 
 sparkz
 
posted on September 12, 2003 06:18:44 PM new
Why hire a lawyer, especially if they set a minimum price you can sell for and specify where you can and cannot sell? Instead complain to the U.S. Department of Justice that they are in violation of the Sherman Antitrust Act. Be sure you specify that you are interested in the reward, which is 10% of any monetary damages they recover when they prosecute the crooks. Then, list those items.


The light at the end of the tunnel will turn out to be an oncoming train.
 
 ihula
 
posted on September 12, 2003 06:26:42 PM new
If you enter into an agreement or contract with a company, and then break that contract (as in my Taylor Made example), I don't think the Sherman Antitrust Act is going to help you force the company to deal with you again.

 
 sparkz
 
posted on September 12, 2003 06:41:25 PM new
No where in Cheryl's initial post did she indicate she had entered into a franchise, dealer or distributor contract with the company. General Motors can tell it's authorized dealers what exclusive territory they are allowed to cover and specify MSRP's and other conditions. General Motors cannot tell the person who purchases that car from the dealer that he is prohibited from reselling a Camaro in Texas or a Monte Carlo in Iowa. They also cannot prevent him from selling his new Corvette with less than 25 miles on the odometer for $10.00 to the first person he meets on the street. Unless there are other facts that Cheryl has not revealed, I would think the party who needs the attorney would be the wholesaler.


The light at the end of the tunnel will turn out to be an oncoming train.
[ edited by sparkz on Sep 12, 2003 06:43 PM ]
 
 Twelvepole
 
posted on September 12, 2003 06:49:03 PM new
If it was stated on their "bill of sale" that the merchandise purchased cannot be resold on eBay or other type venues, then Cheryl has a choice... return the items or try selling at a flea market.


Sparkz, these are wholesalers, not retailers...

AIN'T LIFE GRAND...
 
 CBlev65252
 
posted on September 12, 2003 06:52:19 PM new
I haven't bought anything. Saying where you can and cannot sell prevented me from that. Thankfully, I do read the FAQ section of all sites. There is also no contract that I'm aware of unless it is an implied one. I wouldn't buy from anywhere that attempts to tell me what I can do with what is technically mine.

Edited to add: This is not a distributorship. It's merely buying merchandise with a wholesale minimum.

Cheryl
[ edited by CBlev65252 on Sep 12, 2003 06:53 PM ]
 
 kiara
 
posted on September 12, 2003 06:53:13 PM new
If the wholesaler has signed contracts with B&M owners in different territories and promised them that the product won't be devalued by being sold on online auctions, then perhaps the retailers could sue the wholesaler.

[ edited by kiara on Sep 12, 2003 06:54 PM ]
 
 ihula
 
posted on September 12, 2003 06:55:52 PM new
I agree - if she signed something stating she cannot sell on ebay then she shouldn't sell it on ebay. If they just expressed it verbally, and she does anyway then they can just not sell to her in the future. I'm pretty sure there is no law that says a wholesaler has to sell their product to an individual - it will suddenly be "out of stock". We met someone at the ASD AMD tradeshow that basically told us "if we don't like you or you sell our products too low so our other buyers can't compete with you we will just not sell to you in the future". I believed them - why wouldn't I?

 
 sparkz
 
posted on September 12, 2003 07:05:10 PM new
Twelve...I realize that these are wholesalers and not retailers. As such, I would assume they would have an agreement signed by Cheryl agreeing to abide by certain retail sales policies that was executed BEFORE she made her purchase from them. My whole point is that there is a very fine line between a bona fide franchise contract and restraint of trade. Even after being in a business for 40 years that operated under a limited exemption from price fixing regulations ( the exemption was section 5-A of the Interstate Commerce Act) it was still difficult to see where that line in the sand was drawn. An attorney would charge her a couple hundred bucks to look for that line and he might not see it. A DOJ attorney will only cost a .37 cent stamp and photocopies of all correspondence to look for it. And if he finds someone crossed over it......


The light at the end of the tunnel will turn out to be an oncoming train.
 
 CBlev65252
 
posted on September 12, 2003 07:19:57 PM new
Or, could it be they are afraid I'll make more money selling their items on Ebay than they do on their website. Ya, right. .

Like I said, no contract. It's a written statement on their website. I'm not a lawyer so I don't know if that's an issue or not. They aren't even an American company. They main headquarters is located in a different country, but they do have offices here as well.

I tend to run when things start getting so complicated that it causes a headache. I'll stick with the suppliers I know and love - mostly those at estate sales.

Cheryl

 
 Fenix03
 
posted on September 12, 2003 07:31:55 PM new
heryl - I have seen that fro a few jewelery wholealers. They want you to agree not to selll on ebay because ,lets face it, jewelry usually doesn't come close to retail avlue on there. If their signature or exclusive designs are readily avaliable on ebay for far below what their retail customers are able of willing to sell for it, they start losing customers. They are trying to protect the value of their product and as sellers have that right. If they place that stipulation on their site and you purchase from it, you have agreed tothat stipulation and if they feel that you have damaged thier business or a customer states that they are no longer purchasing because of ebay sale of the product, they can come after you.

There are so many companies out there that do not attach that stipulation, I would (and quite frankly have) just keep looking until you find one more accomodating to you.
~~~ • ~~~ • ~~~ • ~~~ • ~~~

Men Are Like Grapes. If You Stomp on Them and Keep Them in the Dark Long Enough, They Might Turn Into Something That You Would Take to Dinner
 
 AuctionAce
 
posted on September 12, 2003 07:38:41 PM new
What's to keep an ebay seller from agreeing to the terms and buying the stuff and then selling off ebay to another ebay seller? Even seting up an ebay seller's account of a close relative's name and address just to off the stuff? Where there's a will, there's a way.


-------------- sig file ----------- President John F. Kennedy said, "There are three things which are real: God, human folly and laughter. The first two are beyond our comprehension, so we must do what we can with the third."
 
 sparkz
 
posted on September 12, 2003 07:45:54 PM new
I have dealt with wholesalers my entire adult life, and never once had one concern himself with where I sold the product or what I charged for it. In fact, they wanted me to turn it as fast as possible so I would have to order more from them. It's called Capitalism.

Ace...Interesting concept. A great way to get the teenage kids set up as sellers and keep them off the streets(except when they're on the way to the P.O. or the bank).


The light at the end of the tunnel will turn out to be an oncoming train.
 
 CBlev65252
 
posted on September 12, 2003 07:59:44 PM new
fenix03

Good point. However, if they are selling it to you at only 30% off the retail price (or even at 50%), you'd have to sell it at retail or above to make any money at all. Even at 50%, you'd like to at least double the money you spent. I see where there may be a few sellers who are happy to make $5.00 on an item. To me, that's not making any money. That's barely keeping one's head above water. I buy from wholesalers that sell to me far below what retail would be and that is where I can make money. I can sell at below retail and still be swimming. I think this company is shooting itself in the foot. I can guarantee there are more buyers on Ebay then at their website these days. Especially when you consider that most of these companies charge an arm and a leg for shipping. Maybe they tried selling on Ebay once and had a bad experience? Could be anything.

Cheryl

 
 ihula
 
posted on September 12, 2003 08:05:48 PM new
Well, the liquidator I talked to told me the reason he does it (makes people start the price at a minimum amount) is because he doesn't want one buyer to make a $5.00 profit off the item and then he loses his other buyers because they don't feel its worth selling for that kind of money. It made sense to me and made me want to deal with him. He is aware of what goes on in the ebay world and even used the one cent no reserve auctions as an example. He's right, if I saw a bunch (he mostly dealt in cameras) listed on ebay for that amount and it ended low I wouldn't buy his product, and soon he wouldn't be able to sell the quantity he wants.

 
 AuctionAce
 
posted on September 12, 2003 09:15:25 PM new
I'd say the majority of ebay sellers are lucky to make $5 profit per sale. There must be millions of auctions that end under the $5 mark and unles the sellers got the stuff for free and gouge the buyers on s/h that their profit.

10 of the $5 profit sales equals a $50 profit and 100 of those sales equals a $500 profit.


-------------- sig file ----------- President John F. Kennedy said, "There are three things which are real: God, human folly and laughter. The first two are beyond our comprehension, so we must do what we can with the third."
 
 jake
 
posted on September 12, 2003 09:45:57 PM new
There does seem to be a very fine line between a company having "minimum pricing" and price fixing. It sure seems like the same thing to me. But you see it all the time.

I remeber a show on tv awhile back where they were talking about the diamond industry. One of the rich miners they interviewed stated that diamonds are actually worthless, and are not rare. Pricing is just fixed to create the illusion of rarity.

There should really be some online price fixing to equal the real world. How many bookstores do you see selling books for a penny? Why is the internet seen as everything must be cheap? The internet should have higher pricing than retail stores because it is a convenience to shop online. Just like convenient stores have higher prices than grocery stores.


 
 gclubman
 
posted on September 12, 2003 10:17:33 PM new
It is a known fact that customers go to ebay in search for a rare item or a DEAL.As sellers we try to provide that deal because we can move a large amount of product!Competition is great for the consumer.We are all consumers of products.All companys that forbid, and I have found its not a good idea to mention you sell on ebay to any wholesaler.They should just skip us the midddle man and sell on ebay themselves.Is it lack of knowledge or too much greed?

I challenge all companies period to open your market to e-business and see what happens.The economy will skyrocket!Products will be cheap. Who will manufacture these products? OK now we are producing jobs!

In closing any company AFRAID of competion is one I will not invest my retirement in!

 
 sparkz
 
posted on September 12, 2003 11:06:30 PM new
gclubman....Amen
The light at the end of the tunnel will turn out to be an oncoming train.
 
 Fenix03
 
posted on September 12, 2003 11:28:51 PM new
LOL - have you looked at the where most of the items you purchase these days are being made? Any particular reason that you think that increased demand for these items will suddenly cause their manufacturing locations to move to the US? Clothing will still be created in the Philipines, TVs will still be manufactured in Tijuana, Jewelry will still be manufactured in Hong Kong, Taiwan and Bangkok
~~~ • ~~~ • ~~~ • ~~~ • ~~~

Men Are Like Grapes. If You Stomp on Them and Keep Them in the Dark Long Enough, They Might Turn Into Something That You Would Take to Dinner
 
 ihula
 
posted on September 13, 2003 05:30:29 AM new
gclubman - you are looking at it from the consumers pont of view and not the seller/retailer. If I understand your post correctly (and I may not because its early - have to go to the post office before soccer games today) you're basically saying the more sellers the merrier. Aren't we all complaining about that constantly in other threads - that ebay has too many sellers so prices are so low? There's no way I'm going to invest $1000.00 in 5 digital cameras just to make a $25.00 profit, or worse yet start them all out at a penny like my competitors and "hope the ebay market tells me what their worth." If 1000 sellers are doing the same thing with the same product I'll tell you what their worth - a penny. That's tying up way too much money when there's a higher profit to be made with other dealers.

People always ask "why don't wholesalers just sell the item themselves on ebay". I belong to a broker forum and they hate ebay - they've either been shafted for one reason or another, they hate dealing with NPB, they hate the politics, etc. Right now you can make more money in a shorter amount of time as a wholesaler than a seller on ebay. I just bought 300 golf training aids that are sitting in my living room. I would rather broker them out for $100.00 profit in one day then spend 6-12 months listing them and eventually wind up with $300.00. If you can turn over product quickly for a profit and continue to do that consistantly then that's the way to go.

We are somewhere in between. We don't have enough contacts to continually broker or become liquidators, but when we fall into a deal with a large amount of inventory we will sell some of it to someone else. It's not making us any money just sitting in the living room (or warehouse if your a large seller).

 
 stopwhining
 
posted on September 13, 2003 06:27:34 AM new
get up in the morning and with a cup of coffee in my hand,i have to read the most stupid argument - how to fight for one's right to SELL FOR LESS??
How about learning to mown the lawn of the up and coming indian middle class or be a good sushi chef for the chinese entrepreneurs?
have a good day!
-sig file -------The thrill is gone!!
 
 AuctionAce
 
posted on September 13, 2003 06:35:00 AM new
In that vein, you see the same thing at flea markets. Some sellers want to move their merchandise as rapidly as possible and they have the lowest possible prices and they also wheel and deal a lot. Other sellers hold out for 'their' price and sell much less product but the do get better prices.

The more sellers at a flea market the less chances the sellers will make money as there is competition and buyers spend their money on other items. Maybe they had planned to buy a socket set but bought 12 pairs of factory irregular socks from a guy wearing a turban instead type of situation. The large number of sellers acts as a draw to get customers but when those customers go into the frugal mode due to a weak economy they are almost always looking for bargains only and the sellers blowing out their stuff as fast as they can gain another edge.



-------------- sig file ----------- President John F. Kennedy said, "There are three things which are real: God, human folly and laughter. The first two are beyond our comprehension, so we must do what we can with the third."
 
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