The Wholesale Forums

[diablo audio]

Thanks .

[TheNiceGuyOK]

I think people have already proven that there is no such thing as "factory direct". If it is from the factories which the products are being manufactored ( which can easily be accessed online), then it's not factory direct. Alot of scammers will try and sell you fake products with hellmanns escrow, so they can run off with millions of dollars. I think this is what almost happen to Harry, but he was smart enough to back out.

Originally Posted by skipcloudwalker

What most of the internet distributors and others alike actually do, they purchase factory direct..which means, production runs and such..


the product becomes there product...your bank has to be in the 10's -100's of millions of dollars to even think about purchasing factory direct..

and still, it's not just about how much money you have, it's about who you know...and who you get to know..

Becomming an authorized distributor for these companies, you have a contract agreement with them. Meaning, you do not own the product..but you are simply brokering the product directly from the company...and they set their own price..you cannot break that contract or you can kiss your contract goodbye..You can only distribute to authorized resellers that have been authencated through the company..It's a big ol complex chain..

Then you have the large purchasers..Guys that can actually afford to purchase and set up a production run to obtain product at factory direct prices.......They own the product that they purchase from the factory and therefore, can do what they wish with the product and sell at whatever price they desire..Thats why you have lots of internet companies and wholesalers selling for way less than authorized distributors...Undercutting the competition..but the authorized channels have that client base..it's a huge client base..Ingram Micro is worldwide!! Hence, they can afford to make $1 profit from the mark up's that the company contracts the wholesale agreement in which they can sell the product..

One strategy that i don't think anyone has ever tried is to open an account with one of these large distributors where your currency outweighs their currency..Hence, the products are a lot cheaper and in a way can be classified as Gray Market product through authorized channels..

If anyone has ever tried this, hit up this thread with how it's working out for you..are you even allowed to do such a thing?..

[diablo audio]

I don't know how these guys are in business. They have to be selling to major retailers for less than $251 per unit (retail $249.99). I'm sure they just don't want to supply the small man.