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9/22/2017 12:11:25 AM
Posted: 8/14/2005 2:12:25 PM EDT
I bought a very small company 5 months ago, I've worked for this company as a private contractor
for 8 years
One of the brand names that I sell makes up greater than 30% of my sales
I also WORK as a private contractor for a company that sells to the same customers as MY company does.

The BRAND name vendor that I buy and resell their items now wants to end doing business with me citeing the fact that I don't buy as much as a national account {the company that I do work for } will do for them
I've paid my bills in 10 days to take advantage of all of the discounts that I can get to add to my profit, I've stocked all of their sku's even the low margin high dollar items that don't turn very well

The U.S. courts in two cases that I'm aware of have rulled in the side of the company that gets cut off from the seller IF greater than 27% of the companies total income comes from one soure.

should I
A. shut up and walk away letting two companies collude to put me out of business
B. sue the vendor that is trying to stop me from making a living so that they must sell to me
C. sue the both of them for collusion
D. other suggestions?
Link Posted: 8/15/2005 9:16:46 PM EDT
Well this is a tough spot to be in. A big vendor trying to squeeze you out to help (I would assume) one of their biggest clients bottom line.

I will make the assumption that you are dealing with a manufacturer of some type.

First thing I wonder, is you mention BRAND name vendor. Is the market you are appealing towards geared for brand name stuff? Could you go by on an off brand?

I like your thining about the collusion - which might get their attention, but I would then worry about the vendor selling you seconds and poor quality parts to get back at you. Then of course your customers will be blaming your for poor quality merchandise.

It basically is going to boil down to how much are you willing to risk.

Is this a market that can be serviced by a substitue item? If so you might want to look at finding a substitute cheaper and appealing to companies and individuals trying to enhance the bottom line.

Might even consider importing the item, if possible.
Link Posted: 8/16/2005 4:42:36 PM EDT
I wold try to aviod legal action at about all cost. That would be quite drawn out, and expensive.
Link Posted: 8/16/2005 10:35:32 PM EDT
found out today that I don't have a leg to stand on via my lawyer

my dad tells me to suck it up like a man and take the hit....not to do anything that will harm my
future ie dumping on e-bay

it might kill my company.

I'm losing 38% of my sales!

I'm looking to add more products..I'm calling in all of my favors and begging at this point
I'm so bummed only saving grace is that my biggest trade show is a month away and I will start making calls to line up replacement lines
Link Posted: 8/17/2005 10:06:04 AM EDT

Shoot me an IM or email.

I would like to know what you sell/serve.
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