Another business is buying from us in bulk then selling where we sell.

Poshsalt

Hi

I have a product that I manufacture and sell via website.

Some times I get people who have shops who want to sell my product so I sell them in bulk at a discounted rate.

The problem is are main income is from google ads shopping and we have sold to another businesses and there selling on google ads which is reducing our main income.

Is there a way to say to a business who buys it they can sell anywhere but not on google ads? Or once they get it they can do what they want.

Regards

Jeremy535897

The easiest way to deal with it is not to sell them at a sufficient discount to make it worth their while. If they are selling in the same place as you, you should be able to sell directly to their customers. You could put a condition in the terms of sale, but if you do, they are either very unlikely to buy them, or more likely will ignore the condition you impose.

cymruchris

When you sell in bulk at a discount - what's your profit margin compared to when you sell direct?

If you hadn't sold the bulk sale - would you make sufficient income from your regular sales?

If you started trying to impose conditions on your buyers - they'd likely stop buying as there'd be no profit in it for them.

Either you continue as is - let them buy in bulk - you make a profit - they make a profit - or you put your price up - they stop buying and you then only get your direct sales (which might increase if they stop selling your product)

Which one works best for you?

tightauldgit

Yes, you can put it in your terms that for example products cannot be resold online or not via a specific online retailer like Amazon, Google, etc. Or you can simply not sell to them anymore. 

It's fairly common with smaller suppliers that I have had supply my business in the past that they will say that items are not to be resold on Amazon as they sell there directly and they don't want us to compete. I think generally businesses respect those terms and adhere to them. Of course some people may stop buying from you but that's just one of those things.   

Poshsalt

ok thanks for your help.