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Related Articles: Business FinancingPhony Wholesaling Competitors and Example Letters to Retailers, the IndustryLocating A Business, Set-up,

/Go Rin No Sho of Business

Phony Wholesalers/Wholesaling:

Example Letter to Other Retailers

 

 
Bob Fenner  

 

Name of owner, manager

Address

Date

 

Fellow Pet Industry Professional,

I am writing to you in search of facts and support in order

to halt what appears to be unfair practices on the part of

(number and name of participating companies). It seems these stores have produced and operated a "front" "wholesale operation" known as (Name if known) and other "drop-shipment" locales these last few years, selling only to themselves.

I question whether (name) is a legitimate distributor. Has anyone from these retailers approached you to become a possible wholesale customer? Have they attempted to provide you customer service as a wholesale customer? Is it your understanding that these people are legitimate wholesalers, such as (examples)?

My rationale for bringing up this issue up is noted in a letter to the suspected manufacturers involved. (copy enclosed). Are you aware of other manufacturers?

Please help me help our industry and hobby in (geographic area) by ensuring we are all playing the game by the same set of rules. If we cannot buy supplies and livestock for the same price, under the same set of terms and conditions, it may be expedient to urge honest dealings via a boycott of certain manufacturers. Please respond to my questions and let me know your thoughts and concerns. I will keep you informed.

Sincerely,

(your name)

(Title)

Phony Wholesaling Competitors by Bob Fenner and Example Letter to Wholesalers/Distributors - 10/10/10
Hi Bob!
<Hello Chris>
I'd just like to start off in saying that I think your site is great, I often refer people to it that come into my store and truly want to do more research on there own. Such a wealth of knowledge! I've also recommended your book several times, had many people thank me for recommending such a good read!
<Much good help putting CMA together>
I've read your articles on the phony wholesaling and the letter to wholesalers/distributors and firmly agree with your points on these,
<Wow! That piece is... about thirty years olde!>
however I just wanted to get your opinion on a certain online retailer with connections LeeMar that actually sells the products on there website for below wholesale costs.
<?! Not smart if so>
I thought I should ask when I actually came across a product link to the online vendor
<Who? Lee Mar?>
in your Q&A's and noticed after searching that there were several more...
I know you (Bob) have not plugged them, but it just seems that some crew members are giving support to a company who is doing things you yourself have said should not be done in the industry, and for good reason.
It just seems sad that certain distributors won't even match pricing on products that they have for retail elsewhere, at least with Marine Depot they
will always keep the true wholesale pricing below retail.
Just curious on your thoughts on this Bob... and again, great work on the website, I owe you a beer sometime for all the knowledge you've given me!
Chris
<Thank you for sharing Chris... Could you point me to an actual example or two here w/... Lee Mar?
I don't see on their actual site: http://www.leemarpet.com/
BobF>
Re: Phony Wholesaling Competitors by Bob Fenner and Example Letter to Wholesalers/Distributors - 10/10/10
Bob,
<Chris>
Sorry for the confusion. I had meant that I was browsing your website WWM and had come across a link to a retail online website posted by one of your crew to an online retailer who participates in these actions. I did not want to further advertise or plug this online retailer that should go un-named (petmountain) that is somewhat related to LeeMar and sells at below wholesale.
<Mmm, well... as much as I abhor this practice (undercutting ones own customer base), I do not choose to censure others, including the friends and associates who are WWM's crew... If they have found value in dealing with these outfits, they are free to express their impressions>
Links on your website:
http://www.wetwebmedia.com/marmechf1.htm
http://www.wetwebmedia.com/reefsetup10.htm
http://www.wetwebmedia.com/plantedtkssubwebindex/lgtfxtfaqags.htm
http://www.wetwebmedia.com/fwsubwebindex/sliderfaqs2.htm
I just wanted to know your current opinion about this, and the practices used by the phony wholesale model. It just really upsets me when companies do things like this.
<The trade lost it's sight re such activity a few decades back... I would ask (as usual), "Who is served" with such discounting? By driving out the retailer/s, service side of their business, the entire industry and its
consumers are diminished... My typical counter example is to point out the medical and dental professional fields... What would be gained by having "discount" doctors, dentists?>
And sorry for any additional confusion, I'm not asking that they be removed or complaining that they were posted, just curious on your current opinion on these types of things.
Thanks again,
Chris
<Thank you Chris. BobF>
 



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