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Wholesale Liquidation Advice Needed - Help!

by Mystery777
4 replies
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Hello everyone,

I need your opinions on something.

I'm trying to work as a middle man between companies that need to sell products in wholesale, and other companies who are interested in these products.

Since I'm newbie to this, and since it is unwise if I asked the buyer to send the money straight into my bank acc, then I send it in turn to the seller after deducting my commission... (same with the product.. comes to me first then I send it to the buyer), I decided on a better way. I'd have the buyer send the money to the seller and will expect the seller to do as agreed and wire me my commission. Both will know I am the middle man.

This way, I evade taking responsibility for anything that might go wrong. Many times, it works and you get honest companies that pay you. Few times, you get scammed and they don't pay.

Ok, so here is the dilemma with this new specific case: Some supplier company that sells a new "hot item" (wholesale) which is in demand everywhere, is looking for a distributor in some specific areas of the world. I easily found another company that is interested in becoming the distributor in their region and they agreed to the price and everything. (Actually, not only one who is interested, but more than one in diff regions).

Ok, now they want to order. Thing is, with this specific case, neither of them knows I am the middleman. They think I am the other party.

I think I'm trapped. Both of them want my company's info, address, fax, tel, bank info..etc. to proceed. This case is diff because there is gonna be continuous biz relationship. They will order more and more every few weeks. Not sure if I should tell either of them I am the middleman. The products have the info about the supplier on them and both can easily cut me off in future dealings.

Also, it won't be practical for me to receive the money and the products here, then ship it to the buyer.... these are big orders and this will incur more fees on me. Besides, I'm not sure it is the good approach since the supplier wants a DISTRIBUTOR. I think they might have the right to know who they are dealing with.

Any advices guys?

Thanks...
#advice #broker #liquidation #middleman #needed #wholesale
  • Profile picture of the author Silas Hart
    Being "known" as the middleman in most transactions is something that has to be unknown between two parties or well established and agreed upon by the buyer because a buyer Will try to get closer to the supplier, and you don't want to be considered a gatekeeper of transactions, you want to be apart of the process. Also, a company that pays you commission will have to configure that into their expenses as you being someone that collects like an independent contractor. You are likely to be viewed as overhead, much like how some of the first staff to go in a downsizing is the sales staff. It is better to establish yourself as the person in between that handles the logistics.

    You are right, the distributor will likely seek the supplier after the first shipment if the boxes are marked. This is why many middlemen also repackage and organize merchandise.

    I am a clothing middlemen for factories in China that produce what I deem as fashionable clothes and I sell retail accessories for fashion stores. I deal with factories and distributors and I have to repackage goods. Almost every time I haven't, stores and distributors have tried to track down the factories and will cut me out (it's business) and at this stage, the buyer gets it for less and the supplier sells for more.

    You say that you want to avoid being the one who could be blamed in case something goes wrong - which is essentially your job in such transactions, you facilitate the transaction and if something goes wrong between two parties, you have to fix it. That is how you earn your money and is how both parties find security in each other.
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  • Profile picture of the author YourProfessional
    If you're going to do be doing this seriously, you need to have a plan of action. You need to let people know that you are a Liquidation Broker, who just "brokers" the deal. If not, you're going to find yourself in the situation like you are now.

    Rather be honest upfront - a lot of people will still want to work with middle men because you can promote your expertise in finding reliable buyers.
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  • Profile picture of the author Reann avenus85
    Hey if you are looking in for such wholesale liquidation business you should find in yourself into merchandise selling business, wherein they can aid you and give required guidance with regards to this business.Also you can check into our business as you'll get the most expertise and prominent info..
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    • Profile picture of the author startup
      you need to be positioned as a principal when dealing in liquidations..... we have owned surplus and retail operations and can help you... send me a pm if you need direction
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      Maverick Arbitrage Secrets - If you can follow a simple, step by step blueprint, you can start your own Product Arbitrage Business, starting with ZERO cash, today! http://www.warriorforum.com/warrior-...inventory.html

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