new business

[tbtb86]

What is the name of your state (only U.S. law)? nc
I'm interested in starting a business reselling health and beauty products purchased from local grocery and drug stores. Is this legal?

 

[JETX]

I'm interested in starting a business reselling health and beauty products purchased from local grocery and drug stores. Is this legal?

Simple answer... no.

 

[JustAPal00]

Simple answer... no.

I disagree! Of course you can't sell prescription medicine from a "drug store", but shampoo, perfume, and other health and beauty products would be no problem.

 

[JETX]

I disagree! Of course you can't sell prescription medicine from a "drug store", but shampoo, perfume, and other health and beauty products would be no problem.

Guess you never heard of 'Master Reseller Agreements', 'Restricted Marketing Contracts', 'Exclusive market' or similar marketing restrictions, huh??
Ever wonder why you can't buy high-end cosmetics (Chanel, Estee Lauder, L'Oréal, etc.) at Walgreen's or Wal-Mart??

As I said, the simple answer is no. The far more complex answer is maybe.

 

[JustAPal00]

Guess you never heard of 'Master Reseller Agreements', 'Restricted Marketing Contracts', 'Exclusive market' or similar marketing restrictions, huh??
Ever wonder why you can't buy high-end cosmetics (Chanel, Estee Lauder, L'Oréal, etc.) at Walgreen's or Wal-Mart??

As I said, the simple answer is no. The far more complex answer is maybe.

All of those agreements are between the manufacturers and the resellers they deal with. Once the product has been sold it has met the requirements and is the property of the new owner who can do with it as they wish, including SELLING IT! You can't by a new Chevrolet from a Ford dealer, but once the Chevrolet dealer sells it the Ford dealer can buy it and resell it!

 

[JETX]

All of those agreements are between the manufacturers and the resellers they deal with. Once the product has been sold it has met the requirements and is the property of the new owner who can do with it as they wish, including SELLING IT! You can't by a new Chevrolet from a Ford dealer, but once the Chevrolet dealer sells it the Ford dealer can buy it and resell it!

Correct... but the Ford dealership will not sell the vehicle for a profit if they have to purchase it at RETAIL.

In re-reading the thread, I see where the OP is claiming that he would be purchasing his 'product' from "local grocery and drug stores", but I really don't see any way to make a profit by purchasing at retail and then adding a profit to it.

I would suspect that in order to make a profit, the OP will be purchasing 'gray market' (from an authorized 'dealer', but out the back door). And that would be a violation of the dealers reseller agreement. And there is LOTS of case law prohibiting such sales.... including everything from high-end 'accessories' (chanel and DB purses, etc.) to high-end cosmetics (sold at Macy's, Nieman's, etc. but NOT at Walgreens) and even including beanie-baby's.

I agree that I have made a 'jump' here.... but I think it is a logical one. Maybe my original post should have been something like:
"Yes, you can purchase items for retail and try to add a profit to it, but you won't be in business long with that 'business plan'." Better??

 

[JustAPal00]

Correct... but the Ford dealership will not sell the vehicle for a profit if they have to purchase it at RETAIL.

They may! As a former wholesaler, it would depend on the vehicle and where the original sale took place and where the ford dealer is located. There is not nearly the demand for convertibles in anchorage as in phoenix. many new cars sell for over sticker. Any dealer who thinks they can make a profit may purchase a vehicle for sale on their lot.

In re-reading the thread, I see where the OP is claiming that he would be purchasing his 'product' from "local grocery and drug stores", but I really don't see any way to make a profit by purchasing at retail and then adding a profit to it.

I would suspect that in order to make a profit, the OP will be purchasing 'gray market' (from an authorized 'dealer', but out the back door). And that would be a violation of the dealers reseller agreement. And there is LOTS of case law prohibiting such sales.... including everything from high-end 'accessories' (chanel and DB purses, etc.) to high-end cosmetics (sold at Macy's, Nieman's, etc. but NOT at Walgreens) and even including beanie-baby's.

I agree that I have made a 'jump' here.... but I think it is a logical one. Maybe my original post should have been something like:
"Yes, you can purchase items for retail and try to add a profit to it, but you won't be in business long with that 'business plan'." Better??

Most eBay sellers buy products at discount stores and outlets and then sell them for a profit. My sister in law sold over a million dollars worth of high end hand bags on eBay last year. All of them were purchased from legitimate sources. Gray market and stolen items never crossed my mind!

 

[divona2000]

JustAPal00 "Most eBay sellers buy products at discount stores and outlets and then sell them for a profit. My sister in law sold over a million dollars worth of high end hand bags on eBay last year. All of them were purchased from legitimate sources.!"

I agree with JustAPal00 on this, I do this myself for extra cash. If one is good with coupons/sales/store rebates, you can get items free or almost free, occasionally, the store pays me to buy an item. I got $425 worth of stuff free last month. I resell at "Flea Markets" as an Independent Contractor.