• Distributor Alert: Potential Wholesaler Scam

    Date: 2010.05.11 | Category: Uncategorized | Tags: ,

    Planet Antares would like to issue a warning to its distributors to be on the look out for the following scam practiced at some wholesales. It has been brought to our attention that some of our distributors have found that some unscrupulous wholesalers are trying to steer them into purchasing “the hottest new product” only to find out it is not a seller at all.

    We all want to be on the cutting edge of what’s new and what’s the next hot product. Don’t be fooled by the hype a wholesaler can put on certain unproven products. You are not a guinea pig; you are a savvy businessperson. Let the market be your guide. Before you take the dive on a new fad product make sure it will sell.

    Here is a simple tip to aid you in determining the marketability of the product. Get to know a few clerks at your local convenience stores and ask them what people are buying. What is your best seller for women over 30? What are blue collar workings spending the most on? They will be a great barometer for determining what new products are worth your time investing in. The last thing you want is to invest in inventory that just will not sell. Five or ten minutes in a Circle K or 7-11 is time well spent and will pay you back in multiples with the money you will save on avoiding bad products as well as spotting new trends before your competitors have a chance.

    Here is a description from a distributor of what he experienced.

    “I cannot believe I fell for this one. Every week I noticed a nice big display for a new energy drink at the front of my wholesaler. You know fancy colors and signs. Looks neat. I finally asked the owner what is that all about. He told me it is the next mega hit. It is a winner that can’t miss. He got a great deal being one of the first wholesalers and was able to sell them to me significantly under what Red Bull and Monster are going for. With out really thinking about it I stocked up. He told me I needed to because it was going fast and he is on back order so what he has is all his got. I got enough for two months. I wanted to be ready for the pending shortage. We the only shortage was sales. This stuff was not moving. I eventually tasted one and man it sucked. I think all energy drinks take funny but this was bad. No one recognized it and they were not willing to pay $3 bucks to find out. The few who did I should have offered them a refund out of pride. It cost me hundreds of dollars to learn this lesson. Let me offer another lesson. I took them to the Local Boys and Girls Club and donated the remaining supply. I took it as a deduction so I can at least save some face on this dark day.  By the way the display is still up and there are still a ton of cases. Looks like I was not the only one burned my wholesaler is stuck with a bigger loss them me. No I did not tell him to take the write off, I still have not full forgiven him.”

    D. J.

    Pennsylvania

    Please note that these practices are not common. It is our experience that the vast majority of vending wholesalers are honest and mistakes can happen. However, if you spot a pattern of issues please consider finding an alternate supplier.

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