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Old 08-04-2014, 03:13 PM
 
3,770 posts, read 5,822,516 times
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Hi, I am wanting to create 2 separate companies with similar products. They wouldn't directly compete, because one would be marketed wholesale to retailer and the other direct to consumer via internet each with their own product designs.

Here's an example: I make belt buckles. I have business A where I manufacture and sell to stores. I also have company B, where I manufacture and sell online direct to consumers. They are all belt buckles, but each company has their own designs. There are no overlapping exact same products.

Anyway, I am just one person for now. I want to do both businesses. For branding purposes, I don't want to look like I am the same person doing 2 businesses. So I will have 2 different websites, business names, mailing addresses and phone numbers. Does anyone see a problem with this?
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Old 08-04-2014, 03:38 PM
 
Location: Keosauqua, Iowa
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I don't see any issues for this sort of product. Some industries would require disclosure of this sort of activity but I don't think the belt buckle world is one of them.
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Old 08-04-2014, 03:39 PM
 
Location: In a chartreuse microbus
3,866 posts, read 5,574,501 times
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Yes. You'll be very, very busy!
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Old 08-04-2014, 04:04 PM
 
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Quote:
Originally Posted by sirron View Post
Yes. You'll be very, very busy!
lol....it does sound like twice the work. it wouldn't be for the long term. building up each business to be full time would take a while, could be months or years. so it would be nice to not put all my eggs in one basket and have possible 2 income streams.
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Old 08-05-2014, 01:48 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
33,116 posts, read 60,126,875 times
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I had a business for 17 years, and sold both wholesale and retail. While everything was custom made there was definitely overlap and in some cases I sold to a wholesale customer and directly to their retail customer without any problem. If it concerns you have one company with two DBA names, but many companies do both wholesale and retail successfully. In the end I found the wholesale business to be far more lucrative and far less work/hassle, and no longer do retail.
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Old 08-09-2014, 10:57 AM
 
3,770 posts, read 5,822,516 times
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Quote:
Originally Posted by Hemlock140 View Post
I had a business for 17 years, and sold both wholesale and retail. While everything was custom made there was definitely overlap and in some cases I sold to a wholesale customer and directly to their retail customer without any problem. If it concerns you have one company with two DBA names, but many companies do both wholesale and retail successfully. In the end I found the wholesale business to be far more lucrative and far less work/hassle, and no longer do retail.

Thanks, I favor the wholesale option too, for the same reasons. I would do retail, until wholesale built up in volume, because early on I'd have the extra time and need the retail income.
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Old 08-15-2014, 06:51 AM
 
Location: Florida
4,103 posts, read 4,594,200 times
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I think in some business niches your retail customers will want you to sign an agreement that you wont sell your items retail. I cant think of any examples but Ive certainly heard of it. I think the reasoning is the retail customers don't want to be competing with you, their supplier.

Edit: I think guns are this way. If you contact Ruger or Winchester to try to buy directly from them they'll send you a generic "Were sorry, but due to the terms with our distributors you must purchase these items retail from one of our distributors. Thank you and blah blah.
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