What About Rack Jobbing?

Robert at WholesaleU.com has a great post about a form of reselling that I didn’t think was this widespread.? It’s called rack jobbing, and it might be something for you to look into.? And, I couldn’t stop myself from reading it as jack robbing.? Why would I want to be a jack robber???? There! Now you’ll do it too!? Enjoy!? 🙂
Basically, rack jobbing is a relationship between a you and a retailer where you display your goods in their retail location.? The retailer only pays for products sold, and you each benefit with a little profit from each sale.
The only point I disagree with is that he says, “There is no reason for a store owner or manager to turn you down when you offer to place merchandise free of charge. There is no risk involved for him, therefore it is not hard to get you initial accounts setup.”? The next sentence warns that you’ll have to tell the retailer they’re responsible for stolen items.? It’s not the most terrible thing in the world, but it is more merchandise they have to keep from being stolen.? Depending on where you’re placing your products, they might not be used to watching out for thieves.? (ie. hair salon or other service business)? Most businesses should accept your proposition of being a rack jobber, but be prepared to put them at ease over this point.? Also, I want to mention that this policy is very important for you to stick to.? If you don’t hold the retailer responsible for stolen items, they could fudge the sales numbers and report them as stolen, thus shifting profit from your pocket to theirs.

In addition to Robert’s ideas for getting started, here are a few of my own:

  • Sunglasses at hair or nail salons
  • Car accessories at an auto body (tire gauges, air fresheners, etc…)

It was a very interesting article that I hope inspires a few readers to give it a try.? If you do, let us know how it goes.

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