Is it right for distributors to ask for bank info ...???
 

I'm in the process of setting up an online store. Over the past few months, I've contacted numerous distributors, and several have come back with requesting bank info on their dealer application. I mean they are asking for account numbers! Is this right? I can understand them wanting to contact the bank to ensure that I'm a legit biz. But do they need my account info? Should I just tell them no thanks, I'll find another distributor?
The problem is that certain distributors have exclusive rights from a mfg in my area, and if I don't buy from them, then ..... sol, I don't have access to that product.
I'm starting to get a bit annoyed at some of the attitudes and egos of these distributors. A lot of the policies that they send to you to sign, are almost like threats that if you don't do this, don't do that, then we will .... I thought I was the customer?
Also, any other advise on dealing with the "big tuff guy" distributor?

Getting a bit disgruntled!
Scott
spamthis at alltel.net

Re: Is it right for distributors to ask for bank info ...???
 

Hi Scott,

The main reason that information is being requested is because usually dealer accounts involve credit terms and credit limits.

Sometimes you can arrange to become a dealer by purchasing using other methods like credit cards, advance payments through PayPal, money orders etc. If credit is part of the package, that's probably your answer.

Surprisingly, if you research and search around well, there are many ways to Find the same products that we thought must be bought from one distributor. :)

And using some Creative negotiation skills and marketing plans can definitely Help in securing rights to selling all kinds of Specialty products and interesting stuff. ;)

Using the Telephone is a Great way to start the Communication process!

Phil

Re: Is it right for distributors to ask for bank info ...???
 

I repect Phil but I won't not give anyone my account numbers for the obvious reason. Bank name is enough. They can find stuff out with that. If not so what? Giving them the account number can destroy you my friend. You can't trust anyone these days, sorry that is the way it is

Re: Is it right for distributors to ask for bank info ...???
 

That's the way I feel! Can they just not call up and see if you are a customer at that bank? Or will the bank even give out that minute info? In today's world, I find that hard to believe? Who's to say their record keeping isn't so "safe" and someone hacks into their system. Now the hacker has my bank account info.

Re: Is it right for distributors to ask for bank info ...???
 

I agree with your concerns. :)

But are you asking for Credit?

If you are, it's just like dealing with other Credit type applications in everyday Consumer Life...

If not, as I explained, there are other ways of Doing it. ;)

And of course you Must research on who you're Dealing with!

Phil

Re: Is it right for distributors to ask for bank info ...???
 

How can giving bank account numbers destroy you?

I don't think anyone can withdraw money just by having your bank account number - can they?

Because all the cheques you use already have your account number printed on them...

Re: Is it right for distributors to ask for bank info ...???
 

Hi Scott

Happy New Year to you.

Distributors? Well, firstly, my understanding of the way that distributors work is that they purchase in volume at a discount and then sell to you, the retailer. They are putting their own money behind the products they sell. Agents, on the other hand, buy nothing, but earn commission from making sales of manufacturers' products.

Distributors probably need some way to sort out the chancers/scammers from the real businesses; asking for a bank account number is one way they pre-qualify reputable customers whose annual purchasing power is potentially in the thousands of dollars. If you look at this from their point of view, it's not going to take many folks who default on their obligations to turn the distribution business from profit to loss, especially if their margins are tight.

If you are really concerned about the reputation of the distributor, then why not meet up with them at a trade show and speak face to face with their sales and marketing team. (Once you have bought goods for your business, you will be on the suppliers' mailing lists and get plenty of invitations to trade shows.) That will let you assess them and gives you the opportunity to make your own decisions about them as one of your core suppliers. In addition, you might find other suppliers who carry the same products - or even better products.

Best wishes for your new online store.

Margaret