Manufacturer selling on the internet for less than my wholesale price. Is there a law to protect me ?

I just did a random google search and found out that my private label supplier is now selling same products on the internet to the public for less than MY cost. I have been buying from them for at least 15 years and while I dread to deal with their customer service reps their products are actually very good. But now I will look like a rip off artist if I charge $30 for same moisturizer that sells for $12.95 on the internet. My cost is $11.50 so there is no way I can compete. Is there any recourse other than to stop buying from them? There has to be a code of ethics somewhere.

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Permalink Reply by Nondy Llewellyn on June 4, 2011 at 10:10am

That is why whomever buys Private Label NEEDS to create their own label, and change the names of the products they are using, so it is different than the PL name.

BTW, we all would appreciate knowing the name of this PL company. No one adheres to a code of ethics (from a corporation standpoint) when $$ are involved. Seems it's a dog-eat-dog world out there right now.

Thanks,

Nondy

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Permalink Reply by Cora Ariella on June 4, 2011 at 8:49pm

Nondy...if only it were that easy... To change the name, let's say from "Terrific Moisturizer" to "Wonderful Moisturizer" minimum order is 500 units. I do apply my own labels to the products and so far I have not been confronted by a client that scooped it out from the internet for less than my cost. But I know that day will come. I will call this PL company on Monday and ask for an explanation and then I'll get back to you with the whole story. BTW, this happened to me with a professional brand, Robanda, that I was shocked to find it on the shelves at Marshalls. To add insult to injury, not only the price tag was $5.99 but it said "compare at $12.99".... My cost for same product Oxygen boost Night therapy was $24 !!!! and my retail was $50. Robanda CEO explained to me that when they changed packaging a wholesaler bought the old inventory and resold it to Marshalls, TGMax, etc..

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Permalink Reply by Mary Turner on June 5, 2011 at 2:17pm

Please share the name of the PL company ! I do mostly PL and would be very unhappy to find this out !!

Thanks,
Mary

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Permalink Reply by Cora Ariella on June 5, 2011 at 7:32pm

Mary, just google the name of one of your products and you'll see who else is selling it and for how much...it's that easy. By the way, I've asked you on two different occasions who do you use for your PL retail but you never answered. It's your right to keep that private, although I really don't see what the big deal is.. I have found in my almost 20 year experience, that the more I share with fellow estys