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Wow how utterly predictable. I’ve noticed an increasing trend with businesses taking the approach that it’s better to ask for forgiveness than for permission when they try to "disrupt" an established industry. Sometimes it works out big. Oftentimes it fails miserably. Lots of people lose out either way.
 
JVU said:
Wow how utterly predictable. I’ve noticed an increasing trend with businesses taking the approach that it’s better to ask for forgiveness than for permission when they try to "disrupt" an established industry. Sometimes it works out big. Oftentimes it fails miserably. Lots of people lose out either way.
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The issue is, ask forgiveness from who? And why?
Wholesalers sell for their prices and that is their right. Each vendor buy from a wholesaler should be allowed to chose the profit margin they see fit.
Minuplating prices and fixed price ranges is considered antitrust in courts btw..ofcourse if proven true.
If a client of a wholesaler have a problem they should fix it by working on reducing the price or improve quality against other so they stay competitive. These 2 paths should be the only way to compete in free market..

According to the thread the wholesaler was pressured by couple of the big players.
These players are the worst that happened to this industry in my openion since they were able to inflate prices.
Same happened in conteoller industry, current controller Costs and support model would have not been what it it now if only one player in the market. More players mean competition, and more importantly means quality and customer openions will matter since there are options..

Coral industry is primed and will pop eventually, I am sure of it...all these fancy coral names and exotic descriptions will not be enough to justify such prices..

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Adam smith once explained what he called the invisible hand in free market. Which he define as the unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the the invisible hand..

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In coral industry the money is going only to the last mile chain. It's not helping the poor fishermen and collectors, its not helping the distributors. The big bucks goes only to the very last mile. Just like in coffee beans industry. Farmer keep, rosters keep getting crunched and distributors barley get by.. last mile big corps keep getting rich.
I visited Brazil coffe bean farms in the past and what I saw blew my mind. The cost of the coffee bean reaching the last mile is not even a percent of what they sell it to our local market..
The farmers laughed at me when I said diffrent coffee give diffrent taste. They said all coffee are the same, it's just last mile fancy names and exotic processes..remind you of something?

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ofzakaria said:
The issue is, ask forgiveness from who? And why?
Wholesalers sell for their prices and that is their right. Each vendor buy from a wholesaler should be allowed to chose the profit margin they see fit.
Minuplating prices and fixed price ranges is considered antitrust in courts btw..ofcourse if proven true.
If a client of a wholesaler have a problem they should fix it by working on reducing the price so they stay competitive.
According to the thread the wholesaler was pressured by couple of the big players.
These players are the worst that happened to this industry in my openion since they were able to inflate prices.
Same happened in conteoller industry, current controller Costs and support model shoild have not been what it it now if only one player in the market. More players mean competition, and more importantly means quality and customer openions will matter since there are options..

Coral industry is primed and will pop eventually, I am sure of it...all these fancy coral names and exotic descriptions will not be enough to justify such prices..

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Who? The wholesaler of course.

The guy who is running these multiple shell businesses (as far as I know he has never identified himself) should have asked his wholesaler if it was ok that he was planning to offer a direct wholesale to the public business with their products and with their labor, via his existing contract which I’m sure doesn’t allow for these sorts of shenanigans. Because he’s a retailer (not a wholesaler) trying to make money on a wholesaler scheme.

Of course this guy is later going to say it’s all the fault of evil competitors. We have no proof of that, we only see his story and what his multiple businesses offer. I wouldn’t be surprised at all if the wholesaler dumped him just for being shady and doing all this without asking if it was ok first. If they thought this was a great idea they wouldn’t have dropped him. There are good reasons wholesalers don’t sell directly to the public themselves.

This isn’t about Adam Smith or capitalism. It’s about some guy who wanted to make money by running a website that just forwards peoples orders to a wholesaler and has them function partly as a retailer without talking to them about it.
 
JVU said:
Who? The wholesaler of course.

The guy who is running these multiple shell businesses (as far as I know he has never identified himself) should have asked his wholesaler if it was ok that he was planning to offer a direct wholesale to the public business with their products and with their labor, via his existing contract which I’m sure doesn’t allow for these sorts of shenanigans. Because he’s a retailer (not a wholesaler) trying to make money on a wholesaler scheme.

Of course this guy is later going to say it’s all the fault of evil competitors. We have no proof of that, we only see his story and what his multiple businesses offer. I wouldn’t be surprised at all if the wholesaler dumped him just for being shady and doing all this without asking if it was ok first. If they thought this was a great idea they wouldn’t have dropped him. There are good reasons wholesalers don’t sell directly to the public themselves.

This isn’t about Adam Smith or capitalism. It’s about some guy who wanted to make money by running a website that just forwards peoples orders to a wholesaler and has them function partly as a retailer without talking to them about it.
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Maybe, but there is no denying how much price fixing this industry suffers from because it's not regulated. Also with all due respect you are speculating. They said what they said, now you want to believe what you believe. Both have the right to..
They clearly said they do not blame wholesaler. Why would wholseller care what are they doing? If they are a buissness, the wholesale should treat them as such..so I respectfully disagree they owe wholesaler or anyone any apologies..

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Would add to that, they did the right thing and came clean immediately. Because of that I do not think they were scanning people rather tried to open a buissness.
From the thread some users got shipments already. So they started operation.
Then once they got cut they immediately asked ppl to stop their subscription...this is not a behavior of someone who wanted to make couple hundreds dollars and bail..
That's my thinking, I have proven to be wrong in the past Thu ha ha

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From the outset, something seemed a little off with their business. I thought it seemed a bit scammy and it feels like they are leaving out parts of the story. I don’t think the full picture is being seen.

In by business I buy from several wholesalers in several industries and each is a little different. I buy wood, steel, and glass. I would say the glass industry most reflect what seems to be happening in this situation. The wholesalers “protect” their customers by not allowing accounts that aren’t glazers by trade. A general contractor can’t go to Oldcastle and just open an account. My other steel and lumber vendors don’t care as much as long as I’m buying tens of thousands of dollars of merchandise from them. None of them care what I do with the product when it leaves their facility though. I could sell it on eBay or out of the back of my truck. I could sell it for ten times what I bought it for or a dollar more and they wouldn’t care.

One of my suppliers has different tiers for what kind of customer you are. They have a full retail price for the homeowner that wants to purchase from them which is much higher because retail means low volume orders with a decent amount of customer service and return potentials. Then they offer a 40% discount for resellers; some of which have a storefront and some are online. Then I get a 60% discount as an installer.

Different wholesalers in different industries will do things very.... differently. If we are to believe the owner of Paragon then the problem is that the wholesaler is not diverse enough in the client base. Large accounts can be good in that they buy a lot of volume but they can be bad in that if they go elsewhere than they take that money with them. It sounds like they threatened to do just that. This is just a different side of the coin of capitalism. Of course the wholesaler will ditch the $100,000 account to appease the $10,000,000 account (these are fictitious numbers).
 
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