Selling Only One Brand of Items

Selling Only One Brand of Items

It’s perfectly normal to walk into a retail store of a specific company and only see their own products for sale. It would be kind of silly to sell competitor products in those cases. You would usually have to go to a general retail store to find a variety of items. What got me think is there is a local startup business I saw around here where they offered only one brand of products. While granted that brand is a big player, it made me wonder if that would be its downfall.

With the prices being the same if not more expensive than the official stores, there isn’t much of an incentive for one to just buy it from them unless it is more convenient. Profit wise too technically they have to buy a bunch of products to then resell which gives them not much room to price products cheaper. As well, some companies even prevent retailers from selling items below a specific price point.

The only real advantages I can think of is that you become a really niche business where all those people who specifically want to buy those particular brands will see you pop up and you don’t have to worry about inventory for other brands. But is it enough to actually create a profitable walk-in retail business nowadays? Curious to see how it goes.

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