Distributor Refusal to Deal

Hello,

My partner and I started a new dog food home delivery service. Customers may order dog food, and setup delivery online.

There is a dog food brand that we simply must sell. The dog food company referred us to a distributor here in Arizona. He is the only distributor who sells this brand of dog food in the State.

We contacted the distributor to get pricing and set-up an account to start placing orders. To my dismay, the distributor has refused to sell us the dog food because we do not have an acutual store front. He said it wouldn't be fair to his customers. Fair??? how fair is that to us? Is this discrimination?

The dog food company says there's nothing they can do because the distributor has purchased the dog food and it's his to sell.

Do we have any rights? What will we tell our customers when they want to order this dog food? We already have 5 clients who use this product and is ready to setup delivery schedule. This is very frustrating. Any advice would be greatly appreciated.

Thank you.

Unless you can show a pattern of similar behavior of the distributor's refusal to sell to others of the same race, ethnicity, religion, age or gender, I don't believe this is necessarily considered discrimination. Rather, the reverse could be argued in that lack of a storefront doesn't allow everyone equal access to your product. You could, in fact, direct your business solely to a particular market and in doing so, deny another market access to your goods. Make sense?

Have you asked the local distributor what would consititute "fair" in lieu of an actual storefront? It may be in the way you advertise, for example. It may also be that the distributor simply isn't aware of the 'power of the Internet' in your part of the country. Have you shown him/her your actual website to order online? Personally, I believe that consititutes a 'storefront,' especially in this day and age.

I think I'd ask for a written explanation as to what terms you'd be permitted to sell the product under, specifically when lacking an actual storefront. I'd insist all details be clearly disclosed up front (in writing, of course) and then decide if you can comply. If, for whatever reason, you can't get your local distributor to communicate with you, you always have the option of contacting nearby distributors from neighboring states or regions. That may add slightly to the cost of your product, but doing so allows you to continue with your plans.

It's a given, of course, that you've already researched your local city or township's requirements regarding the operation of a home-based business. Depending on your city or county, you may require a license or permit to conduct your business, again particularly when lacking a physical storefront. Just something to keep in mind, if you haven't done so already.

Good luck.