Retailers frequently asked us to sell to them at wholesale. We are happy to do this but we do need to explain the responsibilities and issues of such a relationship. The wholesale relationship will occur at one of two levels. It is up to each individual customer to decide which level he or she wishes to purchase. In either case, wholesale accounts are generally set up only for businesses who make an initial purchase of $1000-$3000 and are going to be sending at least 3-5 purchase orders a month.
Level 1 Wholesale Customers
At this level, the wholesale relationship is much like our relationship with retail customers. The retailer will write to us to ask for part numbers and prices and he or she will be quoted on a per-order basis. What this means is that based on the order size, the buyer will get a discount for a specific item. That discount will not be terribly large, but it will be appropriate for this level of relationship. This smaller discount is based on two things. First, the overhead that CAP incurs when looking up part numbers for a particular application. Second, the risk that CAP takes in providing not only a price quote but also the part number. When a retailer says “please send me a K&N filter for a 1999 Ford Ranger” and they get the wrong one, then we are fully responsible to take it back and get them the right one. This relationship requires the least effort by the retailer.
Level 2 Wholesale Customer
At this level, the retailer provides us with purchase orders for specific parts via fax. The retailer may occasionally need assistance with specific information. However, it is their responsibility to obtain catalogs, to look up the proper part number, and to understand what price they will pay. CAP will provide the level 2 retailer with a specific discount on specific product lines. This discount will be larger than that for a level 1 retailer because the overhead involved with the order is much lower. Also, if the retailer orders the part number for a 1989 Ranger when they should have gotten one for a 1999 Ranger, it is that retailer’s responsibility to fix the problem. This relationship requires the least effort by CAP.
This begs the question about catalogs. Catalogs are one of the toughest parts of this business. The way that the manufacturers guard these, you would wonder if they really wanted to sell their products at all. Therefore, the ability to acquire catalogs and keep them up-to-date is a measure of the dedication of the retailer. We will always be happy to provide our regular retailers with catalogs. We will not spend hours on the telephone gathering a bunch of catalogs and then ship them to someone who has never bought anything from us before. Sorry, it just does not make sense. If you are serious about being in this business, you will take the time to contact the manufacturers and get them to send you a catalog. That is how we had to start. Now we get catalogs we do not even want!
All retailers must fax us a current business license issued to them as an automotive products reseller. Included with this should be your name, address, telephone number, and fax number. After we have this, you can start ordering.
All purchases will be made by check or money order in advance or else via a credit card. No COD. For overseas customers making large purchases we also accept wire transfers. For individual purchases over $1000 we require a wire transfer instead of a credit card.
We ship exclusively via FedEx. If you have a FedEx account we will gladly charge your FedEx account. (Compare this to the guy that gives you stuff for an extra 2% off and then chops your head off when he ships it.) We are glad to drop-ship product to your customer–just indicate that on the purchase order. If you or your customer needs something by a certain date, it is your responsibility to let us know when you need it at the time you place your order.