huy wholesale and sell retail
buy retail and sell ultra-retail
KK had a hole in their donurt argument.
KK is arranging a legal distributor set up for this enterprising college student... AND, just like Coors beer back in the day....
they are getting terrific advertisement for efforts to set up franchises in the areas the guy is selling them.
Can only legally stop him selling them as their brand— so— send him product and sign him up TO sell their brand... in areas where they don’t have any franchise stores to be hurt.
Whole thing might be a bright “guerrilla” marketing trick.
Better yet— get him a Schwans type truck to drive HOT KK donuts to this buyers.
Isn't that how franchises work?
That’s so sweet.
The only catch is that he has to eat all 500 donuts himself, in one sitting.
What this story is really about is the manager at the kid’s supply store that got in trouble for selling him the product.
Companies engage in this type of sales arbitrage all the time in order to unload inventory or spike sales commissions. It’s the basis of a tremendous gray market that exists across this country.
For example, P&G might run a promotion in Dallas on a certain size or flavor of Crest toothpaste, knowing full well that most of the product will be shipped across the country — or the world — by Dallas wholesalers and retailers who over-buy and resell to third parties who wouldn’t otherwise access that same product and price.
I knew a guy who was VP Sales of one of these companies who told me that he’d place hundreds of trucks at his factories at the end of each quarter in case he got word from the CEO that they needed a sales bump to make quarterly numbers. On the order, he’d ship it to clients across the country at generous prices and terms without purchase orders — just send it to them. (Henry Ford did the same thing, only on cash terms, when he needed to buy out his co-investors: he dumped product on his dealers and used them to finance his buyout).
Typical corporate b.s. This kid was just taking advantage of the donut arbitrage.