How to tell if a Co is REALLY a business?

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Posted by June on April 15, 2002 at 11:58:15:

During the past few weeks, I've been contacted by three people, asking for my wholesale list. They have a resale certificate, but that seems to be the only information they want to provide.

Each one wants to pay by check (personal account), PayPal, or Money order. When I ask for their business address, they ask me to ship to their home. None want to even consider credit.

Part of my "plan" is to give "territory rights" to my customers (with store fronts) who reorder on a regular basis. I have several customers who order regularly, and the last thing I want to do is have some hobbyist undercutting them at a local street show.

So far, only one is in the same Zip Code as a regular customer. She was not happy that I declined her order, but said she understood. One said she had a store front, but it was in her home. The other said as long as she had her resale certificate, I was not privy to any additional information.

I know of several crafters who sell their work (and the work of others) at local street shows and consignment shops. Many present themselves as a "business" but are not licensed or declare their earnings.

Over the years, I have built up a good reputation with my Business customers, and find it to my advantage to sell only to licensed businesses with a store front. I would like to maintain that reputation.

What questions may I ask to ensure I am not selling to those who are buying for personal use or resale in a consignment shop or at street shows. Is there a line I can not cross?

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