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Would you all do me a favor?

1548 Views 12 Replies 10 Participants Last post by  harryh
Hi everyone, Im Harry. This is my first post here. Been reading though the board for the last week. Im in a situation and could use some help from more experienced sellers. I'll keep it short. Here goes...

A few years ago I invested some money with my cousin to start a business. Long story short, my cousin did something dumb and it cost me my investment and the business never got started.

Its been dragged out long enough but Ive been talking to him about getting reimbursed since his actions ended up costing me. Without going into detail about what he did, Ill just say he owes me a little over 10k.

Here is where I could use some advice. Him and one of his other business partners were going to start a t shirt business from some t shirts they got from a tenant of theirs. The tenant faulted on his rent and got into a pretty large debt, tenant was taken to court, the court ruled he sell the merchandise to pay his debt. As a tradeoff, my cousin and his partner agreed to take the shirts as payment for what he owed.

The tenant was distributing mostly Bravado t shirts and other bands t shirts and merch. He had 10's of thousands of shirts, for the price my cousin and his partner got them, it sounded like a pretty good tradeoff.

They were going to sell the shirts themselves but things went rocky between them and they have other projects they are working on so they abandoned ship. They resold a lot of the shirts to other whoelsalers and distributors so its not like the shirts cannot be sold.

The shirts being offered to me are mostly official Led Zeppelin t shirts. Within the lot, there are some other bands such as Guns n Roses, Ramones, other punk and older rock bands. Theres also some Michael Jackson, Bullets for My Valentine, Lady Gaga, Eminem, and a few others but a very little amount. Most of it looks like licensed merch. A lot of the bulk of shirts I'd be getting are are in the top 100 selling t shirts on Amazon.

If I do accept his offer as reimbursement, I think I could sell the shirts myself. Im thinking to pen an online store and sell what I can to consumers, and maybe sell others to wholesalers and distributors. Put some on Amazon, eBay, etc. I have a little experience with e commerce but havent taken anything on of this scale. I know I would have a lot of work ahead of me if I tried to sell these shirts to recoup my initial investment from years back. But I think I could end up making much more than I initially invested back then. I know it'll probably be challenging but I think Im up for the task.

Most of the shirts sell for an avg of $20 from the research Ive done so far. At best, I could possibly sell 10,000 shirts for $20 each and make 200k. Worst case scenario I cannot sell them and end up with nothing but these lousy t shirts (maybe Ill start a 2nd t shirt business with that slogan if it fails, haha).

I guess what Im asking is if this is a fair deal and whether I should take it or not. Is there anything I should know before accepting? What would you do if you were me? My other option is continue negotiating a fair reimbursement but this offer is appealing because I can possibly triple or quadruple my initial investment. I have nowhere else to turn to for advice so any responses are greatly appreciated.

Thanks guys.
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in one short message, NO!

basically, these tees, even if they're licensed prints you could still be taken to court for copyright if the bands didn't like you selling them!

honestly, just wait for your money, get him to sell them and refund you the full money or whatever :)

just my opinion
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basically, these tees, even if they're licensed prints you could still be taken to court for copyright if the bands didn't like you selling them!
If the shirts are licensed, the band has already given permission for the production and sale of the goods. They wouldn't have much basis to sue for infringement. That's the whole point of licensing. And Bravado and BandMerch are legit licensees. There would be no risk of legal issues if the shirts came from either of those sources.
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My Bad, things are obviously different in the UK!
You could dump them off at Amazon, and let them do the fulfillment for you - you pay a premium for this, but you also don't have to touch it again. I've never done that, so I'm not advocating it, but I've looked into it and always thought it sounds like it's worth the price for them to handle everything for you.

Plus, if these shirts are already hot on Amazon - you'd be where the action is.
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My suggestion would be a strict NO NO to the offer. Try to know why they are not making the money themselves that you are planning and showing you the prospect, i am confident, you will have the underlying reason. This is not good idea, i believe, cash is cash, kind is kind. Since its your cousin you still have the hold on him and he too is making the money from dumping the stocks to large retailers or distributors; he can pay - if not today, may be tomorrow.
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If they don't sell your stuck with them, no chance of recouping the debt.
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If they don't sell your stuck with them, no chance of recouping the debt.
I agree with Mike. If you take these as fair trade for the debt your cousin owes you and they don't sell or (God forbid) can't be sold for reasons unknown where does that leave you?
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I'm sure you would have to show that you are license to sell them shirts or make them even tho there already made.

Bravado and bandmerc didn't license him to sell. The tenant was license to sell which to me he made out ok cuz he knew they couldn't sell them.

I wouldn't take the offer.
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I'm sure you would have to show that you are license to sell them shirts or make them even tho there already made.

Bravado and bandmerc didn't license him to sell. The tenant was license to sell which to me he made out ok cuz he knew they couldn't sell them.

I wouldn't take the offer.
The retailer doesn't need to be licensed. The manufacturer needs the license to create, produce and distribute the goods. In this case, Bravado and BandMerch are licensed. They can sell to any retailer who can resell the goods. Unless there is a specific restriction in the licensing agreement (which the retailer can't possibly be expected to know about), there is no real legal issue here.
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The only issue as I see it is. ..... What if the shirts don't sell.? Then you are stuck.
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1.Let your cousin sell them and pay you the cash.

2.Don't loan money to family or strangers or friends
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This issue of selling licensed shirts is a little confusing. Im going to get in touch with Bravado and just ask them. There should also be some paper trail that leads back to the license agreement, Im gonna track that down as well.

When trying to find out why they didnt sell the shirts themselves, it sounds like they never made much of an effort and were just trying to unload them. When talking to my cousin and his partner separately, they each tired to take credit for whose deal this whole t shirt thing was, which tells me they have their heads in their butts. It sounds like people problems prevented them from executing on the original idea. Some people care more about being right than they do about being happy, my cousin is that type.

I really liked that idea of selling through FBA, especially since a lot of these shirts are in the top selling band categories as it is. Ive been doing my homework like crazy the last couple days and since my cost for the shirts would be less than a dollar a piece, and I resold on Amazon at the same price others are, I stand to come out nicely. I could test FBA out by sending a little and see how they do, if they start selling quickly, then I'll unload the rest.
If they dont, I can always find another way to sell. Maybe set up shop at the local flea market (which gets pretty big on the weekends). If I hit the flea market for a few months on the weekends and sold the shirts at $5 a piece Id still come out on top. I do have some extra time on my hands as it is anyways, so its not like I would be sacrificing much to put a little more effort into this than they did.

I also have a side gig selling products to smoke shops. And while smoke shops dont sell nearly as many shirts as they used to, some still do better than others.

Im thinking about taking part cash and part shirts. Also working out some kind of agreement that if I cant sell them then we revisit the deal in 6 months. Im gonna do everything I can to make sure I have the upper hand in this deal, Im not getting screwed twice.

Definitely taking my time making this decision though. Keeping all of my options in mind and not doing anything hasty. Thank you all for the responses.
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