# Stocking dealer

A term used when buying plumbing supply house.

A distributor a manufacturer requires to hold agreed inventory in return for carrying the line.

The arrangement is why a supply house can promise same-day parts, and it is a commitment and not a courtesy: minimum stock, sometimes minimum purchases, sometimes a territory. It binds the buyer's working capital in a way a plain purchase agreement does not, and it usually needs the manufacturer's blessing to continue after a sale. Read every stocking agreement for its minimums and its termination notice, and ask what the house would have to buy in the first year to stay in good standing.

Part of: Buying a Plumbing Supply House (https://searchspheresource.com/guides/buying-a-plumbing-supply-house)

Source: https://searchspheresource.com/guides/buying-a-plumbing-supply-house/terms/stocking-dealer