A Wholesaler Finds Himself in Competition With Retail Clients

Based in Miami, Source Outdoor is a five-year-old importer and wholesaler of patio and deck furniture owned by Gerald Shvartsman. From humble beginnings, in which he tried to sell his first containers of goods himself, Shvartsman, 35, has expanded his one-man startup to encompass more than 50 employees and sales in 2012 of $7 million. Having established five channels of distribution, Shvartsman found himself worrying that he might have to forgo his most profitable channel — a direct-to-consumer approach that was starting to offend his wholesale clients.