Break even deals would not happen. Call Frank a bad businessman all you want, but NO businessman is going to make a deal that would have him using his resources for no profit. These types of deals are a DEFINATE possiblilty due to the difficulty of entering the Chinease Marketplace, and an increasing number of companies wanting to do just that.
Under the consignment then the vendor has more power of the price control because he wants the product to move fast? so a fast nickel is better than a slow dime in the vendors eye. Frank may end up with break even expense? consignment no good!