Business question

Nevbrewer

Hello, i have a simple question well hopefully. If I have a container of products, 12000 in it each are 3 euro. Lets include everything in that customs etc. I add 3 euro. 6 euro to retailer. If i sell them all i make 36000 but i have to spend that again on the next load. So breakeven. No profit no chance of growth. So the question is if i want to make decent money on import export what sort of margin or multiple should i be looking for? People on here have experience in this so i thought i might ask to see if i am wasting my time with products that can only be sold to retail for double or treble the wholesale. Is there an advisable margin/ markup. Like say you buy for 3 or whatever add 10 maybe , retailer doubles it 26 then vat maybe distributor so it will be over 30. Would that be the kind of muliple 10 times? Seems hard to find products like that.how do others generally expect to do it, thanks if any responses nev

fritzelly

If after all charges are added on and you are selling at what it costs you to import do you really need anyone to tell you what you are doing wrong?
Customs/tax/import duty is only gonna be adding on about 50% so buying for 3 and selling for 6 should be still making you money

Nevbrewer

fritzelly wrote: »

If after all charges are added on and you are selling at what it costs you to import do you really need anyone to tell you what you are doing wrong?
Customs/tax/import duty is only gonna be adding on about 50% so buying for 3 and selling for 6 should be still making you money

Thanks for the reply, its still making me money but not enough surely is it, i have to spend that again for the next load, so i should buy for 3 that includes customs etc and sell for 10 or more? The reason i ask is alot of business people say whatever you buy for multiply it by 4 and thats the price it will sell at retail. But that doesnt really work for me, i buy for 3 add 3 retailer doubles it 12 then vat so its total is15/16 or 4 times the original price. But i dont really make anything because its gone on the next load. So should i be looking at 7 or 8 or 10 times the original price.the reason i ask is i thought a garden broom might be an Idea but it wont sell for 8 or 10 times the original price. Thanks again hope i dont sound to stupid. Nev

fritzelly

You don't pay VAT on what the retailer sells it for - so confused why you mention that
If a retailer makes money on it then that is their concern not yours

If you are making 1.50 (in your example) when selling for 6 well that is a decent mark up for a wholesaler. 50% would be the target but that depends on the product/market/quantity etc
There's an old adage about its better to sell a 100 products and make 10% than sell 10 products at 50% (or something along those lines, cant find it now lol)

Alucan

You sell for the highest price you can . If something is worth 3 euro today you deciding you want more profit won't make it worth ten euro tomorrow. Buy for the lowest you can and sell for the highest. But keeping in mind that the higher the price you are selling for will probably mean less quantity of sales. And this is where nobody can give you any meaningful advice without knowing full details of the business. Price point is a balancing act between the profit per item and the amount of items you can sell at any given price

Nevbrewer

fritzelly wrote: »

You don't pay VAT on what the retailer sells it for - so confused why you mention that
If a retailer makes money on it then that is their concern not yours

If you are making 1.50 (in your example) when selling for 6 well that is a decent mark up for a wholesaler. 50% would be the target but that depends on the product/market/quantity etc
There's an old adage about its better to sell a 100 products and make 10% than sell 10 products at 50% (or something along those lines, cant find it now lol)

Okay thats interesting 50 % decent mark up, i understand the vat thing that was just the final price the retailer sells, in my example it would be 100 per cent markup i make 3 euro but i struggle to see how i will make money as a business when that 3 euro goes to pay the next product load say next year? I buy for 3 add 3 100% markup but the 3 i make i have to spend on the next product /container am i right. So how do i if you like get ahead? Am i missing something thanks again

fritzelly

That's called investing in the business to expand your business - if you are making money and investing it in to the business then it is counted as a gain not a loss.
Any initial investment should be ignored until the company is in a position to pay it back and not leave itself in a precarious situation where it does not have cash to operate.

Chat with citizens information - they have people there who can give you advice

Nevbrewer

fritzelly wrote: »

That's called investing in the business to expand your business - if you are making money and investing it in to the business then it is counted as a gain not a loss.
Any initial investment should be ignored until the company is in a position to pay it back and not leave itself in a precarious situation where it does not have cash to operate.

Chat with citizens information - they have people there who can give you advice

Okay thanks i understand now i was confusing the figures thanks again you dont want a garden broom do you?ðŸ˜

mickdw

Container 1 Arriving on your driveway means you are 36000 down due to stock purchase whether than be your cash or loan or whatever.
Container no 1 sold for 72000 means stock debt cleared and 36000 in hand profit.
Buy container no 2 with cash from hand,
Zero cash in hand remaining when container no 2 lands on driveway.
When container 2 is sold, you have 72000 clear.
You are basically doubling your money but there may be additional complications such as vat etc.
This is just to show you are actually making profit. I'm not saying this is how you would handle funds within business.
That said, buying something in those kind if quantities, I'd imagine you should be looking at greater margin. If that is not possible selling into retail outlets, is there any possibility of direct sales to public?

Nevbrewer

mickdw wrote: »

Container 1 Arriving on your driveway means you are 36000 down due to stock purchase whether than be your cash or loan or whatever.
Container no 1 sold for 72000 means stock debt cleared and 36000 in hand profit.
Buy container no 2 with cash from hand,
Zero cash in hand remaining when container no 2 lands on driveway.
When container 2 is sold, you have 72000 clear.
You are basically doubling your money but there may be additional complications such as vat etc.
That said, buying something in those kind if quantities, I'd imagine you should be looking at greater margin. If that is not possible selling into retail outlets, is there any possibility of direct sales to public?

Ah yes i understand now thanks i got my figures confused great help, when you say at those quantities why a better margin? i do have an internet website alright but its slow. Im not really considering going anywhere near those quantities it was just i was thinking maybe in a few years if it was viable.thanks again

fritzelly

To be achieving anything near 50% profit margin as a wholesaler you need to be in the realms of exclusivity
Wholesalers generally do not sell to the public because it starts to entail a whole lot more expenses/work and the job of a wholesaler is to sell to a retailer to do the work and do the mark up to cover it. (unless you are the guy making and selling the product)
Wholesalers want a quick turn around of the product they are importing, adding to that everything else starts to make for a very complicated business

Nevbrewer

fritzelly wrote: »

To be achieving anything near 50% profit margin as a wholesaler you need to be in the realms of exclusivity
Wholesalers generally do not sell to the public because it starts to entail a whole lot more expenses/work and the job of a wholesaler is to sell to a retailer to do the work and do the mark up to cover it. (unless you are the guy making and selling the product)
Wholesalers want a quick turn around of the product they are importing, adding to that everything else starts to make for a very complicated business

Okay interesting i understand the complications with retail, its good talk to people who have an idea of this stuff saves alot of wasted time, i might give as you say citizens advice a ring. Thanks again

fritzelly

CI will only give you general info but they may know someone they can put you in touch with in the same field of wholesaling

Nevbrewer

fritzelly wrote: »

CI will only give you general info but they may know someone they can put you in touch with in the same field of wholesaling

Okay i understand thanks