The thing that keeps getting in the way

[andrew m]

Im sure that as most of you know, once you finally find your niche its a huge weight off your shoulders. I discovered mine about week ago and immediately got to work to push forward in my road to success however, a week later I've still gotten no where and its because of one simple thing SHIPPING. After almost 2 whole days of contacting one supplier (they are oversea so the communication is quite poor at times due to time difference) we finally came to an agreement (say 50-60usd for 45-50pc) however, even with such a lower amount of money for the stock, the total to my bill was still 170usd claiming that freight shipping was $120 door to door. There would be absolutely no profit margin for me at that point (if there is it would be an extremely small percentage after everything including my selling's fees). After all that time i feel like it was wasted and i am getting no where..

 

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[BlakeIC]

are you working $3 profit?

 

[andrew m]

are you working $3 profit?

The price would have to be fairly low to compete with already existing sellers of this product. However, i was getting the product for a good price but would only be selling each one for around $5-$6 each

 

[AndrewNC]

Will the margins be there after you begin to order in larger quantities? IF so - You can take the loss (or break even on this) while you get your marketing and sales down, and then if you know how to make sales, make up for it later.

 

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[BlakeIC]

The price would have to be fairly low to compete with already existing sellers of this product. However, i was getting the product for a good price but would only be selling each one for around $5-$6 each

is that at the price of your competitors?

 

[andrew m]

is that at the price of your competitors?

I would be paying $1.10 for the product, i would get 45 for $50usd. The company wants $120usd just for freight shipping. The product would be listed for $4.50-$6 even if i sold them for the highest price ($6) i would only make a profit of around $70..and thats only if i made the buyers pay for shipping also. I didn't want to buy a huge amount the first round because i wanted to experiment with the product. Also, the more i buy the more the company will charge for shipping

 

[BlakeIC]

I would be paying $1.10 for the product, i would get 45 for $50usd. The company wants $120usd just for freight shipping. The product would be listed for $4.50-$6 even if i sold them for the highest price ($6) i would only make a profit of around $70..and thats only if i made the buyers pay for shipping also. I didn't want to buy a huge amount the first round because i wanted to experiment with the product. Also, the more i buy the more the company will charge for shipping

alright so what about this niche intrigues you?

 

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[andrew m]

alright so what about this niche intrigues you?

Its a product that i know will sell and is needed. I feel that generally when people set out to do things like this they try to do the same as everybody else (Ex. phone cases/chargers) however, this doesn't fall under the same category

 

[Damage Inc.]

It sounds like you are skeptical of the reality of the shipping costs. Don't leave yourself any doubt. Figure out the specifications on the shipment and run some quotes yourself. See where they fall, and use the information to negotiate if it makes sense to. Additionally, you can always talk to some other suppliers and get competitive quotes. AndrewNC had good advice as well. The experience of getting it done, even at low margins, may be worthwhile for you.

 

[andrew m]

It sounds like you are skeptical of the reality of the shipping costs. Don't leave yourself any doubt. Figure out the specifications on the shipment and run some quotes yourself. See where they fall, and use the information to negotiate if it makes sense to. Additionally, you can always talk to some other suppliers and get competitive quotes. AndrewNC had good advice as well. The experience of getting it done, even at low margins, may be worthwhile for you.

I had a quote on a similar product but instead of 1.10usd/pc it was close to 3usd/pc (even though i was buying 2-3x a many) the total was $250 + $20 shipping... I feel that the company i was dealing with was trying to make up for the low price by making money on the shipping

 

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[Damage Inc.]

I had a quote on a similar product but instead of 1.10usd/pc it was close to 3usd/pc (even though i was buying 2-3x a many) the total was $250 + $20 shipping... I feel that the company i was dealing with was trying to make up for the low price by making money on the shipping

That's certainly a possibility. Have you mentioned to the current supplier that you've had another supplier quote you a significantly lower shipping price, or offered them a shipping price that you are comfortable with? At some point you will have to decide what your bottom line is, i.e. what margins are acceptable for you, how much time and energy are you willing to spend sourcing and negotiating, and what is the experience worth.

 

[andrew m]

That's certainly a possibility. Have you mentioned to the current supplier that you've had another supplier quote you a significantly lower shipping price, or offered them a shipping price that you are comfortable with? At some point you will have to decide what your bottom line is, i.e. what margins are acceptable for you, how much time and energy are you willing to spend sourcing and negotiating, and what is the experience worth.

I had mentioned that to her. She said "thats unbeliveable, then dropped her price down to $100 shipping)

 

[BlakeIC]

I had a quote on a similar product but instead of 1.10usd/pc it was close to 3usd/pc (even though i was buying 2-3x a many) the total was $250 + $20 shipping... I feel that the company i was dealing with was trying to make up for the low price by making money on the shipping

how many different supplies have you contacted?

 

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[andrew m]

how many different supplies have you contacted?

i have contacted a few different suppliers with the same type of product but a little different. Still trying to find the best price/quality

 

[RazorCut]

Each company will have it's ways of achieving the price they want or need. Giving a low price up front to get you hooked then jacking up the shipment is just a sales method (underhand but that's life).

The price would have to be fairly low to compete with already existing sellers of this product.

What is the allure of this product if you are just going to be selling the same item as existing sellers? Can you not find something original to sell? Offer your niche something a little different? Go more upmarket? That way you can set the price to what you think the sector will bear.

For many years I sold products ranging from a few dollars to hundreds of dollars and beleive me it's the low cost / low profit items that are a real PITA. Too cheap to send tracked and customers wanting a product that costs next to nothing but expecting the earth.

Christmas always brings it to a head. You tell them that going for the free shipping option means it may well not arrive in time but they ignore you and don't upgrade, then it's YOUR fault that YOU personally have ruined poor Johnny's Christmas as the $5 item they purchased a week before Christmas has yet to arrive.

I would much rather sell one item at $100 than 20 items at $5. Less work, less issues, less hassle. Also usually less competition as well.

 

[andrew m]

Each company will have it's ways of achieving the price they want or need. Giving a low price up front to get you hooked then jacking up the shipment is just a sales method (underhand but that's life).



What is the allure of this product if you are just going to be selling the same item as existing sellers? Can you not find something original to sell? Offer your niche something a little different? Go more upmarket? That way you can set the price to what you think the sector will bear.

For many years I sold products ranging from a few dollars to hundreds of dollars and beleive me it's the low cost / low profit items that are a real PITA. Too cheap to send tracked and customers wanting a product that costs next to nothing but expecting the earth.

Christmas always brings it to a head. You tell them that going for the free shipping option means it may well not arrive in time but they ignore you and don't upgrade, then it's YOUR fault that YOU personally have ruined poor Johnny's Christmas as the $5 item they purchased a week before Christmas has yet to arrive.

I would much rather sell one item at $100 than 20 items at $5. Less work, less issues, less hassle. Also usually less competition as well.

i do strongly agree however, at this point in time i dont have the available funds to front such large amounts for one item. i figured start low, make my money back+some and put the profits right back in to build to bigger and better things

 

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