Margins

[Ing]

Hi folks, I have question.
Looking for tradable goods.
Germany is a low price area. So when I look for goods to handle with, I often see a negative margin. That means, someone gets it cheaper, one dealer less is in.
Dropshipping shows the called prizes being higher than Amazons. And I m not the only one seeing that .

Very often you have10- 20 % margin.

Here is the question: is that a common issue all over the world? Or are margins in general higher, when B2b in one country without importing.


Next: importing from china can bring big margins as Ive heard and read.
Is that because the chinese workers are scammed or is there really such a big gradient in costs?

And no, I will not ask for what goods have high margins!

 

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[Kid]

Next: importing from china can bring big margins as Ive heard and read.
Is that because the chinese workers are scammed or is there really such a big gradient in costs?

Workers are probably paid very small wage. Additionally China gov do some subsidies to certain products that makes them cheaper. But i would point the workers wage as main factor.

 

[Walter Hay]

Next: importing from china can bring big margins as Ive heard and read.
Is that because the chinese workers are scammed or is there really such a big gradient in costs?

First let me say that the vast majority of workers in China are happy with their lot. Their pay is very low compared to what Westerners get, but with a very low cost of living that is not a problem.

In addition, in many large manufacturing enterprises they get very good fringe benefits, such as free child care and free medical. The government has imposed rules that have improved workers' conditions, and the old sweatshop days have largely ended.

MARGINS. I have posted on this subject here: MARGINS in the General Entrepreneurship forum.

It shows how that margins can be insanely high if you know how to go about negotiating, The biggest factor is that although a price quoted might seem very low, it usually only seems so good because importers are comparing with the retail prices they are accustomed to.

Walter

 

[Ing]

Thanks for the information, here especially about the workers.

 

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