Velvet Rain
PARKED
- Joined
- Oct 13, 2012
- Messages
- 4
Rep Bank
$25
$25
Hi guys, currently I owned a few 2nd hand electronic stores that offers buy, sell and trade. All the stores are doing quite well and I'm looking to open another new branch that sells only NEW electronic products instead of 2nd hand products.
I've spoken to a couple of manufacturers regarding new electronic products and got their cost price list. The profit margin for new products seems to be much lower than the 2nd hand products we are selling (ie: Samsung LED TV cost price is $500 and retail price is $550. The profit margin is about $50 per piece.).
My question is: If I place a bulk order with the manufacturers at cost price of $500 and sell at retail price of $550 per piece, what should I do if the retail price drops to maybe $450 per piece? I mean if I sell at retail price of $450 with no profit, I still lose $50 per piece.
What should I do?
1) Buy in more to stocks at $450 to lower the cost by average?
2) Sell them at a loss?
3) Bundle up with other new products to clear the old stocks?
Any ideas? Please advise.
Thank you very much.
I've spoken to a couple of manufacturers regarding new electronic products and got their cost price list. The profit margin for new products seems to be much lower than the 2nd hand products we are selling (ie: Samsung LED TV cost price is $500 and retail price is $550. The profit margin is about $50 per piece.).
My question is: If I place a bulk order with the manufacturers at cost price of $500 and sell at retail price of $550 per piece, what should I do if the retail price drops to maybe $450 per piece? I mean if I sell at retail price of $450 with no profit, I still lose $50 per piece.
What should I do?
1) Buy in more to stocks at $450 to lower the cost by average?
2) Sell them at a loss?
3) Bundle up with other new products to clear the old stocks?
Any ideas? Please advise.
Thank you very much.
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