It’s the 13th December you know what that means! That’s right Happy Birthday to me! 🙂
Even though it’s MY birthday I’m feeling a little generous. So from me to you here’s a fun little sneak peak at an excerpt from my eCourse “Import from China Revealed: The Secret Formula to Making Millions Importing from China” which is coming out at the end of the month! Be excited, be very very excited. 🙂
The retail customer is the true pawn in the import game. If you knew just how much you were getting screwed when you walked into a retail store you’d probably stay at home. You are more than welcome to remain this person for the rest of your life but let’s see how much you want to after you hear how much the retail customer gets his proverbial behind handed to him. Consider this typical “mark-up” scenario:
- The factory in China produces say an electric piano for let’s say 100 dollars. The factory will typically add 10%.
- So now the Import-Export Agent has the piano and he’ll sell it to an importer for an additional 10%. This piano now costs 121 dollars.
- Now the importer will sell it to a wholesaler for an additional 50% at 181.50 dollars.
- Now the retailer calls the wholesaler and orders the electric piano at an additional 50% markup at a whopping 272.50 dollars.
- We are not done just yet. You see the retailer he’s got to pay his mall rents and his sales staff his accountant and bookkeeper and of course his gas water and electricity bill. And yes, he also wants to come away with some profit so he can go on his yearly vacation to Maui!
- So now little Johnnie McSmuck walls into the retail store and WHACK he’s just been hit at full recommended retail price. (maybe the shop clerk throws in a few cables so Johnnie feels like he’s got a bargain) Typically at an additional 50% and Johnnie is now 408.35 dollars out of pocket, that’s 4 times what it cost when it came out of China! Oh and Johnnie can’t claim that 408.35 dollars as a tax deduction but all the guys up the food chain sure can!!
So you see the importer is king the retail customer is the schmuck! So, I ask you again, which one do you want to be? That’s right the King, and as Mel Brooks said “It’s good to be the king!”