Buying wholesale from China product sources is a wonderful way to make a nice income with an online business, work from home, but how do you determine if a quoted price is right price to pay?
One thing you should realize right at the front is a basic principle of buying for resale: You make your money when you buy --- not sell.
What does this mean?
Okay, let us show an example: Say you buy a flat screen TV for $ 250 from a wholesale product sources in China. You sell the TV for $ 260 So you have made a profit, right?
Error.
Why not? As it is highly unlikely that operating costs will be low enough to allow you to make a profit by selling a product for just $ 10 more than you paid for it.
Think about it. You almost certainly have a number of costs in running your business, even if it is a home business. For example, here are some typical business expenses:
Computers
Computer accessories and supplies
A bookkeeper or bookkeeping software
Stationery
Fees for selling products on Amazon or eBay
The cost of maintaining your own website if you have your own E-commerce
Advertising and marketing of your business
And more
Now, let's say that your expenses, a home business is quite low, and you only need to sell 40 flat-screen TVs a month at $ 10 over what you paid for each one to meet business expenses. Would you be in good shape then?
No
Here is the kicker --- even if you have done NOK profits to cover your home business expenseswhat are you going to live? How will you pay your bills and living expenses if all you have done is to make enough profit to break even on the cost of doing business?
Of course this will not work.
Thus, a succesvolle home business in the resale of the products you source from China, you buy low and sell high. Or at least high-NOK to actually earn a living.
Now let the order of the scenarios above and say you bought a flat screen TV for $ 200 and sold it for $ 350. Assuming that your expenses were halfway reasonable in running your business and you do not want to live without your help, this should reassure you to do a good enough profit to be successful in your home business. You've covered your business expenses, and is still $ 5600 for good, if you sell ten television a week.
This is more like it, right?
So, to make sure you come out ahead, then you need to find products at a low price to buy a high price for a decent profit margin. To find out what you can expect to get for a product, check Amazon and eBay, the average selling price of the same or similar item.
Next, find the lowest rate you can possibly get the product from a wholesale China products source and do the math to see if it will net you a good enough profit.
Think about buying wholesale from China, it is the same as buying wholesale somewhere in that price goes down as the number of products in your order goes up. In other words, you can rest assured that you get a cheaper price if you buy 100 flat-screen TVs than if you buy only 2 or 3.
This makes sense and is basically a given.
As for the smaller retailer or a person just starting out in business, it is imperative that you find a wholesaler who Chinavasion China who buy in sufficient quantity, so that could offer you good prices on smaller orders.
Chinavasion is your one-stop shop for the best wholesale prices anywhere! Check it out today and browse their selection of low prices, high quality products available for you to buy low and sell high!
When it comes to buying wholesale from China, price is an issue since buying more means cheaper. Thankfully, the global China wholesale leader Chinavasion buys in bulk itself and allows smaller sellers like you to buy in lesser quantities and still provide a great wholesale price. Come to Chinavasion or paste this link into your browser: http://www.chinavasion.com/
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