Expensive or cheap purchase.?? - The Wholesale Forums
 
 
 
Home  |  Register  |  Members  |  Calendar
Welcome to The Wholesale Forums! All times are GMT +1. The time now is 08:02 PM.

Old 18-09-2008, 10:25 AM   #1 (permalink)
kwidsin
Community Advertiser
 
kwidsin is offline

Join Date: Sep 2008
Location: uk
Posts: 142
iTrader: (3)
Thanks: 0
Thanked: 0 Times in 0 Posts

Default Expensive or cheap purchase.??

Didn't really know how to title this question, so bear with me...lol

I really don't know what the profit margin you serious traders class as good, but I'd like to know what sort of expense you would consider excessive to gain a certain profit. I'm not explaining this very well, so I'll give you an idea of what I mean.

I purchased 10 laptops @£250 a unit which obviously equates to £2500, which for a small amount of units seems a big outlay, and i'm only just starting, I sold them for £280 a unit, so initially approx £300 profit.

Now sitting here thinking about it, I'm just wondering if this was a wise action. I'm sure the same profit could be made with smaller goods at a fraction of the capital price, without laying out such a large amount of cash for such a small amount of units.

Would you tie up money in expensive goods for that sort of return, or would you be looking to make the same if not more profit than that, on a higher quantity cheaper product with less initial outlay. I hope that makes sense??, but I know what I'm trying to say....lol


thanks

kwidsin.
Reply With Quote
Old 18-09-2008, 10:27 AM   #2 (permalink)
Jazzy123
Community Advertiser
 
Jazzy123's Avatar
Jazzy123 is offline

Join Date: May 2008
Location: UK
Posts: 856
iTrader: (17)
Thanks: 4
Thanked: 10 Times in 10 Posts

Default

Prfit margin wise that seems average/ok to start

depends on the turnover of te stock and if it depreciates
__________________
Website: www.premier-products.co.uk
Contact: jazzy123twf@googlemail.com
Sandi Thom New Album £1
Reply With Quote
Old 18-09-2008, 10:31 AM   #3 (permalink)
DesignerAllsortz
Community Advertiser
 
DesignerAllsortz's Avatar
DesignerAllsortz is offline

Join Date: May 2008
Location: UK.
Posts: 988
iTrader: (4)
Thanks: 53
Thanked: 40 Times in 39 Posts

Default

If I was you I would go with cheaper products your spending £250 on a laptop and making £30 profit I make that selling single units of sunglasses so same profit cheaper item to buy and you could buy more as they are cheaper than the laptops.
__________________
Back from holiday Designer sunglasses business is still going any info you need send us and email on DesignerAllsortz@aol.com thanks.
Reply With Quote
Old 18-09-2008, 10:35 AM   #4 (permalink)
jayjrc
Community Member
 
jayjrc is offline

Join Date: Jul 2008
Location: united kingdom
Posts: 449
iTrader: (2)
Thanks: 4
Thanked: 13 Times in 13 Posts

Default

i make £22 quid profit for a 5 quid item, maybe look at resourcing or trying something else, but if it is the market you want to stay in maybe this is how it will go from now on?
Reply With Quote
Old 18-09-2008, 10:37 AM   #5 (permalink)
D M
Community Member
 
D M is online now

Join Date: Jun 2007
Location: UK
Posts: 1,311
iTrader: (0)
Thanks: 3
Thanked: 26 Times in 24 Posts

Default

What you're referring to is return on investment.

£300 / £2500 = 12%

That's a slim margin. A faulty laptop or a chargeback (if you are accepting credit cards) is going to reduce that quite considerably.
Reply With Quote
Old 18-09-2008, 10:42 AM   #6 (permalink)
geosamm
Community Member
 
geosamm's Avatar
geosamm is offline

Join Date: Jun 2008
Location: Thailand
Posts: 1,843
iTrader: (0)
Thanks: 10
Thanked: 50 Times in 41 Posts

Default

I dont know the product so cant comment of quality of mark up....
I can tell you that one of my wholesale customers had a "rule of thumb" when buying or selecting the items he purchased...
Buy at 10p... actual cost 20p... wholesale 50p.... retails for 100p
I doubt this will apply to electronics or electrical items and others
__________________
Having sex when your old is like shooting pool..... with a rope
Reply With Quote
Old 18-09-2008, 10:50 AM   #7 (permalink)
E-ASYCHOICE
Community Advertiser
 
E-ASYCHOICE's Avatar
E-ASYCHOICE is offline

Join Date: Jan 2008
Location: UK
Posts: 162
iTrader: (11)
Thanks: 1
Thanked: 8 Times in 7 Posts

Default

All depends on how quickly you are turning the stock over and how much capital the stock is taking up.

Fow example;

You have spent £2500 on 10 units to make a profit of £300
If you spent that £2500 on laptop accessories, you would prob make 1500-2000 profit but you would hold the stock longer.

If you combined the two and sold package deals the higher % mark up on the accessories would make the final profit margin alot more pleasing, you would then also increase your repeat custom because people would return to you for a new laptop case/mouse/ect instead of only returning when they need a laptop.

Dont tie all your funds up in one product and use that one big item to sell multiple small items. That is where you'll make your money.
__________________
E-ASYCHOICE
In business for profit, not just to shift boxes
Reply With Quote
Old 18-09-2008, 10:56 AM   #8 (permalink)
kwidsin
Community Advertiser
 
kwidsin is offline

Join Date: Sep 2008
Location: uk
Posts: 142
iTrader: (3)
Thanks: 0
Thanked: 0 Times in 0 Posts

Default

Thanks for the replies, much appreciated. Yeah, that was my general gut feeling......time to look elsewhere I thinks...

On some pressure washers I have, I'm selling at £57 with each unit costing me £37, so 54% profit......so I'm getting there slowly.


Some Great Information. Thank you


@jayjrc

Making £22 on a £5 item, bloody hell m8, fantastic. I would never have thought that possible, but I am an early learner

Last edited by kwidsin; 18-09-2008 at 10:58 AM..
Reply With Quote
Old 18-09-2008, 11:48 AM   #9 (permalink)
Riggerz
Community Member
 
Riggerz is offline

Join Date: Sep 2008
Location: UK
Posts: 13
iTrader: (0)
Thanks: 1
Thanked: 0 Times in 0 Posts

Default

Jayjrc, What on earth are you selling and how?????
Reply With Quote
Old 18-09-2008, 11:51 AM   #10 (permalink)
jayjrc
Community Member
 
jayjrc is offline

Join Date: Jul 2008
Location: united kingdom
Posts: 449
iTrader: (2)
Thanks: 4
Thanked: 13 Times in 13 Posts

Default

lol riggerz, i sell many things! obviously if i told you i would have to kill you! lol
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On
Forum Jump


All times are GMT +1. The time now is 08:02 PM.

Control Panel
Member Login:
Quick Navigation
Register
Forum Rules
Advertising Opportunities
Member of the Month
Top Contributors
Contact Us
Advertisement
Member of the Month
TWF - Member of the Month AwardDecember 2008
Costaconsoles
Popular Discussions
Recession, hard times?
Pound getting weaker
eBay suspensions galore?
Opening online store
Tips for new members
Useful Articles
Tips for Supplier Checking
Dealing with the Chinese
Sourcing Products Abroad
UK VAT and Import Duties
Approaching Wholesalers
Newsletters
TWF Newsletter - July 08
TWF Newsletter - June 08
TWF Newsletter - Nov 07
Archived Newsletters
Forum Guides
Leaving iTrader Feedback
Reporting a Post
Competitions
Business Article Writing 08
Fantasy Football 2008/9
Resources
The Wholesale Directory
Top  |  Profile  |  Calendar  |  Archive  |  Advertise  |  Contact
Our Network: Wholesale Forums  |  Wholesale Products and Suppliers Directory  |  Wholesale Business Blog and Resources  
Skin Designed by: vBulletinSkinz.com
Powered by vBulletin® Version 3.7.4 | Copyright © 2000 - 2008, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.2.0
Copyright © The Wholesale Forums 2004-2008, All Rights Reserved.