Quote:
Originally Posted by daveff
I agree with you, wholesale = more proffit .
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As I posted in another thread similar to this -
That is not necessarily true.
If I can sit at home and sell $ 10,000 per month at a 20% profit and make $ 2,000 and you are stocking your goods and making $ 3,000 per month on the same amount of sales who is better off?
I have nothing invested.
In order to maintain $ 10,000 sales at 30% gross you will need to have $ 7000 at cost each month, with an average inventory of 4 turns a year that is $ 21,000 tied up, plus rent and shelving, etc. So who is better off?
Out of your $ 3,000 you have to pay shipping, storage, customs fees, etc. And you have $ 20 or so constantly tied up. Where I have $2,000 free and clear and all of my cash in my pocket.
You also have to deal with slow moving goods, or items you bought that just don't sell at all. I have no dead or slow inventory to worry about.