The Wholesale Forums

[howdythere]

I recently made a post explaining this. If you are looking for iPhones for cheap stay away from USA, UK, Europe, & Australia. And I hate to say it but that is for most products as well. Why? - you might ask. It is simple. There are a few reasons. And below I will explain them.

1. If anyone has taken a few business classes you will remember this simple formula. Or if you are already a successful business you will know this better than anyone else.

Manufacture Product Cost PLUS (+) Overhead (which is advertising/marketing cost, shipping cost, employee payroll etc.) MINUS (-) Sell Price EQUALS (=) Profit. So lets break sown this formula for the USA, UK, and Europe. In these 4 areas of the world it cost a lot more to sell products. WHY??

A - MARKETING/ADVERTISING - Companies spend millions on getting a product the right HYPE. (making you think you need something you don’t truly need). Marketing consist of TV commercials, magazine advertisements, banners, etc. and of course my favorite test audiences. In most Asian countries very little to none is spent on marketing. Even when a company such as Apple does advertise on TV through out Asia the cost is pennies compared to the other three parts of the world. So there goes the giant overhead price of advertising in Asia.

B - Shipping Cost. Well think about how much sending one freight container cost. But don’t forget that is only the beginning. You also have to remember the semi trucks that take the products to the freight docks. Then the semi trucks that drive the products from the freight area to the ware house. Then the semi trucks that drive from the warehouse to the local warehouse (area warehouse). So that is not only expensive for the drivers and truck companies but don’t forget to thank the big oil companies for record high gas/petrol cost. In Asia if the product is manufactured here then there goes a ton of overhead. And remember truck companies and drivers are 10 times cheaper than the other 4 large areas of the world.

C - Employee Payroll. In the 4 large areas of the world employees are expensive and not cheap. You have the bottom feeders such as the store clerks, warehouse personnel, those are the cheap employees. Then you have small management(40K+ a year), upper management(80k+ a year), operation managers, district managers, regional managers, VP’s, and so on. Oh yeah and all the bonuses companies like giving out especially to top personnel. And remember the factory and the main warehouse in Asia before the product get on the freight also have employees and a few upper management personnel but no Higher ups and VP’s etc. as you have in the other 4 countries. But these employees are included I the price before it leaves the warehouse. So once again pennies in comparison to the other 4 areas of the world.

D - Everything else that is overhead. Look at Apple each store cost money to own the property and since Apple does not own the land they pay a monthly lease which is most of the time for at least 2+ years. Electricity, water, computers, paper, company Jets, (yes most companies like Apple don’t fly their top employees such as VP’s etc. on commercial airlines – that is called a perk) and even to the smallest thing such as paperclips. Now some things just seem stupid such as paper. But think of it this way Apple has to print receipts, stock reports, shipping inventories, etc. Now times that by all the offices and store and you are talking hundreds of thousands of dollars a year if not millions.

2. Now take into consideration the fluctuations of economies. Take the USA for example inflation is constantly changing the market do to a 10 Trillion dollar debt the current government has put the country in. ( before Bush and his party USA stood at a 2 trillion dollar surplus now only 8 years later the USA is 10 Trillion in debt). With inflation causing prices to rise consumers are less likely to buy luxury products constantly. So then more marketing money is thrown at that problem (making you believe you NEED something that you don’t).

3. Now take into consideration failing products that companies might have lost on. This is like if Apple or any company brings out a new product and it does not sell well and they loose money on it they have to recap that somewhere. Now this does affect the Asian market but not as much. Because most companies do not count the lost overhead as a whole but as territorial. But this all depends on the company and product.

Ok well this is becoming a class lecture that I am used to versus a thread. Lol. But by now I am sure the readers on here get the point.

So lets look at the Apple iPhone. Retail value is $600 WITHOUT a two year contract.
That is what AT&T will sell you the phone for. The reason they give you $200 off with contract is because well that is simple with a two year contract they will make that money back and a lot more. Everyone knows this fact as it applies to anything with a contract almost.

So what is the real iPhone cost. MMM I wonder. Well according to techcruch and other sources Apple just made over $200+ Million dollars on selling 700,000 iPhones. Ok so lets do some simple math.

$200,000,000 divided by 700,000 iphones sold is $285.71. Now this is PROFIT. So remember the original formula. This is profit after overhead and manufacturing cost. So the phone profits Apple $285.71 with or without a two year contract because they don’t give you that price break AT&T does. And also remember Apple is not selling the phone to AT&T for $600.00 it will be lower than that probably around $530 or $550. And that is at the Appler store realistically more around $450 or a little more.That way even selling the phone outright without contract AT&T will still make a little profit. You can ask anyone who sells phones at a retail store that the outright cost ($600 in this case) will still always be a little profitable, not as much as a contract but still profitable.

So now lets take say at the low end $50 to play around with. Now for more math. $285.71(apples profit) minus another $50(the price the store gets them for). So COst is $600 - $285 =$314. $314 MINUS(-) $50 EQUALS(=) $264. and that is around the true cost of the iPhone. So in Asia where overhead is a 1/6 of the other 4 areas the cost of the phone itself decreases dramatically. So if you want to buy say 50 iPhones where I live in Malaysia you CAN FOR SURE get them for around $285 if not a few dollars cheaper.

Even the computer I am sitting here writing this message on I got it for $350.00 less than the best retail price on the web even with rebates. And I don’t like to brag but it is one bad as computer.

But Malaysia and a price like $285 THEY MUST BE FAKE. Wrong I live in Kuala Lumpur and it is not easy selling fakes here. Malaysia unlike most of Asia has very high penalties for selling fakes. Malaysia has a higher code of Ethics it is a MUSLIM country.

So this is why soon I will be starting up my own company over here but it is not easy as a am an American. I must get a lawyer to handle everything for me. And I also plan to list on The Wholesale Forums as long as Anthony oks me. Luckily for me unlike most tourist I have lived here for over 2 years and have some great Malay friends that shop with me or for me. Because ALWAYS REMEMBER in Asia there is a locals price and a foreigner price. Anyone who visits Asia will not argue with me on this. A pair of jeans that cost a foreigner $30 will cost a Malay about $15-$20. You got to love that. And that applies to single purchases to wholesale. Remember they see foreigners as a dollar sign and that is it. They believe we all have money. ( the great fake dream of First world countries.)

Thanks for reading if you have any questions on the above information feel free to write back or private message me. I will gladly answer any questions you might have.

[D M]

Iphones for $270, Is a scam?

Originally Posted by howdythere

Over here you can get iPhones for around $280 But I am not saying the ones over here did not fall off the back of a truck but still they are REAL and are cheap.

I certainly won't be buying 1!

[canada]

The iPhones will be counterfeit,news article on the clone iPhones at

http://www.iht.com/articles/2007/09/...erg/sxb412.php

Scott

[howdythere]

Here is a article about fake iPhones in the UK

http://www.netnames.com/platinum/Pre...head_of_launch

and yet here is another

http://www.vnunet.com/vnunet/news/22...s-ahead-launch

Once again there is FAKES ALL OVER THE WORLD.

First off my neighbor just bought one and loves braggin about it to me because he knows I want one. If you seriously doubt me then fly over here at you convience and I will show you. I will ask for a small finders fee of course. But you can pay me that on our way to the store I know of. Wow you can even register the damn thing. But they must be fake because Apple will always let you register fake products. RIGHT??

You know I asked Anthony about another site that discredits some of the users on this one and he told me use it and see for myself and now I have a SUPER MODERATOR telling me they are fake without any proof.

I am at least willing to even prove it to you. WOW that is all I can say. WOW

A SUPER MODERATOR who resides in Canada is telling me what is fake and not in my own back yard. LOL

Come on wake up do you think these iPhones really cost Apple that much money to make. Look at the numbers yourself. AND REMEMBER I AM IN MALAYSIA.

MALAYSIA unlike the rest of greater Asia DOES NOT tolerate fakes being sold. It is a very serious crime. But remember Malaysia is also a MUSLIM country so they have a higher set of rules you must play by do to the country's ethics.

I am not from Canada so I would not dare tell you what is fake or not. Like I said above you don't believe me fly over here. I have off every Friday through Sunday from school. Plus you can also sight see.

Did you know that if you go to Thailand you can buy gold, silver and a few precious stones for cheap as hell. Even cheaper than you can buy them from a Thai company online. But I guess that is probally fake as well. Because it is around half the cost. lol

I apologize now if this comes of a bit rude but that is not my goal at all. I just don't like being called a liar, Especially from someone half way around the world from me.


And to D M I never said I was selling these. And remember Apple will let you register it so most likely they did not fall off a truck unless Apple pushed them off. lol

[howdythere]

I was just trying to show users how the iPhone is cheap in Malaysia around $300 because a lot of members were claiming that $270 is definitely fraud. Which in most countries I will agree. Especially through out the USA, UK, Europe, and Australia. Noone in these 4 ares can sell at these prices because there is more overhead in those countries.

Mod Edit: Removed - Advertisers Account Required.

[pablow123]

Originally Posted by howdythere

I recently made a post explaining this. If you are looking for iPhones for cheap stay away from USA, UK, Europe, & Australia. And I hate to say it but that is for most products as well. Why? - you might ask. It is simple. There are a few reasons. And below I will explain them.

1. If anyone has taken a few business classes you will remember this simple formula. Or if you are already a successful business you will know this better than anyone else.

Manufacture Product Cost PLUS (+) Overhead (which is advertising/marketing cost, shipping cost, employee payroll etc.) MINUS (-) Sell Price EQUALS (=) Profit. So lets break sown this formula for the USA, UK, and Europe. In these 4 areas of the world it cost a lot more to sell products. WHY??

A - MARKETING/ADVERTISING - Companies spend millions on getting a product the right HYPE. (making you think you need something you don’t truly need). Marketing consist of TV commercials, magazine advertisements, banners, etc. and of course my favorite test audiences. In most Asian countries very little to none is spent on marketing. Even when a company such as Apple does advertise on TV through out Asia the cost is pennies compared to the other three parts of the world. So there goes the giant overhead price of advertising in Asia.

B - Shipping Cost. Well think about how much sending one freight container cost. But don’t forget that is only the beginning. You also have to remember the semi trucks that take the products to the freight docks. Then the semi trucks that drive the products from the freight area to the ware house. Then the semi trucks that drive from the warehouse to the local warehouse (area warehouse). So that is not only expensive for the drivers and truck companies but don’t forget to thank the big oil companies for record high gas/petrol cost. In Asia if the product is manufactured here then there goes a ton of overhead. And remember truck companies and drivers are 10 times cheaper than the other 4 large areas of the world.

C - Employee Payroll. In the 4 large areas of the world employees are expensive and not cheap. You have the bottom feeders such as the store clerks, warehouse personnel, those are the cheap employees. Then you have small management(40K+ a year), upper management(80k+ a year), operation managers, district managers, regional managers, VP’s, and so on. Oh yeah and all the bonuses companies like giving out especially to top personnel. And remember the factory and the main warehouse in Asia before the product get on the freight also have employees and a few upper management personnel but no Higher ups and VP’s etc. as you have in the other 4 countries. But these employees are included I the price before it leaves the warehouse. So once again pennies in comparison to the other 4 areas of the world.

D - Everything else that is overhead. Look at Apple each store cost money to own the property and since Apple does not own the land they pay a monthly lease which is most of the time for at least 2+ years. Electricity, water, computers, paper, company Jets, (yes most companies like Apple don’t fly their top employees such as VP’s etc. on commercial airlines – that is called a perk) and even to the smallest thing such as paperclips. Now some things just seem stupid such as paper. But think of it this way Apple has to print receipts, stock reports, shipping inventories, etc. Now times that by all the offices and store and you are talking hundreds of thousands of dollars a year if not millions.

2. Now take into consideration the fluctuations of economies. Take the USA for example inflation is constantly changing the market do to a 10 Trillion dollar debt the current government has put the country in. ( before Bush and his party USA stood at a 2 trillion dollar surplus now only 8 years later the USA is 10 Trillion in debt). With inflation causing prices to rise consumers are less likely to buy luxury products constantly. So then more marketing money is thrown at that problem (making you believe you NEED something that you don’t).

3. Now take into consideration failing products that companies might have lost on. This is like if Apple or any company brings out a new product and it does not sell well and they loose money on it they have to recap that somewhere. Now this does affect the Asian market but not as much. Because most companies do not count the lost overhead as a whole but as territorial. But this all depends on the company and product.

Ok well this is becoming a class lecture that I am used to versus a thread. Lol. But by now I am sure the readers on here get the point.

So lets look at the Apple iPhone. Retail value is $600 WITHOUT a two year contract.
That is what AT&T will sell you the phone for. The reason they give you $200 off with contract is because well that is simple with a two year contract they will make that money back and a lot more. Everyone knows this fact as it applies to anything with a contract almost.

So what is the real iPhone cost. MMM I wonder. Well according to techcruch and other sources Apple just made over $200+ Million dollars on selling 700,000 iPhones. Ok so lets do some simple math.

$200,000,000 divided by 700,000 iphones sold is $285.71. Now this is PROFIT. So remember the original formula. This is profit after overhead and manufacturing cost. So the phone profits Apple $285.71 with or without a two year contract because they don’t give you that price break AT&T does. And also remember Apple is not selling the phone to AT&T for $600.00 it will be lower than that probably around $530 or $550. And that is at the Appler store realistically more around $450 or a little more.That way even selling the phone outright without contract AT&T will still make a little profit. You can ask anyone who sells phones at a retail store that the outright cost ($600 in this case) will still always be a little profitable, not as much as a contract but still profitable.

So now lets take say at the low end $50 to play around with. Now for more math. $285.71(apples profit) minus another $50(the price the store gets them for). So COst is $600 - $285 =$314. $314 MINUS(-) $50 EQUALS(=) $264. and that is around the true cost of the iPhone. So in Asia where overhead is a 1/6 of the other 4 areas the cost of the phone itself decreases dramatically. So if you want to buy say 50 iPhones where I live in Malaysia you CAN FOR SURE get them for around $285 if not a few dollars cheaper.

Even the computer I am sitting here writing this message on I got it for $350.00 less than the best retail price on the web even with rebates. And I don’t like to brag but it is one bad as computer.

But Malaysia and a price like $285 THEY MUST BE FAKE. Wrong I live in Kuala Lumpur and it is not easy selling fakes here. Malaysia unlike most of Asia has very high penalties for selling fakes. Malaysia has a higher code of Ethics it is a MUSLIM country.

So this is why soon I will be starting up my own company over here but it is not easy as a am an American. I must get a lawyer to handle everything for me. And I also plan to list on The Wholesale Forums as long as Anthony oks me. Luckily for me unlike most tourist I have lived here for over 2 years and have some great Malay friends that shop with me or for me. Because ALWAYS REMEMBER in Asia there is a locals price and a foreigner price. Anyone who visits Asia will not argue with me on this. A pair of jeans that cost a foreigner $30 will cost a Malay about $15-$20. You got to love that. And that applies to single purchases to wholesale. Remember they see foreigners as a dollar sign and that is it. They believe we all have money. ( the great fake dream of First world countries.)

Thanks for reading if you have any questions on the above information feel free to write back or private message me. I will gladly answer any questions you might have.

Best post i've seen in years well done mate.

[redsky]

MALAYSIA unlike the rest of greater Asia DOES NOT tolerate fakes being sold. It is a very serious crime. But remember Malaysia is also a MUSLIM country so they have a higher set of rules you must play by do to the country's ethics.

That's a load of rubbish.Have you not had a stroll round the streets of KL recently.Fake dvd'd,Lv bags usual crap being peddled by the hawkers that is rife in neighbouring thailand.I am not after your I phones and I have no idea of the wholesale price but I will be keeping an eye on this post.Will you prove us doubters wrong?

[Pete]

You're not related to Northy, are you?
.

[howdythere]

Yeah I walk through the streets of KL all the time. I live here. You doubt me I can prove it easy. Would you like a pic of me holding up a current news paper, like today's date. Tomorrows, the next 2 years I will be here, just let me know. I also know that in December cops made more arrest for fakes than ever. When is the last time you were here, I take it it had to be over 2 years ago because that is how long I've been here and not to much has changed.

Fake DVD's yeah did you not read my posts I said they are abundent. Hawkers - yeah they operate but not on a mass level here, more like scattered ants on a football field - and I never said I deal with them considering they only sell little toys, dvd's and bullsh*t for tourist. And to say its like thailand I asume you have never been to thailand. that has to be one of the funniest things i have read in my life. lol lol lol i cant stop laughing.


Lets see Thailand you have MBK (my favorite for 100 baht band shirts and bilabong, etc), Patpong, Nana, Platinum, The 7 Floor Electronic Super Mall (excellent deals on electronics as long as your thai) next to Platinum - and don't forget chatchuchak and the night market(which every thai knows is a spot to rip off ferrangs lol) I go to thailand very often and have many friends who live there, mainly near Rama IV and Thonglor. Good Times in thailand

And let's see Malaysia - Chinatown (plenty of clothing fakes, dvd's, and bullsh*t - not really electronics) Loyat Plaza (a good electronic mall for the malays but they love to rip off tourist because it is on Bukit Bintang) Utama Mall (bunch of junk and clothing) Petronas towers (ritzy shoppers). And these places are checked frequently by the law enforcement to make sure no illegal trading is going on.

So don't compare Malaysia to Thailand because when you do that I can tell either you have not been to both or you just don't know what you are talking about. I am not trying to sound rude but that was just a stupid and very funny comment. lol

pablow123 - thanks but you should really be thanking my professors as they have drilled this into my head. But that is why I am studying business over here (International Business Degree) But I do thank you for the comment, it is always nice to know that people appreciate the time we spend on informing others.

Pete - if the comment about Northy is for me, well i don't know anyone named that so i don't think I could be related to him. but i did see Northyimports ripped someone off and in that case well you really don't know me and that is a very sad question. (it is funny however - lol) I, myself am a spiritual person who holds true to my karma and my chakras so I personally would not associate with a person like that as they would most likely affect my conscious in a negative way. and I respect the dharma of natural law too much to befriend a fellow man or woman.

[redsky]

Originally Posted by howdythere

Yeah I walk through the streets of KL all the time. I live here. You doubt me I can prove it easy. Would you like a pic of me holding up a current news paper, like today's date. Tomorrows, the next 2 years I will be here, just let me know. I also know that in December cops made more arrest for fakes than ever. When is the last time you were here, I take it it had to be over 2 years ago because that is how long I've been here and not to much has changed.

Fake DVD's yeah did you not read my posts I said they are abundent. Hawkers - yeah they operate but not on a mass level here, more like scattered ants on a football field - and I never said I deal with them considering they only sell little toys, dvd's and bullsh*t for tourist. And to say its like thailand I asume you have never been to thailand. that has to be one of the funniest things i have read in my life. lol lol lol i cant stop laughing.


Lets see Thailand you have MBK (my favorite for 100 baht band shirts and bilabong, etc), Patpong, Nana, Platinum, The 7 Floor Electronic Super Mall (excellent deals on electronics as long as your thai) next to Platinum - and don't forget chatchuchak and the night market(which every thai knows is a spot to rip off ferrangs lol) I go to thailand very often and have many friends who live there, mainly near Rama IV and Thonglor. Good Times in thailand

And let's see Malaysia - Chinatown (plenty of clothing fakes, dvd's, and bullsh*t - not really electronics) Loyat Plaza (a good electronic mall for the malays but they love to rip off tourist because it is on Bukit Bintang) Utama Mall (bunch of junk and clothing) Petronas towers (ritzy shoppers). And these places are checked frequently by the law enforcement to make sure no illegal trading is going on.

So don't compare Malaysia to Thailand because when you do that I can tell either you have not been to both or you just don't know what you are talking about. I am not trying to sound rude but that was just a stupid and very funny comment. lol

pablow123 - thanks but you should really be thanking my professors as they have drilled this into my head. But that is why I am studying business over here (International Business Degree) But I do thank you for the comment, it is always nice to know that people appreciate the time we spend on informing others.

Pete - if the comment about Northy is for me, well i don't know anyone named that so i don't think I could be related to him. but i did see Northyimports ripped someone off and in that case well you really don't know me and that is a very sad question. (it is funny however - lol) I, myself am a spiritual person who holds true to my karma and my chakras so I personally would not associate with a person like that as they would most likely affect my conscious in a negative way. and I respect the dharma of natural law too much to befriend a fellow man or woman.

If you read what i said it was along the lines of fakes being peddled by hawkers that is rife in neighbouring Thailand.I was not comparing countrys.You really seem to me like you have a problem with tourists/business people in your country.Last in Kl for one sad day(day after united lost cup final) last may.Cannot recall actual date as my passport is not handy.I can take a picture of the visa stamp if you dont believe me though !On your tour of bangkok you forget to mention lumpini,now that is where ferangs(some people find this word offensive)and even malays get ripped off.Your statement about how Johnny foreigner will always get charged the higher price is not always so.Like anywhere in the world a good honest wholesaler will play on a level playing field otherwise it leaves a bad taste.I have sent locals into wholesalers to get prices and gone in myself the following day.Guess who got the best price?
Anyway looking forward to you becoming a registered seller it would be good for the guys who are interested in buying Iphones.Like I said proove me us wrong.