The Wholesale Forums

[howdythere]

i DO NOT SAYT ANY EXACT COMPANY - THESE RULES APPLY TO ALL PRODUCTS MADEIN ASIA FOR THE MOST PART. THIS WAY IT AVOIDS CONFLICT AND JUST EXPLAINS THE FACTS....

I recently made a post explaining this. If you are looking for ----- 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 ----- 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 ------ each store cost money to own the property and since ------ 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 ----- 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 ------ 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 ____ 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.


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.

[canada]

Not correct for "Name brand" goods they have there own pricing called MSRP(Manufacturers Suggested Retail Price),information at

http://en.wikipedia.org/wiki/Suggested_retail_price


We will use Apple products as a example

Use Apple`s Asia website http://www.asia.apple.com/buy/locator/ to find there Malaysia authorized retail resellers.

When you convert the Malaysia currency to US dollars using http://www.xe.com/ucc/

You will find the "retail" price in Malaysia is higher than Apple`s US retail price on there US website at

http://store.apple.com/1-800-MY-APPL...cts/AppleStore

You can buy "unbranded" goods from Asia at low prices,but not name brand (trademark) products.

Scott

[howdythere]

So if you can only buy at retail price - HOW DOES WHOLESALE EXIST?


I know what MSRP is. But are you saying you cannot get prices below MSRP, does that not go against the idea of wholesale and make this forum POINTLESS??


I started this up to inform and already back to the Apple subject. Here we go again.


Yes you can get 100% Authentic deals in Malaysia just like in China, Hong Kong (PRC), or elsewhere.


Malaysia unlike other Asian Countries is Muslim and have strict policies on FAKES, except for in China town which is mostly clothing and dvds. Ask anyone who has travelled here or lives here. Thanks

[canada]

To source "name brand" products you have to deal with the Head Corporate Office or there authorized distributors,otherwise you would be buying from a reseller(middlemen).

In Asia the majority of "authorized distributors" are under exclusive contract to sell direct to retail they do not export outside of there country.

Not every product is available at wholesale,Apple products are sold to authorized retail resellers.You can not buy from there authorized wholesale distributors unless you are authorized reseller of Apple products.

There`s no problem sourcing unbranded goods(no trademark)for wholesale.Name Brand goods have a completely different distribution network for wholesale.

Hope this post helps!

Scott

[redsky]

Malaysia unlike other Asian Countries is Muslim and have strict policies on FAKES, except for in China town which is mostly clothing and dvds. Ask anyone who has travelled here or lives here. Thanks[/quote]

You keep stressing a religion why?Indosnesia is a muslim country in south east east asia which is awash with fakes and scammers.Philipines and thailand(minoritys) also.Why has someone with so much karma got to keep bringing religion into it.Personally hope you dont get banned from twf as you can maybe learn a few things and i am sure in time you will be able to offer good advise about the region you live in.Greed has no boudarys limited to a religion.Good luck.

[Pete]

Howdy,

Possibly you could convey to us your credentials for lecturing in Economics 101?
.

[D M]

His business credentials are that he insists to go to college despite being able to get the Iphone for half price. He'd rather read about buinessmen than be one.

[howdythere]

You keep stressing a religion why?Indosnesia is a muslim country in south east east asia which is awash with fakes and scammers.Philipines and thailand(minoritys) also.Why has someone with so much karma got to keep bringing religion into it.Personally hope you dont get banned from twf as you can maybe learn a few things and i am sure in time you will be able to offer good advise about the region you live in.Greed has no boudarys limited to a religion.Good luck.

redsky - I never claimed to have so much karma and RELIGION is the corruption of karma and inner consciousness. And as far as comparing Malaysia to Indonesia Muslims is like saying the US and UK are the same becasue they are both Christian nations. No offense, but that is really stupid to say that.

His business credentials are that he insists to go to college despite being able to get the Iphone for half price. He'd rather read about buinessmen than be one.

D M - I dont need to explain why I go to school. And yes I would rather read about something before I try. You ever heard of that expression 'Knowledge is Power'. Wow even Donald Trump kids have Masters, but why would they go to school if they are already worth billions. I guess you think they are dumb too. The Rothschild kids go to school and they set on the worlds largest gold reserve in the world, BANK OF ENGLAND and the Federal Reserve. Once again I guess they are dumb for going to school. lol

I am trying to get a minor in Marketing , you know the thing that makes one person make $50k and the other $500k. I take it you never went to school past 12 grade. Wow and that is what is called education not knowledge. lol lol

[howdythere]

Now since I just try giving advice I guess I should just keep it to myself for now on because I am not filthy rich like all of you right?

[D M]

You have access to a product that can make you an overnight millionaire and i'm the dumb one? haha!