After speaking with the sales rep (I guess that’s what you call her) over the past three weeks, I’ve made a decision to just order 500 pcs of the shaker bottle. The $1.60/piece that she quoted me changed to $1.90/pieces with 500 pieces. Shipping is $150 for the slower shipping method of a cargo ship. That ends up to about $2.20/ piece per shaker.
If I sell it for $4.40/shaker, that gives me a 200% profit margin. Startup podcasters suggested to have a 400% profit margin. But that would mean that I have to sell each shaker bottle for $8.80, which is not competitive anymore considering average shaker bottle is selling for $7.00 per shaker. So, should I settle for a 200% markup? At least until I can make profit and determine that the product is selling, then I can order more 1,000 pieces for the 1.60/piece price.
This wholesale purchasing through Alibaba takes a while, but haggling and negotiating is exciting. Less intimidating due to online communication. We’ll see though… You never know, I might just do absolutely well, right!?
Hi. I'm Kent and this is my blog. Let me know what you think.