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Forum topic by FancyShoes posted 08-06-2015 02:15 AM 877 views 0 times favorited 10 replies Add to Favorites Watch
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FancyShoes

509 posts in 831 days


08-06-2015 02:15 AM

So i have been operating a small tooling business for a little while now, i have been trying to find vendors/suppliers products to sell.

I am really starting to get pissed off because i finally found a couple companies that set me up and got me going with their products, the discounts i get are pretty significant compared to retail, however i just came across a couple popular online retailers that sell those same products for $20 higher than my cost.

How am I seriously supposed to try and make it in life if i cant seem to generate profit.

Here is one example, product retails for 450, my cost is .35 of that, so that is 157, company a sells it for $175.

And these are not really the volume kind of products.


10 replies so far

View TopamaxSurvivor's profile

TopamaxSurvivor

17676 posts in 3143 days


#1 posted 08-06-2015 05:10 AM

Welcome to the real world of dog eat dog business. I was a contractor for nearly 30 years. If price is the only consideration, you will have a very tough row to hoe and probably will not make it. You need to provide service that warrants what you need to make it work. Good Luck.

-- Bob in WW ~ "some old things are lovely, warm still with life ... of the forgotten men who made them." - D.H. Lawrence

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DKV

3940 posts in 1971 days


#2 posted 08-06-2015 02:53 PM

I agree with topa. If you could tell us what the products are we could better help you differentiate yours from theirs.

-- This is a Troll Free zone.

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FancyShoes

509 posts in 831 days


#3 posted 08-06-2015 03:07 PM

I just got set up to sell the Teco Westinghouse VFD’s, Bryd shelix heads and their other tooling, and Baldor Motors.

I am now in the process of figuring out how to distribute with only $20 profit, per item, if i can sell a pallet load at a time it would be better. But these products dont really have that high of volume.

There. Is one other company i am working with that will be my main profit, but with them, i need a minimum order of $25,000. So until i have that $25k i have to do something else until i have enough.

What I am going to do is just talk to everyone I can who is interested in what I have, and hope for the best. Also provide top customer service. Drop shipping from the supplier should help out bu cutting out shipping costs to me.

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FancyShoes

509 posts in 831 days


#4 posted 08-06-2015 04:56 PM

Maybe I am just comparing to a company i used to work for, I worked for a semi trailer parts company, and when they sold products, they were at a 350% mark up.

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TopamaxSurvivor

17676 posts in 3143 days


#5 posted 08-06-2015 05:34 PM

You definitely have to find that niche. Most electrical contractors bid with the wolf pack and operate on a 2 or 3 % margin. Many had collection problems on their good jobs ;-( I found my niche and really had no competition as long as my prices were reasonable. I was not a high volume, commodity item vendor like most. That is what you need to identify; something that is difficult for the competition to provide at a reasonable price level. That may not be possible selling these items???? The key to a long successful business is knowing when to just say “No.”

-- Bob in WW ~ "some old things are lovely, warm still with life ... of the forgotten men who made them." - D.H. Lawrence

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FancyShoes

509 posts in 831 days


#6 posted 08-06-2015 06:11 PM

I found that operating a HvAC business, i stoped trying to compete with everyone. People wanted me to do 1000’s of dollars worth of work for iner $400, and i couldnt handle that, so i stopped competing, and lost my business. I didnt see why i had to compete with guys who are one man, non insured, dont pay taxes and teally didnt know what they were doing. But hey, as long as the customer got the job installed at the right price they were happy, until they realized they hired someone who didnt know what they were doing, and then i would get a call from them wanting me to fix the last guys mistake for even less than what they paid the first guy.

I have been trying to find the right business that isnt very competitive, and i dont see anything. Found did find one avenue, but it cost so much, and i cant afford it.

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TopamaxSurvivor

17676 posts in 3143 days


#7 posted 08-06-2015 08:08 PM

I saw a lot of that. I was asked to do a 55 story high rise for half my bid; meet the competition’s bid and they expected my quality work. I said no and eventually quit bothering to bid that stuff. Due to the general contractor’s procedure’s and asinine demands, I’m very lucky to not have gotten for my price.

I could not do today what I did starting in 1985 and retiring in 2014. It is a different economy and there are too many people competing for too few jobs.

-- Bob in WW ~ "some old things are lovely, warm still with life ... of the forgotten men who made them." - D.H. Lawrence

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FancyShoes

509 posts in 831 days


#8 posted 08-06-2015 08:20 PM

I believe those “Beazer” homes and ones like it are the same. They want contractors to come in and do the work for next to nothinh yet they sell for top dollar, I told one of the companies who wanted me to bid some work like that “why should I let you make my profit when you sell the home”. He said he understood my point and found another company that was willing to do the work. Maybe that is why i am not in business and they are.

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TopamaxSurvivor

17676 posts in 3143 days


#9 posted 08-06-2015 08:24 PM

There is no point to being in business if you do not do better than having a real job. That includes the salary and all the benes. Why take the risks?

-- Bob in WW ~ "some old things are lovely, warm still with life ... of the forgotten men who made them." - D.H. Lawrence

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Tim

3119 posts in 1428 days


#10 posted 08-08-2015 11:26 PM


Here is one example, product retails for 450, my cost is .35 of that, so that is 157, company a sells it for $175.

And these are not really the volume kind of products.

- FancyShoes

You definitely can’t compete on price with that. You’ve got to make a name for yourself and market well. It’s not easy to do so that’s why so many businesses fail.

But that company is not making any money on it at that price either, so my thought is they have some other way of making up the lost revenue. Either it’s a straight scam, they’re adding $400 extra on shipping to it, or if it’s a website they use malware or something to get money out of people.

You could also try talking to your supplier and see if they know about it. Many won’t allow selling for just over wholesale because they want to protect their reputations too. Some want their retailers to be happy as well.

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