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Kevin Luxon

Risks assessment is extremely important when buying and/or selling products and services. If you are going to take possession of the goods you are selling, you will need to understand inventory, depreciation, market risks, competition and many other variables that can influence your success or failure.

For example: The distribution model in the USA is changing with manufacturers and companies selling direct to consumer online. If you take possession of the goods you intend to sell, let's say at a 20% margin, you may find unexpected expenses and operating costs to exceed 20% and find yourself broke.

Let's say that your customers are not successful with the sell-through and shoppers simply use their store as a "Show Room" (see it, search online with their mobile device, and leave the store).

All of a sudden, your customers cannot earn their expected profits because the manufacturer or another distributor is happy making a 10% margins selling directly to consumers online. Now you have the product back in your warehouse and after the reverse logistic expenses (shrinkage, damaged packing, etc.), you will end up with no RIO.

With everything becoming automated, JIT inventory practices are more manageable and offer less risk of getting stuck with the product. You may be successful with the Sell-In, but more importantly, the sell-through support is required and you will need to understand MDF funds, POP, and product training solutions.

Understanding margins, turn-over, and product life-cycles will help you become successful buying and selling to make money.

SUGGESTIONS: Use CRM system to manage your customers, invest in an inventory software program, evaluate drop ship solutions/options, and pick a niche product with less competition. Invest 10% of your Net Profits; 5% into MDF funds/advertising and the other into a retirement plan. Ask yourself, where do you want to be five years from now? and have an exit strategy so you don't find yourself hustling door to door when your sixty..

Answered 3 years ago

Kevin Luxon
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Dominick Cuda

Uhmmm their is an old saying, "do what you love and money will always follow". Going one step beyond, it is important you provide a product or service you believe will bring value and benefit to the client. As a result a reputation will be established for which you will reap credibility and respect.

Answered 3 years ago

Dominick Cuda
0

MICHAEL PEDARRE

Making money should be a result, not an objective. If you want to be successful, long-term, decide how you can fill a need with products or services.

Answered 3 years ago

MICHAEL PEDARRE