China Wholesale Which price is the right price to pay

China Wholesale: Which price is the right price to pay?

Buying wholesale product sources in China is a great way to make a good income with an online business, working from home, but how do you determine if a quoted price is the correct price to be paid?

One thing you should notice right away is a basic principle of buying for resale: you earn your money when you buy – not when you sell.

What this means?

Okay, let’s show you an example: let’s say you buy a flat-panel TV for $ 250 from a source of wholesale products in China. You sell the TV for $ 260. So you made a profit, right?

Wrong.
Why not? Because it’s highly unlikely that your operating costs are low enough to allow you to make a profit from selling a product for only $ 10 more than you paid for it.

Think about it. You almost certainly have some expenses incurred in running your business, even if it is a home based business. For example, here are some typical business expenses:

  • Computer
  • Computer Accessories & Supplies
  • A bookkeeper or accounting software
  • Office Supplies
  • Rates for selling products on Amazon or eBay
  • Cost to maintain your own website if you have your own online store
  • Advertising and promotion of your business
  • And more

Now let’s say that your expenses being a home-based business are quite low and you only have to sell 40 flat-screen TVs per month at $ 10 over what you pay for each to cover your business costs. Would you be in good shape then?

China Wholesale Which price is the right price to pay

Do not.

Here’s the kicker – even if you made enough profit to cover the expenses of your home business … what do you plan to live on? How will you pay your bills and living expenses if all you did was get enough profit to balance the cost of running the business?

Of course, this will not work.

So, in order to have a successful home business in reselling wholesale products you source from China, you will have to buy low and sell high. Or at least tall enough to really earn a living.

Now let’s rearrange the scenario shown above and say that you bought a flat-screen TV for $ 200 and sold for $ 350. As long as your expenses are reasonably reasonable in running your business and you do not want to live beyond your chances, this should ensure that you have a sufficient profit to be a success in your home-based business. You’ve covered your business expenses and it’s still $ 5600 for good if you sell ten TVs a week.

That’s more like it, is not it?

So to make sure that you are going to get ahead, you have to find products with a low purchase price, with a high selling price for a decent profit margin. To find out what you can expect from a product, check Amazon and eBay to see the average selling price of the same or similar item.

Then find the lowest price you can get for this product from a China wholesale product source and do the math to see if it will yield enough profit.

Keep in mind that buying wholesale from China is the same as buying wholesale anywhere where the price drops as the number of products on your order goes up. In other words, you can safely assume that you will get a cheaper price if you buy 100 flat screen TVs than if you only buy 2 or 3.

This makes sense and is basically a given.

So for the smaller retailer or for someone who is starting in business, it is imperative that you find a wholesaler from China. Buying wholesale products from China and reselling them is a great idea to make money on your own online business.

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