Electronics Reselling

[Sybersport]

A long term investment will get you the same return with no time investment required. If you're making a GROSS profit of $30 on a $900 phone (and that's not even taking into account any selling expenses, the value of your time, etc), that's just over 3% - a bond or GIC will give you more return than that just for sitting on your ass and twiddling your thumbs.

This isn't totally accurate - a business, as an investment, has a compounding effect because you can reinvest your profits into the business continually, and see a greater-than yearly return.

And in the retail world, customers pay when the item ships - and most suppliers are net 30 - so the customer is financing the purchase anyways.

[Sybersport]

The Automotive field is a great field to get in to b/c the mark-up on products are huge.

OEM / Factory replacement / White box parts - there are good profit margins.

High performance parts - definately not.

Not to toot my own horn, but b/f doing what I'm doing now, I owned www.sybersport.com - I was deep into the business, and I made $$$ on selling large volumes, and I had to supplement this income running a retail store and tuning cars on our chassis dyno.

[Drew_W]

This isn't totally accurate - a business, as an investment, has a compounding effect because you can reinvest your profits into the business continually, and see a greater-than yearly return.

And in the retail world, customers pay when the item ships - and most suppliers are net 30 - so the customer is financing the purchase anyways.

If you're just starting out, it's incredibly difficult to get TERMS accounts, especially if you have limited cash flow.

[Sybersport]

If you're just starting out, it's incredibly difficult to get TERMS accounts, especially if you have limited cash flow.

I can't argue that point, b/c I don't have experience in other idustries - but I can say in the automotive world, I have never run into a manufacturer/distributor/wholesaler who wasn't willing to offer me net 30 when I first started out. They did (at first) put a cap on the volume you can order each month, however.

What I did do with suppliers who would not offer me favorible terms was negotiate drop-shipping accounts, so at least my international customers were able to receive their products in a short period of time - and in those cases, the orders were basically financed by the customer - I only had to provide a 3 day bridge loan for the order.

[cy]

Drop shipping is VERY convinient if you have a trusted supplier. I used to do that with cell phones, that saved alot of time from Asia to Client instead of Asia to Canada to Client, unless the client is local.

[that_staples_guy]

I started doing the drop shipping initially before I put a halt on going forward with my business. The thing with drop shipping is that it costs more per product making your profit real thin when trying to be competitive in pricing. When reviewing the price list I see that real profit can be made when ordering phones 10 at a time, for that, I need some major capital which I don't have.