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Old 12-02-2008, 10:29 AM
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Join Date: Dec 2007
Location: So. of Rosarito, Baja, Mexico
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Steve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud ofSteve Bagu has much to be proud of
GROSS PROFIT = $$$$$$
Minus - Cost of Product (whlse purchase price)
Minus - Cost of Labor % (employees)

Minus - Cost of Rent %
Minus - Cost of Utilities/Phone/Advertising %

Minus - Cost of Taxes/Business Insurance/Medical Insurance
Minus - Cost of Business Vehicle (s) %
- (List goes on)
= NET PROFIT

On a large scale RETAIL operation The NET PROFIT might be only 2 % of GROSS SALES after all expenses are paid based on a QTR or 13 week time frame.
Big stores are doing a VOLUME sales but at the same time have a HUGE OVERHEAD so the NET PROFIT is LOW based on the above Info.


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Old 12-02-2008, 11:09 PM
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Join Date: Dec 2006
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Quote:
Originally Posted by aaauger View Post
There are plenty of instances where product is (legally) sold without being physically inventoried by the seller. Independent sales reps do this all the time. Take Avon, for example. In addition, sometimes the products don't even exist because they're custom manufactured.

You do need to make sure you have a reputable supplier and a written agreement. You should also have a backup plan. The less control you have over your supply chain, the more vulnerable you are to fail.
Agreed; however, in your Avon example a rep will have some samples as part of the kit they purchase when they decide to invest in the business. The clients with the Avon rep know that the product is reputable and the rep's success in Avon is dependent on his/her client service (as well as recruiting new members). The clients actually have product that is tangible, and the rep can break in new product that is in development.

The OP wants to sell a product that is not tangible which is going to be very hard in itself. If he doesn't think the product is the greatest thing on the planet, he will fail. He has to convince potential clients why in this economy they need to open their checkbooks for this product today.

All of the posts have been right on the money.
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Old 12-27-2008, 07:50 PM
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texdav has a reputation beyond repute
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Besides with Avon your just a sale person and not the owner. The only inventory you have is what the avon sales you that you profit on. If the client backs out ;you still have the inventory that you have to pay for.They on the other hand have a sell when you order.
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Old 12-31-2008, 03:07 PM
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I guess city-data makes through the Great Wall's web censoring software...

Happy New Year to you as well!
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