View Single Post
Old December 31st, 2009, 02:51 AM
Status: Offline
Hookah Nut
Join Date: Nov 2008
Posts: 245
Default Re: KM Wholesale????

In regards to PS3's, no retail store makes money on the sales of PS3's or PS3 games. I used to work at Future Shop (Best Buy-Esque) and as an employee I had access to the cost price that we purchased things from, from the manufacturers directly, and we make something like 1.50-3$ for every unit sold which is not much. The reason retail stores carry consoles is because they then can carry third party accessories which have a significantly lower cost price. If people know we sell PS3's, and they dont want to fork over 70$ for a Dualshock controller, they will come and buy the third party controller for 40$ where we can make 15-20$ profit. The same concept applies to desktop/laptop computers. The market for computing is so heavily saturated that we often used to sell computers below cost price if customers were willing to buy enough accessories to help clear out inventory.

Now as for wholesale costs for KM's, I looked into it and I will say this, any opportunity worthwhile is obviously going to be capital intensive. Its not as simple as paying x dollars to acquire ONE hookah. You'd obviously have to order a container, pay consignment, excise fees, duties, shipping costs, storage costs, etc.

John, to tell you the truth I cant tell you what a fair markup should be considering I am not as knowledgeable about the industry as you or other vendors, but I will say that ive seen competitor prices and there are companies that charge more then you that offer similar service, and there are companies that charge less then you with very poor service, but overall the best bang for any of our bucks is with you. You may not be the most cheap, but all the service you provide comes at a cost. If you dont mind having your package show up two weeks after its expected, if you dont mind people refusing to help you out with a mistake THEY made, all to save a buck or two, then thats your decision, but I will gladly spend more for that peace of mind.
Reply With Quote