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KM Wholesale????

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  #1  
Old December 29th, 2009, 12:36 AM
Dizy Pilot
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Default KM Wholesale????

Hey guys,
as I was smoking one of my KM's last night I began to wonder.... "What does a KM sell for wholesale" Of course, it would greatly depend on the model, but I was wondering if anybody could give me an idea as to the range KM's go for wholesale.

Just thought it would be interesting to know what kind of mark ups we are paying.

THANKS!
-Dizy
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  #2  
Old December 29th, 2009, 12:45 AM
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Default Re: KM Wholesale????

I'm sure vendors don't want wholesale prices going public.
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  #3  
Old December 29th, 2009, 01:03 AM
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Default Re: KM Wholesale????

Quote:
Originally Posted by dsr711 View Post
I'm sure vendors don't want wholesale prices going public.
It wouldnt really matter because U have to be a vendor anyways to buy anything wholesale.

When you buy in bulk, the product is alot cheaper.

I knew a dude that owned a clothing shop and paid around $3 to $4 a shirt and sold em for $20 (retail price)
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  #4  
Old December 29th, 2009, 01:15 AM
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Default Re: KM Wholesale????

let me disclose











not! jk
but i like the post about a $3 shirt for $20. I wisj I could buy hookahs at $30 and sell for $200
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  #5  
Old December 29th, 2009, 01:16 AM
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Default Re: KM Wholesale????

Quote:
Originally Posted by Jride View Post
It wouldnt really matter because U have to be a vendor anyways to buy anything wholesale.

When you buy in bulk, the product is alot cheaper.

I knew a dude that owned a clothing shop and paid around $3 to $4 a shirt and sold em for $20 (retail price)
That is true, but in my experience, when people know the wholesale price of something, there will always be someone who tries to bargain with the vendor for a lower price. While this isn't necessarily hookah related, I've noticed it with other industries.
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  #6  
Old December 29th, 2009, 01:20 AM
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Default Re: KM Wholesale????

Quote:
Originally Posted by dsr711 View Post
That is true, but in my experience, when people know the wholesale price of something, there will always be someone who tries to bargain with the vendor for a lower price. While this isn't necessarily hookah related, I've noticed it with other industries.
Its just how business works and consumers have got to understand and live with that. I do.

When you go buy a ps3 at wal-mart. I can almost guarantee they get them for around $100 and sell em for $350.
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  #7  
Old December 29th, 2009, 01:46 AM
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Default Re: KM Wholesale????

Okay, as a former retail manager and a former hookah bar monkey, let me say this:

First, I will not disclose the wholesale price of pipes out of respect for the vendors.

Now, let me say something about retail cost: Just because a vendor buys an item at wholesale price, which can be anywhere from 10% to 70% of retail, that does not mean that it is the actual cost the vendor needs to recoup. The retail cost of a given item entails its actual wholesale cost, operating costs and overhead, and gross profit.

If I buy a hookah wholesale for $50, and sell it for $100, that looks like a lot of profit... But when you consider operating costs, I might only be making about $10 actual profit (After my business costs are covered.)

If I had to reckon a guess, I'd say that pipes are probably not huge profit-producers for most vendors (Just speculation here), I suspect most of their actual revenue comes from tobacco and coal sales.
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  #8  
Old December 29th, 2009, 01:52 AM
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Default Re: KM Wholesale????

Quote:
Originally Posted by Coyotero View Post
If I had to reckon a guess, I'd say that pipes are probably not huge profit-producers for most vendors (Just speculation here), I suspect most of their actual revenue comes from tobacco and coal sales.
True. I was friends with a dude that owned a bicycle shop in town and he told me he didnt make much on the bicycles themself at all. Most of his revenue came from ordering individual parts or repairs.
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  #9  
Old December 29th, 2009, 03:07 AM
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Default Re: KM Wholesale????

Quote:
Originally Posted by Jride View Post
Its just how business works and consumers have got to understand and live with that. I do.

When you go buy a ps3 at wal-mart. I can almost guarantee they get them for around $100 and sell em for $350.

fake, as much as i know, most of shops loses money by selling the ps3, they make money on the games though...

gotta find out where ive read this, but im pretty sure of it
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I used a garden hose once. I dont recommend it.

But I did have the hookah in the garage and was able to smoke while walking to get the mail
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  #10  
Old December 29th, 2009, 03:19 AM
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Default Re: KM Wholesale????

I agree with John's 30 to $200 idea...that would be quite nice....

As for the PS3....no...the shops don't lose on consoles.....Sony loses.
They lose on the console and make up for it with game sales.

However....I dont actually think they really do lose on the consoles anymore...as they did in the past
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  #11  
Old December 29th, 2009, 03:52 AM
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Default Re: KM Wholesale????

I made a wholesale @hookah-shisha with my Dad's tax ID and the prices are quite nice...I don't really want to post anything but look at the forms in that one hookah bar post he has a bunch of wholesale prices for stuff listed in his start-up costs....
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  #12  
Old December 29th, 2009, 06:40 AM
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Default Re: KM Wholesale????

Quote:
Originally Posted by MirelZ View Post
fake, as much as i know, most of shops loses money by selling the ps3, they make money on the games though...

gotta find out where ive read this, but im pretty sure of it
Quote:
Originally Posted by NazarHookah View Post

As for the PS3....no...the shops don't lose on consoles.....Sony loses.
They lose on the console and make up for it with game sales.

However....I dont actually think they really do lose on the consoles anymore...as they did in the past
They started making a profit on them last year i think, once the slim was instroduced production cost decreased.

I think the mark up would be around 30% but thats just a guess, but as mentiooned earlier that doesnt reflect how much profit is actually made
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  #13  
Old December 29th, 2009, 07:31 AM
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Default Re: KM Wholesale????

Well TheEgyptian gets them for around 25$ to 30$ at the KM shop in Cairo. Now the fun starts.

I can get them at the same price but I have to take a minimum of 2500 pieces in a container load and then ad shipping and taxes then that 25-30$ escalates dramatically also leave room for breakages ect. So the profit margins on Hookahs is very slim. You must also factor in the cost of advertising and shipping the hookahs to clients and while the stock is lying in your warehouse it is not generating any revenue and your overheads will not stop just because the stock is not sold.

The other option is a return ticket to Cairo plus hotel expenses ect to go to the Km shop to save 50$

So you Guys have a good deal going with the prices you get. Here I can only get Cheap Chinese knockoffs and stainless hookahs mass produces by Besisa-Esam of Egypt

A big +10000000 to the Vendors in the states that has been servicing this community with integrity and adherence to quality.
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  #14  
Old December 29th, 2009, 11:32 AM
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Default Re: KM Wholesale????

+1 glos. thanks for pointing out things that many people may not understand.

I'd like to ask what do the members think a fair profit on any given hookah should be 10%, 100%, 200% etc. The answers will range depending on the experience or understanding of the member/consumer.

Also, MechEng, please don't post those price out of professional courtey. The information you have is for people in the business. Use it to your advantage but not make public knowledge, thanks.
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  #15  
Old December 29th, 2009, 11:49 AM
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Default Re: KM Wholesale????

Oh you can get them quite cheap.... You just need to buy a Containers worth or other minimum (most likely something like 250+ for generic egyptians likely more for brand name hookahs ), pay the FOB, Freight fowarder, in the end after all that its not so cheap. if your curious and have a tax id and buisness certificate you can check out sites like Alibaba to see what things go for, it seems cheap it isn't. Leave the import and sale to the professionals. buying a hookah @ 35 may seem like a deal, but then you have to buy waaaaaaaaaaaay more than you need, pay fowarder,etc

and overhead for a store, location rent,water,electricity. etc


in the end it isn't a deal. trust me.

I used to have a (non hookah) retail store.

Last edited by HookahEnigma; December 29th, 2009 at 11:53 AM.
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  #16  
Old December 29th, 2009, 12:04 PM
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Default Re: KM Wholesale????

asdfadsfasdf

Last edited by Str0mz0r; December 1st, 2014 at 04:57 PM.
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  #17  
Old December 29th, 2009, 10:40 PM
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Default Re: KM Wholesale????

Quote:
Originally Posted by Str0mz0r View Post
Honestly the profit margin should be up in the 150%-175%. Take for example the local pizzeria I work at. Our most expensive pizza costs $20 dollars, while it only costs my employers $3 dollars to make.

Quick question are you willing to pay 300$ plus for a KM that you normally pay 100$ for.

That is like buying Ed Hardy tobacco (Starbuzz in a fancy tin)
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  #18  
Old December 30th, 2009, 01:31 AM
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Default Re: KM Wholesale????

Quote:
Originally Posted by Str0mz0r View Post
Honestly the profit margin should be up in the 150%-175%. Take for example the local pizzeria I work at. Our most expensive pizza costs $20 dollars, while it only costs my employers $3 dollars to make.


Comparing those 2 things is like apples to oranges
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  #19  
Old December 31st, 2009, 02:51 AM
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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.
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  #20  
Old December 31st, 2009, 04:19 AM
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Default Re: KM Wholesale????

thanks kishen for the second part of that post, afterall money isn't everything, now to the first part, i would guess and this is only an assumption that the stores that say they only make a few bucks on the console get "rebate" money. 12 years ago i worked in the computere parts distirbution industry, we would make 6-8% margin, this was wholesale, and i'm sure they make less now, huge volume, but we would always get incentives. they would give salespeople "spiffs" on certain days, make an etra $5 to your pocket n this or that model today only. also, the company on a regular basis would make rebate money on volume, it's like when you buy a car and they show you an invoice and tell you they are making $500 over invoice, which sounds great to the consumer, in fact they make a ton more, the invoice say x dollars but the delaership makes bonuses on the amount of card they sell and it could be 10 times the $500 you thought they made, it's all fair, it's business, but in hookah we don't have these "rebates"
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  #21  
Old December 31st, 2009, 11:58 AM
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Default Re: KM Wholesale????

Quote:
Originally Posted by Kishen View Post
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.
WOW thats ridiculous in canada then, as i can get Ps3 at a wholesale rate for about 30% cheaper then retail stores sell at, but i havent got the capacity to buy the 5000 units required
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  #22  
Old December 31st, 2009, 02:18 PM
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Default Re: KM Wholesale????

I worked in a pool supply store and markup on items ranged from 175% all the way up to 1200% depending on the item. An example is that we bought stainless steel hose clamps for ~$.25 and sold them for somewhere around $3.00. Inflatable rafts we purchased directly from the manufacturer for $3.00 sold for around $20.
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