I have watched a few of your video's today. They are quite informative, well presented, and having been a former CFO, this one is properly summarized (Have seen a few others in the past by others where it was obvious the presenter was way out of their wheelhouse). At any rate, one component that I have come across in setting up my new store is customs/duties expenses. I am a novice at this so perhaps I am missing something, but in some cases the amounts are significant. This is a drop shipping store with goods being imported into Canada, and eventually the U.S.. (U.S. imports are less an issue as the thresholds are higher).
Let's say market price for my product has good margin (2x), although I need to brand it myself. If I use my supplier's GTIN, his resellers are selling it very low with only 10% margin. What would you do, Anton? Brand it yourself, or use supplier's GTIN?
PLEASE DO A QUICK MATH VIDEO ON INVENTORY COSTS, IVE BEEN LEARNING PROFIT MARGINS AND ETC BUT IM TRYNA GET READY FOR INVENTORY COSTS. im just scared imma end up in debt, if I dont have the right numbers
How do you get the average? Do you just plug in a main street address in Miami, New York City, Chicago, Houston, Seattle and San Diego (2 in the east, 2 in the center, 2 in the west)? Is this a good enough array for shipping to get an average price?
Even with 50% profit margins on the smaller furniture I sell, I can't seem to find shipping rates through UPS/FEDEX that are low enough to make a profit at the end. For small parcel is there a way to get better rates? I know you briefly mentioned being charged ~$150 for shipping a stand up desk. I can't seem to get rates lower than ~$300+ for a set of dining chairs. Any advice on this?
when you say VAT do you mean Value Added Tax? Does that mean State Sales Tax or is that separate? We cover Shipping and tax, correct because the tax is assigned to OUR location, not the location of the customer, right? I read an article and it confused me. It was like it was TRYING not to give me a straignt answer on what SHOULD be a straigh forward easy question. Sorry, I guess this became a rant.
@@Zr0din I am watching from Denmark, and our add tax on each product is 25% (Moms in Danish). Therefore we buy from our supplier i an other EU country whitout tax and pay 25% in tax on sales price ( 25% of the sales price is money that have to be paid to tax authorities). Therefor we calculate it as a cost. The profit then have to be taxed (income tax) around 40-50% (for sole proprietorship) in Denmark so that is also a cost in our calculation. Do not know how it is in the US but this is how we do it in Denmark. Hope it gave a bit of answer of other costs that can be included.
I thought that the product cost provided by suppliers is generally a 30% discount on the selling price? Is a product cost of 50% of selling price common?
Hello Anton, Im a DSL student and right now im uploading my products. I operate in UK and the supplier have RRP but some of the competitors do not operate that way. I put the details I know with the competitor retail price for a certain product. And your calculator show a 20% profit. But I dont how to price the other prodcuts . Be cause RRP can not be used as it has huge profit margin and i can never compete. Is there a way to reverse engineer your calculator so i can come up with the sale price for my products?
That's great to hear James! What I can suggest is to maximize all the resource available to you. If you have any questions, reach out to our support team at support@dropshiplifestyle.com
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ive watched about five of your videos so far and they have all been very helpful in one way or another. thank you
I have watched a few of your video's today. They are quite informative, well presented, and having been a former CFO, this one is properly summarized (Have seen a few others in the past by others where it was obvious the presenter was way out of their wheelhouse).
At any rate, one component that I have come across in setting up my new store is customs/duties expenses. I am a novice at this so perhaps I am missing something, but in some cases the amounts are significant. This is a drop shipping store with goods being imported into Canada, and eventually the U.S.. (U.S. imports are less an issue as the thresholds are higher).
Thanks Anton, awesome tool and info!
Let's say market price for my product has good margin (2x), although I need to brand it myself. If I use my supplier's GTIN, his resellers are selling it very low with only 10% margin. What would you do, Anton? Brand it yourself, or use supplier's GTIN?
In that case, I would private label. You may find this video helpful :) ruclips.net/video/1knXVcXpAVc/видео.html
PLEASE DO A QUICK MATH VIDEO ON INVENTORY COSTS, IVE BEEN LEARNING PROFIT MARGINS AND ETC BUT IM TRYNA GET READY FOR INVENTORY COSTS. im just scared imma end up in debt, if I dont have the right numbers
How do you get the average? Do you just plug in a main street address in Miami, New York City, Chicago, Houston, Seattle and San Diego (2 in the east, 2 in the center, 2 in the west)? Is this a good enough array for shipping to get an average price?
Yes, this is what we do. It's not perfect, but it does give an average to use as a starting point.
Even with 50% profit margins on the smaller furniture I sell, I can't seem to find shipping rates through UPS/FEDEX that are low enough to make a profit at the end. For small parcel is there a way to get better rates? I know you briefly mentioned being charged ~$150 for shipping a stand up desk. I can't seem to get rates lower than ~$300+ for a set of dining chairs. Any advice on this?
Another Valuable video Anton
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Great Video but, You did not factor in VAT and Income TAX.
when you say VAT do you mean Value Added Tax? Does that mean State Sales Tax or is that separate? We cover Shipping and tax, correct because the tax is assigned to OUR location, not the location of the customer, right? I read an article and it confused me. It was like it was TRYING not to give me a straignt answer on what SHOULD be a straigh forward easy question. Sorry, I guess this became a rant.
@@Zr0din I am watching from Denmark, and our add tax on each product is 25% (Moms in Danish). Therefore we buy from our supplier i an other EU country whitout tax and pay 25% in tax on sales price ( 25% of the sales price is money that have to be paid to tax authorities). Therefor we calculate it as a cost. The profit then have to be taxed (income tax) around 40-50% (for sole proprietorship) in Denmark so that is also a cost in our calculation. Do not know how it is in the US but this is how we do it in Denmark. Hope it gave a bit of answer of other costs that can be included.
I thought that the product cost provided by suppliers is generally a 30% discount on the selling price? Is a product cost of 50% of selling price common?
Yes. Sometimes more, sometimes less. But a straight 30% discount would be too low.
@@dropshiplifestyle Good to know. Thanks for the reply Anton.
Shouldn't the profit margin be calculated on the basis of Total expenses instead of Sale amount ?
Hello Anton, Im a DSL student and right now im uploading my products. I operate in UK and the supplier have RRP but some of the competitors do not operate that way. I put the details I know with the competitor retail price for a certain product. And your calculator show a 20% profit. But I dont how to price the other prodcuts . Be cause RRP can not be used as it has huge profit margin and i can never compete. Is there a way to reverse engineer your calculator so i can come up with the sale price for my products?
How are u making a profit if u only making 295 and losing 905 with expenses
Dope
Started the 21 day plan about 6 days ago and I’m in website creation. Any advice?
That's great to hear James! What I can suggest is to maximize all the resource available to you. If you have any questions, reach out to our support team at support@dropshiplifestyle.com
Is it a good idea to dropship through china suppliers?
Shipping times and product quality is a problem.
Don't do it! Here's a video I recorded explaining why: ruclips.net/video/N3ggPr5VxCA/видео.html
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