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Old October 2nd, 2007, 09:15   #43
Farmboy's Avatar
Join Date: Jun 2005
Location: Trenton Area
Look at the prices, there almost identical for both Asia and America. Wich means the Americans are getting there goods from the same place the Asian retailers do. shipping is allot cheaper from the stats to Canada then Asia to Canada, Jet fule is expensive.
The US also buys huge amounts like you were saying with Walmart. They also get sent by ship from Asia, not air. They are sent over in sea containers not cardboard boxes.

Ok one thing you should know from dealing with Airsoft retailers is they can get bulk orders, so that restriction is most likly False.
Once you invest in something you wait untill it turns a profit. It becomes earning potential becuse you ivested your money into it. Your money sitting in your checking account is lost earning potential.
So inventory in a ware house or other storage facility is potential profit.
Bulk orders do lowever prices to a certian degree. However most Canadian retailers can't purchase the bulk sizes to get the best prices, because they know it will take years to sell.

Inventory sitting in storage is not only potential profit but it is loss of working capital and costing me interest the longer it sits there.

Profit isn't just made in on a single sale of an item, it depends on quick continous turn over - the more times per year I sell my entire stock.

The price of a glock 18c has gone up from $290 to over $300. How does that happen when our doller rises
$10 isn't much. It's also percentages you have to look at. $10 is 3% on 300

Do you sell Guns or gear? Becuse if you sell guns at American prices Let us know and your stock will be sold out in minutes.
Gear and equipement. We don't carry anything directed specifically to the airsoft market because the money is not there. You may think it is because you know 10 guys that want stuff, but wanting something and putting money down are two entirely different things.

Dude lowering the prices isent lowering the amount you get for your investment, its lowering your profit on the item. you still make profit
just not an insane 100% or more profit
Most retailers would jump for joy if they could make 100% margins.

Now if they Lower the prices by lowering there profit on each item then they can perchase more stock and in the long run sell more stock due to lower prices and turn more profit due to a higher client base then befor.
Unfotunatly in retail it doesn't work this way. I've already said that I dropped my prices and there was no rise in sales. It doesn't matter if it's gear or guns, the same theory should hold true.

Take for example a gaming system or computer. The price drops after thousands are sold. They don't cut the price so that many more can be sold.

It's also not a profit untill I make more than I invested. If I bring in $40,000 worth of gear, I don't make any profit until I sell more than the $40,000 and covered my other expenses. If I sell a TAG RAC for $600 I haven't made any profit on it until I get above the $40,000 (not including other expenses)

Most of us base our buisness knowledge off of what we see when buying stuff for our selves.
Most business people base their knowledge off of experience in business and training. Not watching. Same goes for anything, your not special forces because you watched "Tears of the Sun".

We know that wal-mart closes down almost every other store around it when it opens.
Volume purchases, which can only be done if you have turnover or a huge amount of working capital. On top of that you need to be able to leverage your suppliers.

Most businesses who fail dont advertise properly.
Actually there are a couple of reasons.

1) Not enough working capital
2) Bad products
3) Wrong area

You may be swamped with more sales than you can handle and if you can't supply to that demand........
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