Your Wholesale Product Source: Success vs Failure
Posted by Amanda Brooke on Sun, May 15, 2011 @ 11:18 AM
If you are considering starting a home dropship business, you’re on the right track, but be careful to choose a good wholesale product source.
When you get right down to it, your product source that supplies the dropship products you sell is the most important part of your entire ecommerce operation in dropshipping sales.
Why?
Because there is an elemental truth for every reseller: You make money when you buy, not when you sell.
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In other words, you have to buy your products at a low enough price to assure a goodly profit. If not, it won’t matter how many widgets you sell. For example, if you bought GPS units for $100 each and sold them for $150 each, then you would be making a healthy profit.
On the other hand, if you bought these GPS units for $100 each and sold each one for $102 each……forget it! You would definitely not have enough of a profit margin to come out ahead.
Not far enough ahead to make your work worthwhile, anyway.
After all, if you wound up with a nickel profit on each item you sell and sell 100 products a day, that’s still only $5.00. Whoopee! So, theoretically, you’re a huge success because you’re making a profit and selling a whopping hundred widgets a day.
But in reality, if you’re only coming out five bucks ahead at the end of the day---you’re a dismal failure instead of a huge success unless you live in a galaxy far, far away where $5 will keep you in style.
So, choose a wholesale product source that really does give you a true wholesale price on the dropship items you want to sell!
One mistake that is all too common among novice entrepreneurs is failing to add up and factor in all expenses, no matter how small. It doesn’t matter of it is just a teeny weeny expense---if it costs you money, include it into your total expenses that will give you the net sum of your profit.
Here are a few expenses that you should include:
- Home Office Supplies (Paper, Ink, Etc)
- Home Office Equipment (PC, Fax Modem, Etc.)
Forgetting to include each and every expenditure incurred in the running of your home business will put you out of business!
Choose a reputable wholesale product source such as Drop Ship Access, and you’ll be able to make a healthy net profit on your dropship sales!
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Dropship News: The Advantages of Working From Home