Importing goods

[cam.thompson]

Hello Everyone.

First post here. While I was on a month long vacation to the Philippines, I brought along Tims book, which I had for a month on my bookshelf collecting dust. So now I am inspired. I have the worst kind of job: a good paying, somewhat comfortable 9-5 office job but I am pretty disenchanted with my career path. Anyway, onto the muse idea.

When I was in the Philippines, I collected contacts from all over the country to use as sources for importing cheaply made, high quality, hand crafted goods. I also found a buying agent that will do everything local for me including QA, haggling, shipping, etc. The problem I am faced with is logistics.

The most economical way for me to import (highest margins) requires me to rent a container for 1800, and then I have to buy the goods to fill it up. Initially this isn't such a problem for me as I should be able to come up with sufficient start-up funds to send myself a container. However, I have in mind the idea to sell several different products, not just one. Is this a bad idea for a muse? When I run low on one product, the idea is to automatically order a re-supply, but filling a whole container with just one product will be far to excessive and I doubt I will be selling enough volume to warrant that.

Basically, I guess what I'm asking here is:

Has anyone tried successfully to start a import-based muse with multiple products for one niche?

look at http://www.palecek.com/index.html as an example of one possibility (although niche too large, I know... I am thinking eco-friendly bags and backpacks for students, as an example)

Kamakiri, feel free to be brutally honest, I know you will anyway.

[Sven]

Welcome to the forum.

It seems to me that there is a plan lacking here. Anyone can ship a container full of stuff anywhere.
You need a channel to sell your stuff and to build that channel a whole container is way too much unless you'd be able to sell it within a few months.

A website like the one you mentioned is the result of a lot of work, experience and money. No way a newby with only time available can get that going.

I'd say, start with what is unique to you, build a plan and start small. Buy boxes, not containers.

[kamakiri]

Kamakiri, feel free to be brutally honest, I know you will anyway.

You know... I have a growing list of PMs thanking me for my advice. I have lightened up a bit (as Marcie knows, I was even able to per a kitten last year). Thanks for letting me know I can take off the gloves though. I will.

Tim's book really is inspiring. One of the best kicks that most people will ever get. That you are there too doesn't say much. He wrote the book with that in mind. The real trick for you is to take that energy and use it in something productive that lasts more than a few days or a month.

You mention disenchantment. Everyone is disenchanted. Look at all the guys who 'have everything' and are so unhappy they turn to drugs, dog fighting, hookers, you name it. Unless you have a base, the problems you see today will follow you, and no container from the Philippines will cure you.

LD before muse is key. Any idiot can buy a container worth of stuff and ship it over. All that takes is about $6000 on a credit card. Don't out-think yourself. You don't need buying agents, accountants, SEO pros, freight forwarders, or hagglers.

How could you have a logistics problem? Thousands of shipping companies ship millions of containers a day. I can have one from Fukuoka shipped with a phone call. That is the easy part. Freight forwarders in the US would fight over your business. If you dig a bit deeper and still can't find what you need, let me know. You are asking the wrong questions in this department.

Selling a whole container of the same thing is hard, unless you are Costco. Diversification through selling a few products is a perfectly reasonable option, but there is still huge volume there. Look into shared containers and just cases to begin with, as Sven said. You have no business with the big boys importing those huge lots of products.

Has anyone tried successfully to start a import-based muse with multiple products for one niche?

There are thousands of examples of this. Not many of them are real muses though, they are companies that have staff, desks, and inventory. There is no way you could outsource this from day one, and you would be foolish to.

What you should do:

After you spend a few months doing some serious LD, and changing your habits, get a web site up. Tinker with it, outsource some things if you want to play with outsourcing. Get some test sales, then have your first lot shipped directly to your house. Call up FedEx, and the sales man will trip over himself running to your door. Learn about shipping, and actually do it. Get to Phase 2. Then when you have paid some dues (made some sales), crank it up. With a good base (LD) and a track record (phase 1 sales), you will be in perfect position to walk away from your 9-5, and live life on a beach.

[cam.thompson]

It seems to me that there is a plan lacking here.

This is exactly right Sven, thank you. Getting my thoughts out of my head and onto this message board helped me realize that too.

You know... I have a growing list of PMs thanking me for my advice.

Exactly why I asked for your advice :)

Thank you all for your thoughts, seems I have a long way to go. But I am under a lot of eustress to change my life, and I am going to get it done.

[cam.thompson]

A website like the one you mentioned is the result of a lot of work, experience and money. No way a newby with only time available can get that going.



Just as a side note, I don't mean to be contradictory or inflammatory here, but my background is in programming and IT. It would be a bit of work, but I can design a pretty decent website (such as that one) on my own.

[Sven]

I do not mean to be demeaning in any way either. I have been a supplier/manufacturer for graphic designers, architects and photographers for over a decade, I am a product designer and I know that 99% of technical people haven't got a clue on what makes something look good, and the majority of those think they do.

But that does not always matter. A lot of people do not know good design from bad anyway.

[jakediddy]

Just as a side note, I don't mean to be contradictory or inflammatory here, but my background is in programming and IT. It would be a bit of work, but I can design a pretty decent website (such as that one) on my own.

Don't forget about the power of outsourcing.

[DrummerDave]

Has anyone tried successfully to start a import-based muse with multiple products for one niche?



I do that.
I import goods from Pakistan. There is a difference in that they're all from the same manufacturer, but they're different goods all supporting the same niche.
I could never begin to fill 1/10 of a container (I am still a very small company), so my manufacturer ships the goods via air freight (like British Airways Cargo, or American Airlines cargo). It's tremendously cheaper than shipping via UPS/DHL/etc. Still nowhere as cheap as a cargo container, but reasonable.

[TimW]

Gosh...people ASKING for Kamakiri's advice, and to be brutally honest?

I think this is the 4th sign of the Apocalypse...

As to the plan....I sell stuff at retail. If I can offer one piece of advice...make sure WHAT you are selling WILL ACTUALLY sell before going off an ordering a container load of stuff nobody wants to buy.

Yeah, your margins might be lower, or even negative, in the beginning, but if it shows solid promise, you'll make up for it later.

In some places...this is known as "testing" but everyone seems to get all wrapped around the axle over that phrase.

Some products test well on the internet. Some don't. Depends on the product, but if done correctly, I think you can test most things on the net.

[ScottVA]

What is the cheapest way to ship 50-100lbs from China, HK, or Pakistan?

My muse idea would require outsourcing the creation of it overseas (and trust me if I could, I would have it made in the US if it wouldnt increase the price, risk and ROI.)

[phil]

^ Cheapest way to ship would be by ocean freight. Takes about 25 to 30 days from port to port, and then some trucking time, and possibly a few extra days clearing customs.

For 50 to 100 lbs you may find it easier, quicker, and only slightly more expensive to ship via an express carrier such as UPS, FedEx, DHL.

You can ask your supplier to give you a quote for shipping UPS/FedEx/DHL. Could be around $400 to $800, just a guess for this weight. And then you could just add on that price to the cost of the order. It'd be easier for you than working with a separate freight company, plus a customs broker.

Although when your volume increases or you have other special shipping needs, I'd this company, as I've had success with them so far: http://www.expeditors.com/

[TimW]

If you go through UPS/FedEx/DHL it will likely end up in a customs warehouse. When i was importing tactical gear from Israel, the company made the mistake of sending UPS versus US Postal Airmail. Price for UPS wasn't really any cheaper, but I got screwed because a customs brokerage ended up with it from UPS, adn I had about $400 in fees to get the stuff out.

[phil]

These customs hold ups really depend on a lot of things, like the value, the HTS code, the country of origin, and who's putting it through customs.