China Wholesale: What Price Is The Right Price To Pay?

Buying china wholesale product sources is a wonderful way to make a nice income with an online business, working from home, but how do you determine if a quoted price is the right price to pay?

One thing you should realize right up front is a basic principle of buying for resale: You make your money when you buy---not when you sell.

What Does This Mean?

Okay, let's show an example: Say you buy a flat screen TV for $250 from a wholesale product source in China. You sell the TV for $260. So, you've made a profit, right?

Wrong.
Why not? Because it's highly unlikely that your operating costs are going to be low enough to allow you to make a profit on selling a product for just $10 more than you paid for it.

Think about it. You almost certainly have some expenses incurred in running your business, even if it is a home business. For instance, here are some typical business expenses:

    Computer
    Computer accessories and supplies
    A bookkeeper or bookkeeping software
    Office supplies
    Fees for sale of products on Amazon or eBay
    Cost of maintaining your own website if you have your own online store
    Advertising and promotion of your business
    And more

Now, let's say that your expenses, being a home business, are fairly low and you only have to sell 40 flat screen TVs a month at $10 over what you paid for each one to cover your business costs. Would you be in good shape then?

No.

Here's the kicker---even if you made enough profit to cover your home business expenses…what do you plan to live on? How will you pay your bills and living expenses if all you have done is make enough profit to break even on the cost of running the business?

Obviously, this won't work.

So, in order to have a successful home business in the resale of wholesale products you source from China, you will have to buy low and sell high. Or at least high enough to actually earn a living.

Now, let's rearrange the scenario shown above and say that you bought a flat screen TV for $200 and sold it for $350. Provided that your expenses were halfway reasonable in running your business and you don't want to live beyond your means, this should assure you of making a good enough profit to be a success in your home business. You've covered your business expenses and are still $5600 to the good if you sell ten TVs a week.

That's more like it, isn't it?

So, to make sure you come out ahead, you have to find products at a low  buying price with a high selling price for a decent profit margin. To find out what you can expect to get for a product, check Amazon and eBay to see the average selling price of the same or similar item.

Next, find the lowest price you can possibly get on that product from a wholesale China product source and do the math to see if it will net you a good enough profit.

Bear in mind that buying wholesale from China is the same as buying wholesale anywhere in that the price goes down as the number of products in your order goes up. In other words, you can safely assume that you will get a cheaper price if you buy 100 flat screen TVs than if you only buy 2 or 3.

This makes sense and is basically a given.

So, for the smaller reseller or someone just starting out in business, it's imperative that you find a China wholesaler such as Chinavasion that buys in enough quantity so as to be able to offer you great prices on smaller volume orders.

Chinavasion is your one stop shop for the best wholesale prices anywhere! Check it out today and browse their selection of low priced, high quality items available for you to buy low and sell high!

Since buying more means cheaper. Thankfully, the global China wholesale leader Chinavasion buys in bulk itself and allows smaller sellers like you to purchase in lesser quantities and still provide a great wholesale price. Drop by Chinavasion.Com or paste this link into your browser: Http://Www.Chinavasion.Com/