Furniture importing
What happens:
Furniture is made overseas, and imported into the USA
Keys to success:
Need to fill sea containers
Summary of expenses:
Container cost + packaging + importing fees + warehouseing + tradeshow + catalogs, etc...
Typical mark-ups:
Factory price + 30% for logistics + 35% for wholesaler markup (cover tradeshow, catalogs, salespeople, overhead + profit of 5-6%) = wholesale price
Wholesale price x 250% = retail price (that people normally pay at the store)
Example:
Factory price = $100 + 30% logistics = $130 to arrive in USA + 35% wholsale markup = $175 wholesale price x 2.5 = $450 (what you pay in the store)
So, if you see a table at the store that costs $450...then you know that the factory actually is making only $100. All the rest is going to store + wholesaler + logistics.
See also:
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