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Question on retail business?


I am contemplating to get into the retail trade, but I do not have much experience in it.

I am not planning to do THIS particular business, but let's speak hypothetically.

If I plan to set up a shop selling computer products, and I sell material ranging from thumb drives and data cables to motherboards and computer casings, how much of each item do I need to order from the supplier?

For example, thumb drives and floppy drives are hot items. Hence, I will most definitely need to order them in bulk.

However, items such as motherboards and computer casings are not so sellable. They can only be sold to people who needs replacements. Hence, we do not need to order them so much. The same can be said of RAM cards.

Therefore, are we able to only order a few pieces of motherboards or comouter casing at one time. Will the supplier entertain such requests? For example, can I only order 5 to 10 sets of motherboards at one time?

If I were to order too many motherboards and I can't sell them off, I will be stuck with a lot of unwanted ware when the motherboards become outdated.

The other day, due to the popularity of the book Harry Potter, my aunt ordered 500 or so copies for her shop. They sold like hot cakes. Somehow, the supplier also persuaded her to purchase an unknown children's story book, claiming they were also popular. She ordered about 100 copies and she is still stuck with them.

My question is this. Can we order small quantities of a cerytain product from our suppliers? Will they entertain such orders? For example, can we order 5 DVD Rom or 5 motherboards? Will suppliers sell such small amounts?

I am using computer products as an example only. Don't get the wrong idea. Thanks.

Since you don't have any experience get some by working for a successful business and see how they do things. Why take chances with your business?

i couldnt be botherd 2 read all that

well you could still get them as a non-bulk item however, when it comes to cost, they'll charge more. Have you asked about consignment? They'll give you certain numbers of motherboards or other items and you will only pay them when you've sold them.

Most suppliers will require you to buy in certain quantities. The quantities will vary depending on factors such as the industry, the market, price, their company's supply policy, your business status etc. It seems that you do not know very much about retail and arguably the second most important factor in retail behind cashflow management, namely inventory management. I strongly urge you to gain some knowledge in inventory management before you start your own retail business. You need to understand your own working capital needs, the market, your suppliers and your customers' needs to manage your inventory effectively.

The best way to order is to , firstly see what the turn around time from order to delivery

Base your business , on what you know you can sell , without holding to much stock , that way if a customer wishes to buy something you do not have in stock , not only can you get the customer his or her item within a few days ,

If you whould like email me , for futher idea's

Why don't you try drop-shipping and/or maybe set up an ebay shop? That way you can get a feel for what sells and how the mechanics work and ease yourself into the role and maybe build up a bit of capital. Its a low-risk option too and allows you to keep your day job until you get on yr feet. Start small thats my motto.

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