Importing Electronic Items for resale

Hey All,
I've found an electronic product that i think would do well on the irish market. It's not currently stocked in any shops. I've rang alot of shops and none of them stock it.
It sells on the internet for €131 (thats the cheapest, Highest price would be €150, They include all taxes and shipping all within the eurozone)

I can bulk buy the product for €60exVAT a piece. and was planning on reselling to shops.

What would be a realistic price for shops to sell this item for?
What mark up should i charge the retailer and what markup should the retailer expect to charge?

Advise and opinions would be greatly appreciated.

Much depends on the volume that the retailer sells and the credit terms agreed.
If some guy sells 100 units a week and pays for them in advance then 10-20% turns you a profit. If another guy sells 10 units a month and pays for them 30 days after he sells them then you need 50%+ to make a real profit.
Who takes the risk and when do you get paid are the biggest factors.

What credit terms (if any) can you get from your supplier and what credit terms do your customers want? Remember that most start-up companies fail because of cash-flow problems.

Thanks for the advise. I'm getting 20 days credit from the supplier. Doesn't seem like a lot from your advise on generally doing business.I may have to renegotiate the credit terms with the supplier.bbb

kikel said:

Thanks for the advise. I'm getting 20 days credit from the supplier. Doesn't seem like a lot from your advise on generally doing business.I may have to renegotiate the credit terms with the supplier.bbb

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To be honest you are lucky that you are getting any credit at all for the first few shipments.

On a note general note what's to stop people buying the same product on line from the manufacturer or from another supplier?
Exclusivity agreements for distribution within regions of the EU are possible illegal and almost impossible to enforce. Even if you have a water-tight case do you have 100K to spend on lawyers? Bottom line: don't set up a business which promotes a product that can be bought from other at a lower price.

One point to note if you import an electric product check out the WEEE charge on it.If you are buying it from outside the EU check out the duty.You should also make provision in your costings for the cost of repairs or replacement of products which go faulty.I have a lot of experience ot the electrical sector and in general retailers need min 30 day monthly account but more common is 60 day monthly account.In your cash flow I would say you should recon that the Debtor days will be 75 on average.

You will also have to ensure that they are CE marked.

Thanks all, lots for me to consider.