Guerilla Marketing More...

Re: [spiers] Guerrilla marketing more...

Hello
I took your cource even i missed few sessions but after reading all of your e
mails i really appereciate your information.
I am interested importing 100% cotton undergarments ( underwear and under shirts
for men) from pakistan, as per my information goes i think there is Qouta
requirment on pakistani cotton, My Q do i have to get this Quota from US or the
Exporter.
And 2nd Q is , would you advice me to participate in local Trade show with my
samples?
Thank you much
M. Haroon
-----Original Message-----
From: wileyccc@aol.com
Date: Tue, 28 Aug 2001 11:00:00 EDT
To: spiers@yahoogroups.com
Subject: [spiers] Guerrilla marketing more...


>
>
> << Dear John,
>
>
> Thanks for the speedy reply. Here are the answers, in order:
>
>
> The hats are made in China, and I import them FOB Hong Kong. I ship the
>
> fabric to my agent in Hong Kong.
>
> ***Has your supplier ever suggested he might get it the fabric cheaper/better
> than you can?***
>
> Re discounts: I don't have to pay shipping
>
> from HK to the US, as I normally do for my domestic sales.
>
> ***Do you mean in the instance of these foreign orders, or do you mean ever?
> To my mind one always pays for shipping from HK to US (importers always pay
> inbound freight) and NEVER pay domestic delivery to customers...they pay. So
> this sounds exactly backwards, depending on what you are saying.***
>
> Also, my supplier
>
> gives me a discount because they don't have to buy quota for shipping to the
>
> US.
>
> ***Because it is usa-made fabric?***
>
> The sale would be FOB Hong Kong to France or Germany, and the buyer
>
> would be responsible for paying for shipping from HK to Europe.
>
> ***This you did not mention in your original email, and it is the simple
> solution.***
>
> Also, the
>
> buyer asked for a discount, and I normally give a discount to anyone who
>
> orders a large quantity. My definition of a large quantity is 500 pieces and
>
> up. I do that because it is more efficient to ship a lot to one place than
>
> to ship several small quantities to several different places. Plus my
>
> production is cheaper if I order larger quantites.
>
> ***OK, sounds right, if true.***
>
>
> "Importers Prepay" This is great news. So these guys will expect to prepay?
>
> How soon before shipment?
>
> ***With an LC, as they receive the goods. Any other method, it depends. See
> below...***
>
>
> The rough dollar amount is $25,000 for the French, $12,500 for the German.
>
>
> ***sounds too high for Visa/mc...sounds like LC.***
>
>
> What IS the "simple profitable solution?"
>
> ***Part A, you figured out. Ship directly from the supplier to the european
> customer. Very good. Part B is to simply have the supplier bill the
> european customer directly, not you. Then you completely avoid any problems
> with payments, etc, and make money while you sleep. The price you charge the
> europeans is the cost of goods (what you pay the supplier) plus your NET
> profit.
>
> Say you buy these hats first cost at $8 each, add $2 cost for importation,
> and then wholesale in usa at $20 each. Your gross profit is $10, cost of
> goods is $10. Then you take out all of your expenses, and say you net $3 per
> hat net profit to you. Then direct the supplier in hong kong to simply sell
> all of the hats he can at the price of ($8 cost + $3 net profit to you) = $11
> to europeans. In fact, have him push these hats to every customer of his
> worldwide at this price.
>
> In this way, as mentioned, you make money while you sleep, and do not have
> the hassle of letter of credits, etc.
>
> Now, I am sure 2 concerns arise, why would he do this and how do I track him?
> Apparently shipping directly he has already agreed to; so we are just
> wondering why he will bill for us? Well, obviously he has the ability to
> bill now, he does so with you. So you are just directing him to bill the
> customer, not you. And he will do this becuase it is done all the time, it
> is standard operating procedure.
>
> And how do you track him for honesty? Well, is he a crook? Are you working
> with someone who you suspect is dishonest? If so, why? If not, then trust
> him. People in Germany and Hong Kong and Korea get rich delivering products
> to specification on time at a fair price. Honesty is a given, and a minimum
> requirement.
>
> There is a added benefit... if your product ever becomes super successful,
> this factory will have a vestd iinterest iin seeing no one knocks you off,
> since if this happens it is money out of YOUR suppliers pocket. He will use
> local methods to see to it no one rips off your design.
>
> So the simple solution is to confirm this with your supplier, connect the
> europeans and the supplier together, and then take a nap and make some money,
> the same net profit you would have with none of the work and none of the risk.
>
> The only other caveat is this $3 times X sales = income reportable to the
> IRS, even though it is left overseas.***

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