Air Freight Costs and Sales Tax

Re: [spiers] Air Freight Costs and Sales Tax


In a message dated 6/10/03 4:21:28 PM, carolfreire@earthlink.net writes:

As I am just starting and testing the products I don't want to ship a whole
container by sea.

***there is no rule requiring that which is shipped surface must be done in
full containers. LCL (less than container load) is not too expensive, it is
merely more expensive. Big biz avoids LCL because they compete on price. We do
not compete on price. ***

I showed some pictures of my products to the retail stores and they liked it,
but I want to get some orders before bringing large quantities to US. My idea
is to get a small order and ship it by air to see how the market respond to
my products

***testing is good... tell us what they say about placing an order with you,
but there is a problem...this test would be invalid... a small order brought
in will show how the market responds to a small order. The small order cannot
support you, nor will it teach you anything about what is required for larger
order. You need to find out if there are enough orders aggregate to cover the
supplier's minimum production run profitably in a workable amount of time.
the only way to do that is to study the suppliers minimum and test to see if
you can make money with enough orders to cover the suppliers minimum... ***


and how well-prepared my suppliers are to attend the US market.

*** You have not determined in advance if the suppliers can support selling
to USA? there are countless million of products that are NOT sold in usa, and
each has a unique reason why not. It would be expensive to learn why any
one, let alone all cannot or will not sell here. Much much better to develop a
solution to a problem you personally experience, and import that from the best
place in the world to have it made. ***

Only after some orders and deliveries I would be comfortable to ship a large
container.

*** I don't think a container load is the issue... a minimum production run
is the issue... but the key is not logistical questions, the key is
customers.***


Does anyone have an idea of transportation costs by air from Brazil to US?
Does anyone recommend a specific air freight company?

***yes, customsbrokers who deal with imports from Brazil have an idea of
transportation costs by air from Brazil to US... and to find the best you can
determine that while researching the best place in the world to have your
product
made... specifically in the directory of US importers. ***

2) Should I consider the sales tax when pricing my products?

***Not the sales tax, that is the retailers problem.***

I know that sales taxes are added to the retail price when the customer pays
for the item. Does it work the same way for a wholesale company?

***No, you are taxed on your sales as it is income, this is something you
strategize with your CPA, in regards to your specific financial
circumstances.***

Should I mention anything about sales tax in my price listing?

***Not unless your competitors do in their "offer to sell", that is the terms
of sale in their catalogs and price lists. (I imagine they say nothing about
it, since it is usually irrelevant).***

John

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