Re: [spiers] what to do with the sample
John...
I needed to send in sample of my product for duty-rate
classification in New York with the Customs. I have looked for this
item through NTDB website, and no result. I need to know the duty
impact for this product to be considered in my costs.
***Sending something for a binding ruling to Customs is costly and time
consuming. Getting an HTS number ought not be too hard, although one may be
faced with a challenge of "is it this item at 8%, or that at 10% duty". In such
instances, since we compete on design and not price, we just go with the worst
case scenario (the 10% duty) and find out the answer when we actually bring in
our first shipment.***
I will offer to pay for the samples, since I only need about 6x6
inch of cloth to submit to Customs. I dont know the price for a
sample yet. I will not be asking a big shipment since this is only
for research. Is this best to do?
***Sure but I imagine they will give you a 6x6 piece free!***
The sample will be coming from Asia. I am considering opening an
account with FedEx so that I can arrange the shipping to be
prepaid. Is this a good way to go? Is there another option?
***This is cleanest, fastest but the higher cost. Air mail costs less, but is
more hassle. In the long run, the price difference is small.***
Do I have to find out how this sample package will go through
customs? Or will FedEx take care of that? It is kind of "putting the
cart before the horse". Perplexed.
***Fedex boufght a huge customsbroker so they can handle all that themselves
now. The samples will just show up at your door.***
John
Thursday, December 11, 2003
what to do with the sample
what to do with the sample
John...
I needed to send in sample of my product for duty-rate
classification in New York with the Customs. I have looked for this
item through NTDB website, and no result. I need to know the duty
impact for this product to be considered in my costs.
I will offer to pay for the samples, since I only need about 6x6
inch of cloth to submit to Customs. I dont know the price for a
sample yet. I will not be asking a big shipment since this is only
for research. Is this best to do?
The sample will be coming from Asia. I am considering opening an
account with FedEx so that I can arrange the shipping to be
prepaid. Is this a good way to go? Is there another option?
Do I have to find out how this sample package will go through
customs? Or will FedEx take care of that? It is kind of "putting the
cart before the horse". Perplexed.
Any suggestion are welcome. Thanks.
new product development
Re: [spiers] new product development
In a message dated 12/11/03 3:08:58 AM, johnkuo@hotmail.com writes:
<
I've found a few hand-made products in the US so I sent some samples
to my trading company in Hong Kong for price quotes.
***How come? Name the stores who told you they would buy this, let alone
said it was a good idea and does not exist... what value are you providing in
the marketplace? Let's get the premises solid...***
They replied by asking if I want to have the items hand-made to
produce *exact* replicas or with tooling for mass production. They
also asked what quantity and FOB HK target price I have in mind so
they can work with the factory on pricing.
***What does the NTDB tell you other importers pay for similar items?***
Let's say this hand-made
product in US retails for $30. What is a good *retail* price for it
with mass production (and maybe hand-made in China)?
***My products are always more expensive, so I would assume my price would be
higher... but again, my guess is you are assuming that there is money to be
made bringiing in cheaper something already being sold in USA. Maybe so, but
that business is strictly big business. We never have the economies of scale
to pull that off.***
Maybe we can work
backwards and figure out a reasonable FOB price?
***Well, see how confused this gets if the premises are off track? Normally
one works forward to make a price, not backwards.***
What should my profit
margin be?
***Normally whatever pays you about $250 per hour for your work, but check
with Robert Morse and Associates Guide to Key Business Ratios for the markups in
your industry. ***
What would the retail price be?
***that is your customers biz, you just give them your price.***
I think an equation would
look like this:
FOB = Retail - (Freight + Tax + my markup + retailer's markup)
Now I am completely lost because we have so much unknown. To get
started I would need to know the Retail first and work backwards.
Please help!>>
***My help would be this: forget about this, save yourself time and money.
And ask yourself, "If I could do any business I want, what would it be?" What
would you truly love to do? Then find a problem in that field, and work out a
solution.... you know..just what I lay out in the course.***
JOhn
Wednesday, December 10, 2003
new product development
Hi John,
I've found a few hand-made products in the US so I sent some samples
to my trading company in Hong Kong for price quotes.
They replied by asking if I want to have the items hand-made to
produce *exact* replicas or with tooling for mass production. They
also asked what quantity and FOB HK target price I have in mind so
they can work with the factory on pricing. Let's say this hand-made
product in US retails for $30. What is a good *retail* price for it
with mass production (and maybe hand-made in China)? Maybe we can work
backwards and figure out a reasonable FOB price? What should my profit
margin be? What would the retail price be? I think an equation would
look like this:
FOB = Retail - (Freight + Tax + my markup + retailer's markup)
Now I am completely lost because we have so much unknown. To get
started I would need to know the Retail first and work backwards.
Please help!