Is Buying Imported Jewelry in Wholesale a Good Business Strategy?
The global market is on its downward curve. The world economy has not yet fully recovered from the shock it suffered in 2008-2009 in the form of recession. The American economy was the worst hit with many big firms going bankrupt and many people losing their jobs most of which are not back yet. This incident has put restrictions on financial liberties and the lifestyle of people has also changed. Now a radical inclination towards silver made items can be seen amongst people as it is cheaper than gold. So it is not a bad time to start a new business with silver as your key component. A ding to the fact is that financial experts are predicting an all-time high for silver made items in 2011. So taking that into account, setting up a business in trading silver looks like a very good idea. Now the question arises as to what sort of a business is profitable. Importing silver jewelry from elsewhere at whole sale rate and then selling them at a retail price sounds feasible. Importing silver jewelry from Mexico seems to be a great option because they export silver jewelry without the shipping charge.
The silver trading companies in Mexico promise to supply good quality silver jewelry such as rings (for both men and women), pendants, earrings, bangles, pendants, bracelets, cuffs, pins, and necklaces. The reason behind why Mexico can be given preference over other countries is that the quality of the product is much better, the whole prices are very low and the products are shipped duty free.
A comparative study of the silver jewelry prices shows the difference. The prices in Mexico are almost half of what it is in the USA. For example one oz (ounce) silver in America costs nearly $29.070. So for 10oz you need to pay almost $290.70 plus the making charges and other duties. This means that to sell this piece of jewelry the retail value cannot be less than $350. At the same time if these things are to be imported from Mexico then they will cost around $200 including all the duties and charges. When these products are then launched in the market they will be more attractive as they have a good design at a low cost and will make a profit of around $150.
So from the information given above it can be understood that buying silver jewelry in whole sale and selling them in retail can be a profit making business. Buying the materials in wholesale from other countries gives an added advantage, the production cost and labor cost in such countries is very low. This keeps the prices in check, and when they are bought in whole sale the profit margin increases if you decide to resell those same items in retail in the US. Even if the product is sold in retail at a price lower than the market price than too there lies the possibility of making a reasonable profit.
N.B. All figures mentioned here illustrative examples.