1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

my dad's business is failing

Discussion in 'BlackHat Lounge' started by theseodude, Feb 12, 2013.

  1. theseodude

    theseodude Regular Member

    Joined:
    Jun 25, 2012
    Messages:
    303
    Likes Received:
    88
    Hello

    I posted about this before but I want to provide more details

    my parents came to America a few years ago. ever since moving here, my dad hasn't had a stable job. Well, what he does is he buys electronics from wholesalers, he puts them in his car, and he goes around the city, distributing them to retail stores. now, on paper, this looks like a great job with a lot of money. but he makes no money. he mostly deals with video game related items, like nintendo wii adapters, ps3 controllers, ...he buys like 10 for $30/each and sells 2 pcs to one store for $31 each, another 4 pcs to another store, another 2 pcs to another store. there is no profit in this, with the price of gas, and people breaking things and trying to return them, he makes no money.
    so I am wondering if you guys have any ideas on what he could sell. he is a very motivated person and he is currently looking to start selling something else. he will try anything. I was thinking of buying dvd sets from china and see if he can sell them? i used to sell dvd sets on ebay a long time ago before everything got difficult.
    so do you have any idea what he could sell?

    Update: so why isn't he selling on ebay? after ebay fees, paypal fees, and shipping cost, he would end up with no profit. I think his purchase price is not low enough, I mean what he can buy for $7, is being sold on ebay for $7.50 with free shipping. i think it's impossible to compete with the chinese sellers who will sell their items for next to nothing.
     
    Last edited: Feb 12, 2013
  2. Danny1111

    Danny1111 Elite Member

    Joined:
    Jul 5, 2011
    Messages:
    2,096
    Likes Received:
    2,480
    why isn't he just selling on Ebay - forget selling 2 at a time etc - time = money.

    also he should be advertising on Craigslist... listing on Amazon

    None of these are my specialty - so maybe someone who does this will have better ideas how to use
    them effectively.
     
    • Thanks Thanks x 2
  3. arsaltheman

    arsaltheman Power Member

    Joined:
    Aug 2, 2011
    Messages:
    536
    Likes Received:
    263
    Why not try to sell the products on Ebay??? It may work out and it will be easy too...

    Just my 2 cents...
     
  4. Jackmitch

    Jackmitch Regular Member

    Joined:
    May 27, 2012
    Messages:
    200
    Likes Received:
    84
    Location:
    GMT+8
    Your description sounds like there is barely any profit at all. Why not try a regular job instead? If I could move to America I would not mind working any kind of job at all. The way I see it, Anybody can make a good life for them self in that country if they worked even as a waiter or salesman at walmart or other similar things; firemen and policemen seem to make enough to live decently as well, unlike third world countries where these are jobs for the lower middle class and they must always be corrupt to actually see any decent money. Land of opportunity right? It's only the white guys who say making that much money is not enough but it isn't what you earn that matters, it's what you save.

    Or maybe your dad is just really passionate about selling. Maybe try doing exactly what he's doing now except starting up a website where he can put up catalogs of his inventory and so that ordering products is simpler?
     
  5. SEOTrafficBoost.com

    SEOTrafficBoost.com Newbie

    Joined:
    Jan 13, 2013
    Messages:
    6
    Likes Received:
    9
    Location:
    St.Louis, MO
    Home Page:
    I've never actually tried this but it's always been in the back of my mind. Try checking craigslist in the "free" section and scoring some decent stuff and turn around and sell it on craigslist to make a small profit. I figured if you could find stuff thats relatively close to you and maybe if some buyers can come to pick it up then there would be a profit to be made. Sounds plausible.
     
  6. WorkHardL0veLife

    WorkHardL0veLife Regular Member

    Joined:
    Mar 14, 2011
    Messages:
    219
    Likes Received:
    423
    Yeah he should put all his shit up on Ebay , Amazon and Craigslist multiple times a day
     
  7. pnvhq

    pnvhq Junior Member

    Joined:
    Jan 28, 2013
    Messages:
    165
    Likes Received:
    78
    Location:
    United States
    I'm not exactly sure why your father thought this was a viable business strategy. Miniscule volume and razor-thin profit? Good luck. Maybe that model worked wherever he came from, but I just don't see that working here. Honestly, he should work on getting a minimum-wage job to start. How are his English skills? He should be aiming to work his way up to a job that can offer him some health benefits. I'm assuming he's starting to get older, so the stability of an income and the safety net of being covered if things go way south is important.

    Then, if he's feeling enterprising, he can try to build his side business. And like many have said, why sell to retailers? He's essentially added an extra middleman that offers no value in the whole sequence. By selling directly to consumers, he can try to undercut the price of some retailers (by keeping the overhead very low on his part) or he can toss in a free repair service or whatever if he has the necessary skill-set.
     
  8. radarsurge

    radarsurge Regular Member Premium Member

    Joined:
    Mar 21, 2012
    Messages:
    491
    Likes Received:
    141
    Location:
    The Windy City
    craigslist is a better idea, + the people will come to him.
     
  9. calebmann

    calebmann Power Member Premium Member

    Joined:
    Sep 12, 2010
    Messages:
    541
    Likes Received:
    298
    Occupation:
    FULL TIME INTERNET
    Location:
    Digitopia
    what a horrible way to make money. well with the work ethic he has, if he studied up on bhw he could be making much more. I agree with the ebay and craigslist ideas
     
    • Thanks Thanks x 1
  10. Nauthiz666

    Nauthiz666 Senior Member

    Joined:
    Nov 14, 2008
    Messages:
    851
    Likes Received:
    80
    He should offer a service instead of purely sales and product. If your dad knows anything about systems, computers, gaming etc, he could offer mobile and in shop repair services. Lots of places in my city charge $50+ hr for said services etc. Post ads on craigslist etc.
     
  11. davids355

    davids355 Jr. VIP Jr. VIP Premium Member

    Joined:
    Apr 25, 2011
    Messages:
    8,777
    Likes Received:
    6,308
    Home Page:
    If he is selling to stores I assume they are selling them to the consumer for a greater margin, seeing as he is only selling in small numbers anyway, tell him to sell direct to the consumers.

    And also, stop bring negative - you are saying ebay won't work without even trying. You need to have a positive attitude.
     
    • Thanks Thanks x 2
  12. Hootz

    Hootz Regular Member

    Joined:
    Oct 18, 2012
    Messages:
    214
    Likes Received:
    118
    Location:
    United Kingdom
    What about trying to increase the perceived value of what he is selling?

    For instance, he's reselling a fairly cheap PC. Well what if he sold a PC but also included full setup and technical support and later on upgrades and repairs if they need it. This is all presuming he's good with electronics which I am since he's choosing to sell them.

    This way he can increase his profit margin and keep the customer for repeat business. Then there's upsells, later on a new PC user may want an external hard drive, blank DVDs and so on.

    Think like that rather than just dropping a computer off at someone's house and making a few extra dollars in the process.
     
  13. bigbong

    bigbong Jr. VIP Jr. VIP Premium Member

    Joined:
    Dec 1, 2011
    Messages:
    247
    Likes Received:
    251
    Skip one chain upstream and import directly from China, then skip one chain downstream and sell directly to consumers.

     
  14. Mr.BL

    Mr.BL Registered Member

    Joined:
    Feb 1, 2012
    Messages:
    90
    Likes Received:
    18
    Home Page:
    if he wants to sell something, give him a stack of his CVs, and tell him to sell his labor.

    seriously, he is making 3.33% margin, are you for real, that's horrible.
     
  15. Reyone

    Reyone Elite Member

    Joined:
    Sep 30, 2012
    Messages:
    1,577
    Likes Received:
    1,277
    Occupation:
    Hunter
    Best advice would be for your dad to create an account in BHW and start banking hardcore
     
  16. theseodude

    theseodude Regular Member

    Joined:
    Jun 25, 2012
    Messages:
    303
    Likes Received:
    88
    hello,
    I have briefly looked into importing form China, but it seems that prices would not be much lower unless you buy a lot, like 1000 pcs. my dad cannot make this kind of investment, especially since the prices for electronics are so volatile, one day you might buy something for $10 and the next day the price might drop to $5. it's too risky to buy wholesale like that. and there is the problem of space, where is he going to put 1000 pcs? for these reasons, he can only buy like 10 pcs at a time.
     
  17. silverace

    silverace Newbie

    Joined:
    Feb 21, 2011
    Messages:
    29
    Likes Received:
    9
    Why doesn't he try a "normal" job instead of selling stuff with that "profit" margins?
     
  18. InfinityAI

    InfinityAI Jr. VIP Jr. VIP Premium Member

    Joined:
    Jan 15, 2010
    Messages:
    461
    Likes Received:
    570
    When you don't have a lot of money to invest, why doesn't he start a service business (if he doesn't want a job). I mean products you're going to need to buy enough volume so that they're cheap enough but with services? If I only had a couple hundred dollars, I'd hit up the local sam's club, go to a busy street corner, and start making hot dogs. The mark-up on food is pretty healthy and people will come back to you for the convenience.
     
  19. evilclown

    evilclown Senior Member

    Joined:
    Jul 31, 2012
    Messages:
    805
    Likes Received:
    575
    Occupation:
    Party Clown
    Location:
    Clownville
    He needs to find a better wholesale price, the people he is buying from are not leaving him meat on the bone. He needs meat on the bone. How can you help? Well research competitors of the wholesaler, bargain with them. If your pop can demonstrate he is moving merchandise he can ask for prices. Some wholesalers will give you super discount prices if you buy in bulk.

    Also your pop needs to work his way on profitable hot items. What games are coming out soon? Dead Space 3, Grand Theft Auto V, etc. He can go online and see what consoles have the most reserves, buy items with this themes on as players are fanatics they will love to have gadgets of the hottest item. And don't buy 2 of this and 2 of the other and 2 of the other, he needs to move them by boxes to really earn. I my self been working the last 2 years to get directly on retail. Enough said.
     
  20. Keesief

    Keesief Junior Member

    Joined:
    Dec 21, 2011
    Messages:
    121
    Likes Received:
    30
    Location:
    Netherlands
    I think there's a wholesale section on BHW, I've seen some seller of cdkeys (for games windows etc.) I once tried selling Microsoft word keys in a dutch ''ebay'' variant. I had about 5 clients per week but I didn't go trough with it because I was afraid windows would chase my ass!

    If you wanna give it a try, pm me I have the website somewhere on my computer.
     
    Last edited: Feb 13, 2013