STARTING AN IMPORTING BUSINESS FROM HOME

STARTING AN IMPORTING BUSINESS FROM HOME

Carefully select and buy a product or line of products directly

from an overseas source for resale, eventually on an exclusive

basis. The ultimate objective is to offer products that you can

buy for an especially low price that are not available elsewhere,

at least at this time and this price.

This business requires a good deal of time and effort to find the

right overseas sources and products, and then have them shipped

to you. The product must generate enough revenue to be

profitable, so it should either result in a large mark-up per

sale or sell in sufficient quantity to provide a good return.

For these reasons, it is suggested that beginners first

concentrate on products that have already been imported -- to

learn about marketing without unnecessary risking a large initial

investment.

There are many U.S. sources for imported products, and it is easy

to specialize in a single product or line. However, it is almost

impossible to get exclusive rights or even territorial protection

because most importers sell to anyone with the money to buy.

By checking with many importers, you should be able to find

something that you believe has promise. Even if you don't have

exclusive rights, you will learn how to market it and accumulate

a clientele that will help you decide what to import, hopefully

for your waiting buyers.

Buying direct from foreign countries is time consuming and

requires a good deal of paperwork, but it is not nearly as

difficult as one might think.

Otherwise there would not be so many importers. For some

purchases you need an import license, and you will often have to

pay import duty.

This is a good reason why it is a good idea to find out just

which countries are currently "in favor," Where their goods are

taxed lightly, if at all. Import requirements, procedures and tax

rates vary drastically with the country of origin.

To get an idea of what to expect, write to the Bureau of Customs

(see Business Sources) and ask for their booklet "Rates of Duty

for Popular Tourist Items" When you are ready to start importing

your own merchandise, it would be wise to consult an attorney

that is well versed in import and international law. You might

not need his advice, but it is still a good idea to let him look

over your contracts and agreements.

It tales time and patience to become a successful importer, but

the rewards can be significant for one who is both shrewd and

patient.

As a small importer looking for an exclusive, you will probably

want to concentrate on finding a small manufacturer in the

country of origin who will agree to let you serve as his

stateside representative -- at least for a time.

An agreement can be made with a wide variety of possible terms,

the only criteria being that you both agree to them. Remember,

however, that other countries have different customs and legal

systems. For example, "sterling" silver does not mean the same

thing in every country!

The best way for a relative beginner to start is to contact trade

representatives, usually through the appropriate embassies, and

ask them for lists of manufacturers who might have what you want.

These representatives will often help you get started because

they are interested in promoting the sale of merchandise to the

United States.

Correspond with some of the more promising companies; find out

their prices, terms and obtain samples (by air; steamer may take

2 months). Now is the time to clarify any possible

misunderstandings -- before you commit to a contract. Make sure

they understand the quality you require, and that you understand

their policies. Find out who else has dealt with this company and

contact them for a reference.

When satisfied with the products, terms, shipping procedures and

you know the import tax situation, have your attorney check the

contract, then deal!

There may still be problems -- any business can expect a snafu

here and there -- with shipments, breakage and even payment

problems. These are some of the reasons that merchandise that is

imported directly is so much cheaper.

The other reason is that when you import something, you usually

have do so in quantity. If it sells well, you are on cloud nine;

if it doesn't -- well now you know where jobbers get their

merchandise, and how they can sell it so cheap and still make a

profit! This is why some importers use the following variation:

You can sell imported goods without importing them. They are

available from importers, jobbers and several wholesale houses.

Sometimes excellent buys can be made on merchandise that

someone could not sell. Maybe time ran out on them, it was the wrong

market, or perhaps they didn't market them wisely.. Just because

one entrepreneur cannot sell a product is not proof that another

won't get rich on the same product!

The advantages of buying imported goods domestically sometimes

outweigh the extra cost (they are not always higher, though).

There is always someone who "gets lucky" -- they spot a potential

fad, promote it before anyone else, or find new ways to market

things had problems with.

The most dangerous pitfall in this business is to stock up on

something that you can't sell. The way to avoid this danger is to

test market before getting in too deep.

NEVER buy products in quantity just because YOU like them. Unless

you are that one in a million, the public will often disagree

with your personal tastes, which means you could lose a bundle!

Order a reasonable stock with the (written, if necessary)

assurance that you can buy larger amounts at the same (or lower)

price, and get immediate delivery.

Many suppliers (both here and abroad) will be happy to work with

you when they understand you are working on a promotion that can

be profitable to both of you.

BUSINESS SOURCES

SPECIALTY MERCHANDISE CORP., 9401 De Soto

Ave.,Chatsworth, CA 91311-4991. sells imported merchandise to

membership (cost, about $250). Mostly novelties and giftware. Will

drop-ship.

GALAXY ELECTRONICS, Box 17, Blythbourne Station, Brooklyn, NY

11219, 800/221-8294. Imported merchandise; heavy in radios,

novelties; good prices. $50 minimum purchase.

JZE ENTERPRISES, 2912 Springfield Rd.,St Frances Village,

Bacolod City, Philippines. Catalog of importable merchandise

(carvings, batiks, rattan) - $5, refundable.

CHINA CONSULTANTS INTERNATIONAL, Guardian House 905, #32

Oi Kwan Rd.,Happy Valley, Hong Kong. Free book, "Advertising and

Selling to the People of China."

INTERNATIONAL INTERTRADE INDEX, Box 636, Federal Square,

Newark, NJ 07101. Newsletter that lists new import products.

TAIWANESE EMBASSY, CCNAA, Economics Division, 4301

Connecticut Ave.,Ste 420, Washington, DC 20008. Information about

products to import from Taiwan.

INTERNATIONAL NEW PRODUCT NEWSLETTER, 6 St. James

St.,Boston, MA 02116. Newsletter about new import products.

GERMAN AMERICAN CHAMBER OF COMMERCE, 666 5th

Ave.,New York, NY 10019. Information on importing products from

germany.

INTERNATIONAL TRADE COUNCIL, Box 73, Centro Colon, San

Jose, Costa Rica, CA 1007. Trade council for 18 Latin American

Countries; free list of 20,000 products and companies.

CHEU LAI YING, Block 48, Tampines Ave.,5 #06-270, Singapore,

republic of Singapore. Private contact for goods from Singapore.

ITALIAN TRADE COMMISSION, 499 Park Ave.,New York, NY 10022.

Information on importing products from Italy.

GENERAL CHAMBER OF COMMERCE, Rose Mansion, 162 Hsin Yi

Road, Section 3, Taipei, Taiwan. Good place to check on products

from Taiwan (as well as the embassy).

BRITISH TRADE DEVELOPMENT OFFICE, 845 Third Ave.,New

York, NY 10022. Information on importing products from England.

COORDINATING COUNCIL FOR NORTH AMERICAN AFFAIRS,

Commercial Div.,20N Clark St.,19th Floor, Chicago, Il 60602.

Information on importing products from Taiwan.

O.H. URIHEULA, P.O. Box 40160, 0007 Arcadia, South Africa.

Exports African arts, crafts and toys.

S.H. LIM, Litaco Mfg. & Trading, Jurong East P.O. Box 12,

Singapore 9160, Republic of Singapore. Exports consumer goods,

stamps, asian arts and crafts.

DOVER PUBLICATIONS, 31 East 2nd St.,Mineola, NY 11051.

Discount books, picture postcards, clip art and stencils. Excellent

source for accessories; good prices.

QUILL CORPORATION, 100 Schelter Rd.,Lincolnshire, IL 60917-

4700, 312/634-4800. Office supplies (probably best mail order

prices).

NEBS, 500 Main St.,Groton, MA 04171, 800/225-6380. Office

supplies. Good, fast service.

IVEY PRINTING, Box 761, Meridan, TX 76665. Letterhead: 400

sheets plus 200 matching envelopes - $18.

ZPS, Box 581, Libertyville, IL 60048-2556. Business cards (raised

print - 411.50 per K) and letterhead stationery. Will print your

copy ready logo or design, even whole card.

SWEDCO, Box 29, Mooresville, NC. Three line rubber stamps - $3;

Business cards - $13 per thousand.

WALTER DRAKE, 4119 Drake Bldg.,Colorado Springs, CO 80940.

Short run business cards, stationery, etc. Good quality, but no choice

of style or color.