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Re: OT: anyone importing goods from China? Posted by Wil W [Email]  (#1148) [Profile/Gallery]
(more from Wil W) on Sat, 3 Mar 2007 07:04:23
In Reply to: OT: anyone importing goods from China?, JoeJohnson, Thu, 1 Mar 2007 10:32:44 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Just some general business thoughts. If I understand correctly, your product is a BBQ grill that you wish to manufacture in China, and I assume, export to the US market.
Things to think about for your BBQ grill business (in no particular order):
1. Grills are typically low tech and relatively easy to manufacture/assemble.
2. BBQ grills are seasonal for much of US ("Lumpy" sales)
3. They are generally lower margin products.
4. Main product costs will likely be Materials (Metal, paint, etc.).
5. Labor costs may not be too large depending on design/assembly.
6. BBQ grills are generally large , heavy, and lower value added.
7. Shipping large heavy, low margin products from China could kill you.
8. Lead times, WIP, and inventory (esp. on the shipping barge) will tie up cash and limit flexibility.
9. For lower volume, lower margin businesses (niche products); manufacturing in China is often more trouble than it worth.
10. Most grills are manufactured/assembled in US for the above reasons, although the steel is likely imported from China. (Weber Grills)
11. As another has mentioned, check out some US manufacturers/assemblers as they are often competitive in these situations.
I hope this doesn't come across like I am dumping on your idea, I just want to make sure you have vetted your business model appropriately and go in with your eyes wide open.
Btw, I am an Independent Venture Consultant. I/we basically provide strategic, financial, management, market, and operations advice to new ventures and entrepreneurs.
I hope I've helped.
Wil W
'02 Aero Wagon
'89 SPG
posted by 71.210.130...
, Sat, 3 Mar 2007 07:04:23 <-- Viewing This Message
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