schw84 Posted May 11, 2006 Share Posted May 11, 2006 could some one try telling that to the super markets 10 yrs ago you got ?1 a kilo for pork you still only get ?1 a kilo how does that work??? aparently we are only 30% sufficent now if something went wrong in this country there would be choas!! this country cant survive on insurance for ever Quote Link to comment Share on other sites More sharing options...
Tractorman810 Posted May 11, 2006 Share Posted May 11, 2006 well said amrky,i would sooner buy at a standard price from a good dealer than buy cheap once or twice and get poor service and no fall back ect, i do like a bargin thats true,but only with the saftey net behind it so to speak,its more people jumping on the band wagon making a couple of quid per model quick profit as they have seen ne wstuff,than knowing what they are selling Quote Link to comment Share on other sites More sharing options...
Brewingale Posted May 11, 2006 Share Posted May 11, 2006 what is best, selling 10 items and make 10 quid or selling just one of them, make 10 quid and still have 4 in stock, now let me think...... Business is about turnover of stock not having poundnotes on shelves. sorry to dissagree but it sounds good sense to me. Quote Link to comment Share on other sites More sharing options...
JC Posted May 11, 2006 Share Posted May 11, 2006 what is best, selling 10 items and make 10 quid or selling just one of them, make 10 quid and still have 4 in stock, now let me think...... Business is about turnover of stock not having poundnotes on shelves. sorry to dissagree but it sounds good sense to me. Now thats a contradiction in itself..... Better to sell one and make ten quid than five and still only make ten quid is my theory, if the stock doesn't perish and its paid for there's no problem if its sat on the shelf a few months. The secret is to find the happy medium, where you sell lots of your product but not at rock bottom prices. This way you have buying power and a good profit margin. Then again we all have different approaches to business, Personally I work for myself and not the bank and I'm glad to say they pay me for the priveledge of me banking with them every month and not the other way around. The only reason a bank is pleased at high turnover is because high turnover of stock = more bank transactions = more bank charges....... Any bank manager will tell you that.... as long as you're not a cutomer of his that is! Quote Link to comment Share on other sites More sharing options...
Lord Ferguson Posted May 11, 2006 Share Posted May 11, 2006 what is best, selling 10 items and make 10 quid or selling just one of them, make 10 quid and still have 4 in stock, now let me think...... Business is about turnover of stock not having poundnotes on shelves. sorry to dissagree but it sounds good sense to me. I see you havn't put your age on your profile so I am not sure how to answer this question without sounding patronising... so please forgive me if I do - I TRULY mean to cause you no offence... The KEY thing for any business is profit.. turnover has to be secondary... using your analagy it is best to sell one item at ?5 profit than 5 tiems at ?1 profit - The obvious factor here is there are generally less costs involved in handling one transaction for the same profit than there is in selling the 5 items at a much reduced margin... In fact if you scaled that up most business models would show you that it is probably better to sell (pro-rata) one item at ?5 profit than perhaps 10 items at ?1 profit - chasing turnover would not impress a bank if you were looking to borrow money. I think the point of this post appears to be that if UH set a R.R.P. then the trade should stick to it for SINGLE purchases - the discounts that importers/wholesalers give (if at all) from the trade price is ALWAYS intended to be the sellers increased profit margin... and is NEVER aimed at giving the punter (customer sorry ) It's a fact in our industry (most industries, if not all) that as your business grows your costs grow disproportionatly to your increase in turnover... and hence your profit margin has to increase relative to these new costs... to give you a live example... When my company had a T/O of say ?500k PA we could survive on a gross margin of 34% (and do nicely thanks very much ) - Now we turnover about ?2.5m PA and NEED a Gross margin of 42.5% just to pretty much reach break even on our net bottom line.... Like I said above... I hope I havn't offended you PS - All donations greatfully received - I can send you my paypal account via PM for any "gifts" you may wish to send me PPS - Can't be arsed to look back for spelling / grammer - so sorry.... PPPS - Can't bloody well spell anyway so PPPPS - and I want to go home... my dinner is cooking Quote Link to comment Share on other sites More sharing options...
SPN Posted May 11, 2006 Share Posted May 11, 2006 I have ?5. I buy 5 widgets costing ?1 each. If I sell the 5 widgets within 7 days for ?1.20, I now have ?6.00 I reinvest in 5 new widgets and repeat the process another 51 times. At the end of the year I have ?57. If I price the widgets at ?2.00 I am unlikely to sell them very quickly. While I may make my ?1.00 profit on the first sale, I also have to factor in the opportunity cost of having my money tied up in slow moving stock, and the best expression of this is the fact that I will prolly have to sell the last one or two items for below cost to liquidate them. The more times you take a margin on your capital, the better the return you are making on your capital. Quote Link to comment Share on other sites More sharing options...
THEBRITFARMER Posted May 11, 2006 Share Posted May 11, 2006 I see where Marky is coming from and also where SPN is coming from. It's all well and good having 5 combines on the shelf with the potentional of ?15 profit on each, but if people aren't buying them there is no profit at all and you are still paying to store them. It also depends on what you are selling, my mum sells seafood and there for has to have a quick turnover rate as it would spoil but she also needs to make a profit....it is all a balancing act Quote Link to comment Share on other sites More sharing options...
Tractorman810 Posted May 11, 2006 Share Posted May 11, 2006 to me what is really driving down uh prices is all the people jumping on the band wagon at the mo,way to many non tractor people are buying them up and selling on,just look at what some of the sellers usually sell on ebay,then you suddenly see they have 10 mtx'x for sale, the real prob lies with uh to some degree,selling at trade to anyone, and every one,like marky first said sell to long established dealers only,, Quote Link to comment Share on other sites More sharing options...
Brewingale Posted May 11, 2006 Share Posted May 11, 2006 preciseley tractorman, my point entireley. Im glad somone has grasped the nettle, rather than get bogged down with detail. Quote Link to comment Share on other sites More sharing options...
SPN Posted May 11, 2006 Share Posted May 11, 2006 ...... and what about the punters? I can buy models in the US with the same number after the $ as UK dealers have after the ? sign. ?1 is worth $1.88 on the currency markets. Somebody somewhere is making >88% on the transaction when I buy from the UK. horlicks to that! Quote Link to comment Share on other sites More sharing options...
JC Posted May 11, 2006 Share Posted May 11, 2006 ...... and what about the punters? I can buy models in the US with the same number after the $ as UK dealers have after the ? sign. ?1 is worth $1.88 on the currency markets. Somebody somewhere is making >88% on the transaction when I buy from the UK. horlicks to that! VAT and shipping makes a big lump of that amout in my experience. Quote Link to comment Share on other sites More sharing options...
MODELFARMER Posted May 11, 2006 Share Posted May 11, 2006 Tony Blair needs slapped twice Quote Link to comment Share on other sites More sharing options...
THEBRITFARMER Posted May 11, 2006 Share Posted May 11, 2006 Aye that's all well and good but don't have a heart attack in the US. They don't have a healthcare system like the UK or Canada (however poor we may think ours is) Without insurance it could set you back $100,000.00. Some states only pay 6% sales tax. Quote Link to comment Share on other sites More sharing options...
MODELFARMER Posted May 11, 2006 Share Posted May 11, 2006 i'm willing to take the risk Quote Link to comment Share on other sites More sharing options...
Andy Posted May 12, 2006 Author Share Posted May 12, 2006 I spoke to Britains about the US / UK price issue. A big factor in their case is import duty. They pay huge sums on items they bring in which pushes the price up compared to the US avoiding this charge. Sometimes also price spent on the item has an affect, i.e the large RC john deere model, to get it to the UK, RC2 had to make some substantial changes from the US version to make it legally safe here, which makes it more expensive to buy. Quote Link to comment Share on other sites More sharing options...
THEBRITFARMER Posted May 12, 2006 Share Posted May 12, 2006 I spoke to Britains about the US / UK price issue. A big factor in their case is import duty. They pay huge sums on items they bring in which pushes the price up compared to the US avoiding this charge. Sometimes also price spent on the item has an affect, i.e the large RC john deere model, to get it to the UK, RC2 had to make some substantial changes from the US version to make it legally safe here, which makes it more expensive to buy. That is interesting, I thought it would be the other way round as they'll sue some over here if look at them wrong Quote Link to comment Share on other sites More sharing options...
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