500% Profit

[D3SIGNER]

Hi All,

I think I have spotted a niche in the market which is very specialised and not very common. I simply buy a product for £10 and sell it, and minus all expenses makes a profit margin of £50. In a month maybe I can sell 4/5 to be realistic, without advertising.

Is this a waste of time?, or could this be a small on the side viable business venture?

Also is 500% profit a good percentage to make on a product?

I would love to hear some feedback / advise on this.

Many Thanks

 

[VSpy1]

I would be esctatic with 500% profit on a product! But if it were that simple, wouldn't everyone be doing it? What do you propose to buy/sell at margins like that without people having a rough idea of worth...and where would you get it?

 

[kulture]

If the niche and margin is this good, then enjoy it. Sooner or latter someone else will arrive and undercut you. I have two such things on the go at the moment, but I certainly do not expect them to continue.

 

[Moneyman]

That is a very nice margin...but it is the marketing costs that often defines the markup. Keep thse unde control and you will be sucessfull but start slow as it is hard to find the buyers to start with.

 

[Lucan Unlordly]

500% profit is good, not as good as 1000% but double 250%.

Where do I send the invoice for business consultancy services?:|

 

[90DC]

D3signer,

Whilst above average margins are achievable, such products carry a risk of a certain amount of competition and are often unsustainable in the long term.

I have found that these kind of operations are the ones where you tend to make money quick and not invest too much time, money or effort into or else, you'll risk losing out. (We were recently selling a product on one of our websites for £5 which we were buying in at 40p a unit and sold roughly 20 a week. Not massive, but it's not a massive business. It lasted all of three months. I never pin my hopes on one particular product and never with the products with significantly high margins as there will always be somebody ready to jump in and offer less, and the more people that cotton on, the lower the price becomes.

My advice. Sell it. Sell it quickly. Don't invest much time, effort or money and have the next 'big margin' product ready.

On a side note, a recent venture I started has great public interest and will double my money in a year. I am pretty sure, though, that within that year, some other idiot will jump on the bandwagon, but I've protected my venture by getting it in the right places and knowing the right people to ensure it's already three steps ahead of potential competition. Maybe this is something which you should seek to do, if you catch my drift.

 

[MikeJ]

Once again - this is 80% (ish) profit, not 500%.

 

[shani1981]

profit=(income-cost)/income=(50-10)50*100=80%

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