Serious Help required

[Mikey]

OK, I've managed to make contact with an exporter (in Pakistan who speaks very good English) and managed to suggest that I can sell his companies hand made leather products. I've got a brochure and we're talking really good looking stuff. Due to wages and materials out there, the stuff is very cheap and would sell for a lot more in this country. He wants me to be the middle man in approaching retailers to buy the stock. He is prepared to pay me a slice of the sales and I would be the only link as he has no products yet in this country so potentially, I could be the distributer to a whole market with only me taking the cut.

I came on here because I'm like a fish out of water with this. I'm sure there is experience on here that could help me. Can anyone tell me what I need to know, what protection I need for myself and how to secure the best deal for me.

To give you an example, here are the initial questions I asked and his e-mail response.

[FONT=times new roman, new york, times, serif]My Email:[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]I am interested in your products, which look very good. I naturally have some questions.[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]1. Will I be importing direct from Pakistan, in what minimum quantities and how much postage will therefore be added to the advertised costs that I would be paying.[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]2. How do you expect me to pay for them i.e. in advance, after shipment, by credit card, paypal etc?[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]3. Would I be the only seller in the UK or do you already have sellers and if so, how many and where geographically?[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]4. What if I am good at this, will you have enough to sustain it if there is heavy demand?[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]5. How long after I make an order will the goods arrive to me?[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]6. Can I pay in UK currency (as that is what my bank is) and if so, how do you intend to convert your dollar prices to UK pounds. Currently, $2 are approx £1.[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]7. Is there anything you would need me to sign up to or anyone I would need to meet?[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif]His response:[/FONT]
[FONT=times new roman, new york, times, serif] [/FONT]
[FONT=times new roman, new york, times, serif] Its nice to hear that you are interested in the business. Now here are the answers to your asked questions and some further details.

1. Yes you will be directly importing from Pakistan and you dont have to pay any postage on the products. These prices include all the shipping and insurance charges.
(Minimum and maximum quantities are indicated below.)
2. I think both of us have the right to secure our investments. If there will be some large orders we better do the payments via L/C . For short term order and consignment we can manage it via T/T or M/T.
3. At present we dont have any seller or representative in the U.K
4. Our monthly production capacity for the wallets is 3000 to 4000 pcs and for the jackets it is 400 to 600 pcs. I think in start we dont need to upgrade it.
5. It all depends on the order. After completion of the goods it will take 5 to 7 days .
6. Yes you can pay in GBP and i shall convert the prices from USD to GBP.
7. No now you dont need to sign up any thing or to meet any one.

Now there are some other information i would like you to know.. As you can see our company is not a very large one. Usually large exporting companies make contracts with large buying houses with huge volumes of order. These buying houses have contacts with the retail market. That what we are trying to do is to find orders from the retailers directly with you as the middle man. As we dont know who you are so we cant make large deals on your behalf. As I wrote above I would prefer an L/C based deal for large orders. Presently I like you to take small orders in some hundreds or less then what ever for the wallets and jackets. This will make things clear for both of us and by the time we can expand our sale and scope.
So this is my keen business offer to you and I hope you will be interested.
And I also want to know what you expect me to pay you for per piece of wallet and jacket.
Take care and thanks for your interest.

Any help would be much appreciated - thanks - Mikey​

[/FONT]

 

[Mr. Mu]

Mikey

I don't know anything about the business of importing leather goods but I can't help hearing alarm bells - partly because you yourself say you're like a fish out of water in this.

Sounds like you need an experienced partner.

But my first question would be: how well do you know the market? How great is the demand? How many other suppliers are there already? From what you've written, I think you're making the mistake of translating the fact that no-one else is selling for HIM to mean that you have a market to yourself.

 

[Mikey]

Essentially, we are talking new leather wallets for £1.50 per item and comparisons to that which are selling already in the UK are going for £15 - £25. I'm not a genius, but I can see a margin potential there whatever the market because of the prices.

I also don't actually know the market yet because, hey, I only just got involved.

My reason for the post was to see if a potential business partner would be coming forward.

 

[lex]

If you dont have experience in an area it wont completely stop you trying it out, sure an experienced partner would be great but you cant have everything.

Do research, find out what you can, if it looks promising and the products are legit, there is nothing stopping you taking a shot.

 

[SpeedyExpressCouriers]

I have a little experience which may help. Below is some advise which may help, its not to put you off but you should be aware off:

1. Before you look at the market here you need something from them in black and white but it may not mean anything because nobody obeys the laws there.

2. They are telling you to place small orders, business doesn't work like that. Especially in Pakistan, if you want 500 they will throw in a couple of hundred more at a slightly cheaper price. More sales for them.

3. 80% of China's (Worlds Counterfeit Headquarters) knock off goods come through Pakistan.

4. In Pakistan, nobody deals in GBP or USD. Its Rupees, there are approx 110rupees in £1.

5. Cheap labour and material. These wallets cost approx 20 rupees to make, approx 10p. Use 4 and 5 to maximise your profits.

6. You can be prosecuted for importing counterfeits if the products are counterfeit. 95% chance of them being dodgie.

7. Retailers here will not buy the wallets because they will be off very cheap quality.

8. Hope you have deep pockets for Tax and duty, customs will have an eye on you if you do place big orders, they are well aware of counterfeits from the east.

9. I ran out of tips, will let you know if anything comes up.

10. Good luck with you venture

 

Hi Mickey we have imported from the east ,it is usual to see a sample selection of the goods before commiting to a larger order.If they refuse this request I would give them a wide berth

 

[W3LCOM]

Hi Mickey, in your project I am not sure to understand what is your job, in this chain. Are agent, or importater?
"He wants me to be the middle man in approaching retailers to buy the stock" for me that is mean you are a agent.
Agent : have a comission, he do not pay goods and resale
importater : pay goods and resale

 

[Mr. Mu]

Mikey, my comment wasn't to put you off, it was by way of recommending you get an experienced partner for your own sake. Your next post confirmed that's what you're looking for (though you didn't actually ask for that in your original post). Best of luck with it.