How to start your kitchen equipments business
Updated: Jun 30, 2020
In the past few years, with the development of the Internet and Asia industry development, more and more people realize the potential business opportunity of importing and reselling. They can get a much cheaper quotation than local goods with similar quality. So you can notice that many big wholesalers do more importing business than selling the local goods. And another sign is the international E-commence grow so fast in the last years.
Without profits, no one will do this complicated business. And many people google this question: How to start your kitchen equipment business? Because we all want to get rich and have a better life in the future.
For me, as a professional exporter, we are a professional and reliable kitchen equipment supplier. I will answer this question with my experience.
Remark: this blog is especially for the beginner of importing.
1. The basic knowledge of importing.
The first thing you should know about importing is the regulations of your country. There are different rules in different countries about importing affairs. For example, the tax, the importing license, the certification, the custom clearance procedure, etc. There are many laws to state the legitimacy of importing. So we need to be careful. Or we'll get fined and lose money or worse.
And at the first step of a business, we need to know some importing terms.
EXW: Buyers get the goods from the factory. Buyer cover all cost after leaving the factory.
FOB: Buyers get the goods from their local port and cover the freight. Sellers do the procedures until their local port.
CIF: Buyers get the goods from their local port. Sellers do the procedures until the buyer's local port. Insurance included.
CAF/CNF: Buyers get the goods from their local port. Sellers do the procedures until the buyer's local port. Insurance not included.
DDU: Buyers get the goods at their office. Tax not included.
DDP: Buyers get the goods at their office. Tax included.
There are more terms than above. They are the most used terms that we encounter.
DDP is the most convenient and very cheap. But it's only suitable for small goods. If it's big products, you may need to use the other terms except for DDU and DDP. Besides, you will need to get the goods from the custom and do the custom clearance procedures.
But don't worry. Just ask the supplier. They may have solutions to transport big goods directly to your door!
The procedure for importing big goods:
Order->payment->production->custom declearance->shipping/air->custom clearance->transport to warehouse/office->arrival
The procedure for importing small goods:
You can obviously see those small goods are much easier to import. That's the reason so may e-commence retail company rising these years. E-commence company will just do marketing and supplier do the production and shipping affairs.
When passing the custom, they may ask for certification, tax, etc. For small goods, there are chances you will be selected and may be asked to pay the tax. If you are lucky, you will not be selected. For big goods, the custom will be very strict and ask for many files including cert and tax.
2. Where to find a reliable product and supplier
First, we need to know some methods to find a supplier for you. There are many different ways. There are many precautions before order your goods. I will show you one by one.
Which country to purchase your goods?
China: There are so many factories in China that can produce many kinds of products. And the perfect industrial chain makes China the biggest supplier all over the world. They mostly just produce goods but don't own a brand or a famous brand!
Not China: There are still choices from other countries, but they mostly don't have industrial chains. So you need to pick them one by one. When you need a brand product or a very high-level product, the other countries are better choices.
How to choose the product?
Price: Price is an important part of all businesses. It determines the profit you will get. But too low price means the low quality and high business risk you maybe will face.
Quality: The quality is not a certain concept. One product may be of high quality for A market but low quality for the B market. So we need do market research before choosing the suitable quality. And another thing is market positioning. The quality you need depends on the target customer you group you want to have.
Service: when choosing the right product, the service of the supplier is very important. The response time, the negotiation methods, the attitude, etc. A good service will save you time and money. The bad service...
Time: I mean the delivery time. After you place the order, how many days they will send you the goods? this is very important too. The too long time will make your business unstable. A shortage of goods is not a good thing.
Which supplier to choose from?
Factory: They are the direct supplier of the products. And one factory may have many many customers. They always cooperate with the wholesalers and distributors. So there are many circumstances that a supplier ignores your product request if you are just a beginner. Because they just don't care! They have to cost so much time to do a small order and don't have time to serve their big customer like Walmart. This is not the right way for them, they need a big quantity to make the company run every day and earn a lot to support the cost of the factory. But some small factories are willing to accept small orders like beginners.
Wholesaler: They are the one who collects the goods from the factories and resells to customers. The factory only produces certain products. But the wholesaler can supply a bunch of products for you to choose from. And their price may be lower than the factory if low quantity. So they are another choice.
Both: Sometimes you will meet a factory that can procure other goods from other factories. They are both the factory and wholesaler. So if you have such supplier to provide the major product you want and can collect some other necessary products for you, it will save lots of time and cost.
How to ensure safety and reliability?
This is very important!
This is very important!
This is very important!
When you find a supplier, I suggest you ask for some official proof if they have.
Official website: A qualified supplier must have an official website that you can find on google. An official website is a very basic element for a supplier. So if they don't have one, that means they are too small. And a website that was built for several years with many traffic is very important to a company. And they will use their official email to communicate with you like firstname.lastname@example.org.
B2B platform site: Some suppliers will have a B2B platform to help them with their business. The supplier will pay to have an official account. They care about this account because the cost is high and the cost of the ads is also high. So they are about this account.
Business license: This is the approval of business from the local government. So if you know their language and you can read the business license, you can tell if this company really exists. And the company registered will be shown on their local yellow page and government website. In China, the supplier information will be collected and shown on many websites. You can easily find if they receive any punishment from the government or courts.
Online comments: If the company's business is good, they will have many comments from customers, You can check them for your reference. But sometimes the company customize logo don't have any comments because they sell products with others' logos
Friends comments: If you have friend in the same country as your supplier, you are lucky. You can ask for a favor and your friends who are familiar with the country can verify the supplier easily.
Remark: The most important is that you need to know what business is suitable for you. And then you can choose from the above choice and get the best choices for you.
How to make sure the product is profitable
I have introduced the price briefly, here I will explain them to you by detail.
The initial purpose for us to sell goods is always profit. This is what supports us to provide better service and products to our customers. If the profit is low or loses money, then this business can't last long. So it's always a question when it comes to profit.
So if we want to start a business, You need first know about the basic knowledge of importing first.
After that, we need to research your local market to check the average price and average quality and marketing methods.
Selling price: After you have evaluated the total importing cost, you will need to check the selling price in your country to check if there are profits. The profit must cover your labor and any other costs. And there still must be a profit after you have covered all other costs like labor, food, electricity, etc.
Average quality: Then for the different selling price matches the different quality. Just compare your sample with them, and set a suitable price. Ensure the selling price is similar to a similar product.
Marketing methods: The different methods of selling determine the different selling prices. The online shop, local shop, big market, etc, set different prices for the same product.
So you need to check the above items to make sure your product is profitable. Losing money is a very unpleasant experience. Your profit must cover your labor, your time, your tools, etc. Anything you spent on this project must be covered and there is still enough balance.
How to sell products in your country
This is the question before your business. If you don't have methods to sell them, I suggest you rethink this business and find out the solution to selling. Because this is the most important part of your business.
Internet: E-commerce website, amazon, eBay, local retail website, Facebook, etc. You will need to learn how to use these platforms.
Local shop: You can rent a place to register a company to sell the goods. You will need to ensure this site has enough traffic or you can bring traffic.
Both: This is the method I suggest you try. But it will take more money and time. So if you do this, please insist until success.
Remark: if you already have your ways to sell them, you can ignore my suggestions.
So above are all my suggestions for you to start a kitchen equipment business. And they are just very rough. If you have any detailed questions, you can contact us.
And we are a professional supplier of kitchen equipment. We specialize in beverage appliances like coffee grinders, blenders, coffee makers, etc. If you are interested in any kitchen equipment, you can contact us. We will provide our best quotation for you.