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Posted: 1/2/2007 7:21:31 AM EDT
I'm going through the motions about starting a new retail business. I'm investigating my costs to determine if I can offer the products at a competitive price while still making a profit.

My question...
How do I found out the product wholesale/dealer cost from the manufacturer?

My difficulty in answering this question has to do with the fact that I haven't established the business yet.

Another question...
I'm currently a sole proprietor. I have an EIN and my DBA is my real name.
If I establish a new DBA, can I use my existing EIN for federal reporting and state sales tax purposes?
Link Posted: 1/2/2007 2:21:23 PM EDT
Jeebers! Bumped to oblivion.

Any advice?
Link Posted: 1/2/2007 2:38:40 PM EDT
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.
Link Posted: 1/2/2007 2:42:10 PM EDT

Originally Posted By shootemup:
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.


That's a huge part of the problem I'm running into, although some don't insist on a store front.

Makes is damn difficult to put a busines model together that ensures profitability.
Link Posted: 1/2/2007 4:49:57 PM EDT

Originally Posted By bigsapper:

Originally Posted By shootemup:
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.


That's a huge part of the problem I'm running into, although some don't insist on a store front.

Makes is damn difficult to put a busines model together that ensures profitability.


What I would do is find out from other people within the business you want to start what the average profit margin is.  That will atleast give you a general idea of what kind of profits to expect from a given sales volume.
Link Posted: 1/2/2007 5:00:16 PM EDT

Originally Posted By shootemup:

Originally Posted By bigsapper:

Originally Posted By shootemup:
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.


That's a huge part of the problem I'm running into, although some don't insist on a store front.

Makes is damn difficult to put a busines model together that ensures profitability.


What I would do is find out from other people within the business you want to start what the average profit margin is.  That will atleast give you a general idea of what kind of profits to expect from a given sales volume.


Ah. Ask my potential competitors how to run my business better than they run theirs.
Link Posted: 1/2/2007 5:08:05 PM EDT

Originally Posted By bigsapper:

Originally Posted By shootemup:

Originally Posted By bigsapper:

Originally Posted By shootemup:
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.


That's a huge part of the problem I'm running into, although some don't insist on a store front.

Makes is damn difficult to put a busines model together that ensures profitability.


What I would do is find out from other people within the business you want to start what the average profit margin is.  That will atleast give you a general idea of what kind of profits to expect from a given sales volume.


Ah. Ask my potential competitors how to run my business better than they run theirs.


I mean eitehr ask people on this board, or ask employees of similar businesses.
Link Posted: 1/2/2007 8:51:18 PM EDT
yeah, do some more homework to project your margins, use RMA Annual Statement Studies to find industry averages.  This is public information.

Depending on your state, LLC usually provides all the advantages of an S-Corp plus more.
Again, do more homework.
Link Posted: 1/3/2007 4:36:47 AM EDT

Originally Posted By James16688:
yeah, do some more homework to project your margins, use RMA Annual Statement Studies to find industry averages.  This is public information.


Thanks. I think I found what I'm looking for.
Link Posted: 1/3/2007 4:06:36 PM EDT

Originally Posted By bigsapper:

I'm currently a sole proprietor. I have an EIN and my DBA is my real name.
If I establish a new DBA, can I use my existing EIN for federal reporting and state sales tax purposes?


Yes.  You should, however, consider forming a separate entity such as an LLC, S-Corporation, or C-Corporation.  There are many factors which determine which is best for you - see an attorney.
Link Posted: 1/3/2007 4:51:44 PM EDT
The US Government "Small Business Administration" is a good place to start for free information. One must realize that the SBA experts are all private company wash outs but they do have lots of statistics in planning a new business.
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