If you do choose to stock inventory, here are a few tips to reduce your product cost and increase your profit margins:
- Order Full Cases. By ordering a full case of product (12 quarts), you get a price break when compared to ordering a partial case. For example, by ordering a full case of 12 quarts of 20W-50 Motorcycle Oil, you'd save almost 5% per quart vs ordering less than a full case. This is a savings of $0.55 per quart.
- Place one larger order, not several small orders. By placing the largest order possible at a given time, you spread the shipping and handling charges across multiple products thus reducing the price that you have to charge your customer and increasing your profits. For example, if I order one case of 20W-50 Motorcycle Oil, the shipping charge will be approximately $1.35 per quart. If I order 10 cases of oil on the same order, the shipping charge is reduced to only $0.38 per quart. This is an additional savings of $0.97 per quart.
- Try to order $1350 or more per order. AMSOIL offers a discount based on the size of your order. Once you are established and are able to sell at least $1350 worth of product between orders, try to have a minimum order total of $1350 (before tax and shipping) and you'll receive an additional discount of 2%. A savings of $0.21 per quart.
By putting these three steps into practice, you could save around $1.73 per quart of oil! This is a HUGE increase in potential profit.
Tip 1: Keep an eye out for any promotions offered by AMSOIL. There is often a rebate/promotion in or around May - June that coincides with the annual convention. You may receive up to 5% off of any orders placed during this time.
Tip 2: Take a look at what rewards your credit card offers. You should be able to get a cash back or travel rewards card that offers up to 2% cash back on your purchases. Money Sense Magazine has several good articles on choosing the best card for your needs: http://www.moneysense.ca/spend/credit-cards/canadas-best-credit-cards-of-2015/
Hope this helps. Happy Selling, let me know if I can help in any way.
PS, if you are not an AMSOIL Dealer and would like to learn more about the dealer opportunity, click here to request a free information package or call me directly