Starting My Own HeadShop - Glass

[LargeLeaf]

Hey guys,

I am thinking about starting my headshop. I am located in Canada, near the US/Canada border.

The average bong imported costs around 32 US dollars (including import taxes). Shipping is around $17 (includes tracking), bubble wrap, and box.

So that is around $42, and then the payment processor takes around 6.4% (high risk merchant)
So if the bong is around $60, the fees will break down to

Payment Processor Fees - $4.44
Cost of Product - $32
Shipping - $17
Warehousing - $5
--------------------------------
Profit left over - $1.56

The pros are the glass bongs are all high quality, shipped from canada/us/quicker, any issues you have you can easily contact me and resolve the issue, and I can import glass that people like and get suggestions and/or give you suggestions. I know a lot of suppliers around the world.

Cons - Slighty more expensive than dhgate, not the same selection.

If you are interested, you can PM your email and I can send a letter when the store is ready.

 

[Chicken #420]

Hello!

A 2.6% profit margin sounds like an equation for buying a hard job for yourself, that you could probably keep doing for a few months... if you don't need any income.

I would personally reconsider your business strategy... unless you want to do this as a "hobby with obligations".

 

[alittledabwilldoya']

... unless you want to do this as a "hobby with obligations".

That sounds much less pleasant than "friends with benefits".

 

[Tranquility]

I agree with @Chicken #420 that that does not seem to be enough "profit" for the time. Notwithstanding the hassles of returns, internet and other utility costs, rent, business license, advertising and all the other expenses not considered (Which may not be relevant, depending on your business plan.); how much time does it take to get an order, pack it and ship it?

Let's make a WAG and say 10 minutes. (I bet it is more until you get some volume and automation benefits.) Even with your numbers, you're only talking about less than $10 an hour. And, THAT does not consider the worry, hassle and time if anything goes wrong.

Think about the problem you're trying to solve and what you bring to the table. I don't want to discourage you as I love entrepreneurship. It's just that "more cost with less selection, but you get it a little quicker" does not seem a marketing niche crying out for someone to fill. Find the niche you can do better then many and then charge a bit more to cover that "better" and make a reasonable profit for your time.