Is it wise to become a IT reseller?

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Is it wise to become a IT reseller?

Postby cas » Fri Feb 12, 2010 4:52 am

Say if once a while one would supply product to home and offices. Getting product supply directly from distributor seem like a better choice rather than getting from retailer. Pros is that you would be given credit terms like 30-60 day later for payment as least one would not be tight up or in cashflow problem and thus could tender for bigger job and supply more product and interms of price, you're able to offer competitive price rather than buying the stock upfront in a shop and have to pay on COD and worse scenario if the customer required u to give them credit terms, then one would have cash flow problem cos your cash is held up :(
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Re: Is it wise to become a IT reseller?

Postby Mr. Chris » Fri Feb 12, 2010 7:37 am

With any new relationship with a distributor, you will have to pay COD at first, unless you have really good credit. Then after a while, they will start billing you on 30 day cycles. Be late once and you may go back to COD.

The problem with trying to do something like this is bigger companies already have their own purchasing department, so you will only get small stuff. And your prices will have to be lower than other retailers for anyone to buy from you. Here, you need a business license and get a "Seller's Permit" so the distributor won't charge sales tax. Then you charge the customer the tax, and every 3 months, you have to give that money to the State Franchise Tax Board. It can be more hassle than it's worth. Not to mention shipping charges!
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Re: Is it wise to become a IT reseller?

Postby Josh18657 » Fri Feb 12, 2010 1:42 pm

I once had accounts with all the big it distributors and still found myself mostly buying from newegg. Yes their prices are lower that the distributors unless you plan on buying a large amount of each item. You may be best off getting a lowish interest credit card and using that for buying for business.

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Re: Is it wise to become a IT reseller?

Postby cas » Fri Feb 26, 2010 6:44 am

Mr. Chris wrote:With any new relationship with a distributor, you will have to pay COD at first, unless you have really good credit. Then after a while, they will start billing you on 30 day cycles. Be late once and you may go back to COD.

The problem with trying to do something like this is bigger companies already have their own purchasing department, so you will only get small stuff. And your prices will have to be lower than other retailers for anyone to buy from you. Here, you need a business license and get a "Seller's Permit" so the distributor won't charge sales tax. Then you charge the customer the tax, and every 3 months, you have to give that money to the State Franchise Tax Board. It can be more hassle than it's worth. Not to mention shipping charges!


I contacted a couple of distributor here recently, some are well known distro. Most required me to pay COD and subsquently then might get credit terms. So far there's only one distro here (who used to be distro of abit mobo here) who is willing to give me 14 day terms and i try bargaining for 40 or 60 days but were only offer to 30days and though he agreed but provided i sign as a gurantor as in if i'm late in my payment they would take action against me, moreover they want a PD cheque (post dated cheque)

Hmm i was wondering should i just get directly from the manufacturer or directly import overseas without going through these local distributor? Or should i approach Fiona or John gatt since they have expertise on such? :(
Last edited by cas on Sun Sep 19, 2010 1:46 am, edited 1 time in total.
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Re: Is it wise to become a IT reseller?

Postby cas » Wed Apr 28, 2010 10:46 am

Josh18657 wrote:I once had accounts with all the big it distributors and still found myself mostly buying from newegg. Yes their prices are lower that the distributors unless you plan on buying a large amount of each item. You may be best off getting a lowish interest credit card and using that for buying for business.

Josh


Is it?? Getting directly from new egg is cheaper than getting from distro? Waht about delivery charges or tax? Wouldn't that make up the same as getting from distro? But then if i'm not wrong, new egg only deliver to USA and not asia?
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Re: Is it wise to become a IT reseller?

Postby cas » Sun Sep 19, 2010 1:49 am

I once had accounts with all the big it distributors and still found myself mostly buying from newegg. Yes their prices are lower that the distributors unless you plan on buying a large amount of each item. You may be best off getting a lowish interest credit card and using that for buying for business.

Josh


Too bad new egg only shipped to certain country, it would be good if they shipped to our area. Anyone knew of any similar site like new egg which offer good deal that shipped to asia. Or anyone knew of any place whereby i could get wholesale price as i'm always in a disadvantage when comes to pricing while getting supplies from local distro, not to mention having to pay COD as wel
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