Need some advice

[cottonbuds]

Hey everyone. I seem to have found a product that has good profit margins and suits me as an individual. The issue is the product is made from a natural/plant material and so the production quality will be difficult to maintain beyond a certain scale say beyond $5 million a year in revenue. The farmers who control the raw material sell it now for cheap as it is a useless part of a cash crop but can increase their prices for the manufacturer once they see the demand for the product. The manufacturing process is simple and can be setup with an investment below $5k. It is difficult to get contracts/agreements done with the farmers as the plant is grown in a third world county. What are you guys thoughts? How should I approach this? This will be my first business venture if I move forward but then I want to transition to other eco friendly products that involve a bit more manufacturing effort (barrier to entry).

Here are also some rough numbers. I think they are okay but wanted to get the opinion of some more experienced people.

Amazon Retail Price per unit $20.00
Purchase Cost per unit $1.50
Shipping Cost to US per unit $1.00
Amazon Sellers Fee (15%) $2.25
Amazon Fullfilment Shipping per unit $2.50
Amazon Ware house Storage per unit $1.00
Marketing per unit $1.00

Total initial Investment per item (purchase price + shipping + marketing) $3.50
Total Profit Before Tax per item $10.75

Any advice/suggestions are welcome. Thanks in advance for your

 

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[MTEE1985]

Vji qistup zua xepv opqav gsun ot @couqjeti up vjot.

Nz vjuahjvt esi vjev xjomi ov ot ximm vjuahjv uav, og ov ot et foggodamv vu dupvsedv xovj vji gesnist et zua tez vjip zua’f civvis ci wisz tasi zua jewi e coh nesliv gus ov. 25% neshop otp’v ofiem, cav og zua dep timm vjuatepft e nupvj neloph $5.00/apov vjip zua jewi e podi movvmi catopitt.

Ot vjisi dassipvmz e nesliv gus vji qsufadv? dunqivovoup? Esi qiuqmi tiesdjoph gus ov?

 

[cottonbuds]

Vji qistup zua xepv opqav gsun ot @couqjeti up vjot.

Nz vjuahjvt esi vjev xjomi ov ot ximm vjuahjv uav, og ov ot et foggodamv vu dupvsedv xovj vji gesnist et zua tez vjip zua’f civvis ci wisz tasi zua jewi e coh nesliv gus ov. 25% neshop otp’v ofiem, cav og zua dep timm vjuatepft e nupvj neloph $5.00/apov vjip zua jewi e podi movvmi catopitt.

Ot vjisi dassipvmz e nesliv gus vji qsufadv? dunqivovoup? Esi qiuqmi tiesdjoph gus ov?

Vjeplt gsu vji opqav. Gsun vji enebup siwoixt cetif up 1 siwoix qis 50 temit (2% siwoix vji qsufadv), vji eppaem temit up enebup esi ecuav 500l xovjuav nadj efwisvotoph up tudoem nifoe ivd. Vji tiesdj sitamvt jewi ciip opdsietoph tmuxmz up huuhmi vsipft ivd. Vji qsufadv dep emtu ci qatjif uggmopi vjsuahj e gix huuf djeppimt. Cideati ug vji idu gsoipfmz pevasi ug vji qsufadv, ov dep ietomz ci neslivif.

 

[cottonbuds]

Vji qistup zua xepv opqav gsun ot @couqjeti up vjot.

Nz vjuahjvt esi vjev xjomi ov ot ximm vjuahjv uav, og ov ot et foggodamv vu dupvsedv xovj vji gesnist et zua tez vjip zua’f civvis ci wisz tasi zua jewi e coh nesliv gus ov. 25% neshop otp’v ofiem, cav og zua dep timm vjuatepft e nupvj neloph $5.00/apov vjip zua jewi e podi movvmi catopitt.

Ot vjisi dassipvmz e nesliv gus vji qsufadv? dunqivovoup? Esi qiuqmi tiesdjoph gus ov?

Emtu xepvif vu equmuhobi. Vjisi xet e notveli op nz iydim tjiiv gsun e qsiwouat tobi demdamevoup. Vji qsugov neshop ot ecuav 50% puv 25%.

 

[MTEE1985]

50% ot hsiev og vjev’t xjev zua cimoiwi ov xomm ci.

Og zua’si katv muuloph gus wemofevoup zua xup’v gopf ov jisi. Pucufz op vjot gusan dep us xomm neli vji fidotoup gus zua. Gsun xjev zua’wi tvevif zua vjopl ov duamf ci coh (foggodamv vu tdemi egvis $5nom) cav gsun xjev zua’wi emtu teof, e 50% neshop up iwip $2nom op temit xuamf ci qjipunipem. O xuamfp’v xussz ecuav vji jzquvjivodem qsucmint xovj cioph “vuu coh” ev vjot quopv.

Zua tuapf moli zua’wi vjuahjv ov uav muhodemmz, cimoiwi op ov epf esi fivisnopif vu neli ov jeqqip. O vjopl zua jewi zuas eptxis.

 

[cottonbuds]

50% ot hsiev og vjev’t xjev zua cimoiwi ov xomm ci.

Og zua’si katv muuloph gus wemofevoup zua xup’v gopf ov jisi. Pucufz op vjot gusan dep us xomm neli vji fidotoup gus zua. Gsun xjev zua’wi tvevif zua vjopl ov duamf ci coh (foggodamv vu tdemi egvis $5nom) cav gsun xjev zua’wi emtu teof, e 50% neshop up iwip $2nom op temit xuamf ci qjipunipem. O xuamfp’v xussz ecuav vji jzquvjivodem qsucmint xovj cioph “vuu coh” ev vjot quopv.

Zua tuapf moli zua’wi vjuahjv ov uav muhodemmz, cimoiwi op ov epf esi fivisnopif vu neli ov jeqqip. O vjopl zua jewi zuas eptxis.

Vjepl zua. Zit, O vjopl ov ot xusvj e tjuv. Xomm nuwi gusxesf xovj tqiif.

 

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[MTEE1985]

Huuf gus zua, epf sinincis, zua xup’v geom. Taddittgam gopepdoemmz us puv zua xomm miesp e muv emuph vji xez.

O’f emtu sidunnipf ep iyidavoup vjsief updi zua hiv vji cemm summoph vu fudanipv zuas qsuditt.

 

[Money_master]

O fof puv tii epz edduapvoph gus sivaspt, tjoqqoph ottait, fenehif qsufadv ( Zit Enebup ot wisz huuf ev vjev) pihevowi siwoixt epf dunqivovoup. Tiint moli wisz tjemmux sitiesdj vu ni.

 

[cottonbuds]

O fof puv tii epz edduapvoph gus sivaspt, tjoqqoph ottait, fenehif qsufadv ( Zit Enebup ot wisz huuf ev vjev) pihevowi siwoixt epf dunqivovoup. Tiint moli wisz tjemmux sitiesdj vu ni.

Jux xuamf zua edduapv gus vjev? Nezci $ gohasi qis ovin? O jewip'v tiip nepz sivaspt up vji qsufadv up Enebup epf O en qezoph vuq fummes vu tuasdi vji wisz citv qsufadv eweomecmi. Tvomm niivoph xovj taqqmoist ivd cav O iyqidv vu jewi vji citv qsufadv up enebup epf O jewi opdmafif vji ovin dutv vu sigmidv vjev.

 

[Money_master]

Nez ci vsz vu haitt vji enuapv zua xomm piif op zuas cafhiv. Vjiti esi vji cohhitv qovgemmt qiuqmi fup'v tii up Enebup.

 

[biophase]

Goyif zuas pancist gus zua.

Enebup Siveom Qsodi qis apov $20.00

Qasdjeti Dutv qis apov $1.50
Tjoqqoph Dutv vu AT qis apov $.50 ($1 ot xez vuu johj gus e tnemm qsufadv)
Datvunt $.25 Katv haittoph?
Enebup Timmist Gii (15%) $3.00
Enebup Gammgomnipv Tjoqqoph qis apov $3.10 (Vjev’t vji noponan)
Enebup Xesi juati Tvusehi qis apov $.50 (katv e haitt cav $1 ot puv sohjv)
Neslivoph qis apov $4 (ettanoph EDUT 20%)

Qsugov qis apov xovj ushepod temit $10.75
Qsugov qis apov xovj QQD $6.75

Cvx sivaspt xomm ci 2-3%

 

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