Oliver_Henniges - 6:57 pm on May 7, 2007 (gmt 0)

Just wanted to add a few more things that came to my mind. One in response to ecommerceprofit who said in msg #:3321455:

"just concentrate on a solid net profit...then go and sell your business."

It is far from easy to sell out any sort of (niche) B&M business, particularly if technical or other know-how makes a big part of the story and if - as in may cases - most of this know-how is available only in the owner's brain. Even if you make a million $$ turnover per year as OP; that isn't really very much if you pay too high a percentage to your suppliers. This leads to the second point:

In another thread in this ecommerce-forum someone suggested that margins should amount to 40% if ever possible, unless you rely on five-figure orders solely.

In skatingtoolman's case this would mean he has 400k per year to pay himself, his empoyess, storage, complaints, returns (oh yes: have you tried to return a drop-shipping? gosh..) and all the rest. How many full-time technicians can you pay as employees from that margin? two? three? And if he is a competitive area, where 40% are really hard to acchieve, you'll get an idea of what is going on behind the phones.

skatingtoolman:

1) What's your average margin?
2) What's your average order in $$?