Buying from abroad and selling for a profit.

[Wolfie_Sniper62]

Has anyone ever tried buying an AEG from abroad at much discounted rates as compared to UK and then sold it on? Would it be viable or is postage too high?

[Panoptes]

Re: Buying from abroad and selling for a profit.

Shipping costs + import duties/tax cancels it all out. I got my TM SCAR H for £17 less than I would have done if I'd bought in the UK (had they actually been in stock anywhere....)

[bravotwozero]

Re: Buying from abroad and selling for a profit.

Pan has nailed it...

The costs involved make it a pointless exercise.

Zeroone has though! But they buy in bulks and can claim the VAT back.

[Panoptes]

Re: Buying from abroad and selling for a profit.

They still don't save all that much - and they must make a profit to survive; which is why UK retailers are often wrongly accused of rip-off prices.

[Hawk]

Re: Buying from abroad and selling for a profit.

Pan speaks the truth!
Next time let me answer first ok

[windywindmill]

Re: Buying from abroad and selling for a profit.

But they buy in bulks and can claim the VAT back.

Out of interested how do they claim the tax back?
Do retailers not have to pay the tax?

[generalbaxter]

Re: Buying from abroad and selling for a profit.

when looking at importing goods, say $200, just think its £200 with the shipping and vat, then go to a british shop it will be £220, and you will get it next day, not 2 weeks later as its sat in customs for 12 days lol

[Johnno]

Re: Buying from abroad and selling for a profit.

Easier to make money doing that with parts or accessories, I have doubled my money in the past with Eotechs and PEQ Boxes ;-)

[bravotwozero]

Re: Buying from abroad and selling for a profit.

Out of interested how do they claim the tax back?
Do retailers not have to pay the tax?

Input Tax.

Businesses can claim VAT back on goods and services they've paid for.

So I'm assuming stock would come under this too.

[odobo]

Re: Buying from abroad and selling for a profit.

I looked into a few years ago before the VCRA - but the quantities you need to buy as in 50 -100 units of each gun type - to get good rates on each individual unit (think economies of scale) it starts getting a bit crazy when you add up the totals - (I had got a budget of about 10K in my head to start it off as a business - and it was pretty tight even back then

The actual importing and taxes are not so much a problem - the manufacturers are all geared up for it - with bills of lading and all the paperwork pretty much done their end - Yes be a company so you can claim the VAT and any other taxes to make the initial outlay half bearable - but you will have to stand that expense for a while - as it takes a while to get tax back and the VAT cycle to kick in (they charge every quarter -= so you claim back in the quarter after - the quarter in which you spent it)

But - to be honest the biggest obstacle in trying to sort it out was actually UKARA as an organisation - as they seem to hold the keys to the kingdom - in that they looked at what I do for a living and basically said we won't approve you.

To cut a long story short - I work in web development specifically ecommerce and was looking to set up as an online retailer - so no massive problems there - and I was even looking to setup an actual database for UKARA numbers to be kept upto date and based online so any seller could check - and they werent interested in that either.

But because I wasn't ... in UKARA's view ... already in the "airsoft market" they wouldn't approve me to become a retailer ... Which essentially meant I wouldnt be able to legally sell anything I imported - it felt like I wasn't allowed to be in the club - by the boys that run the club with their mates - (the advice from UKARA was to start importing two tones and sell them until they were happy I was legit - which slightly fdefeated the object of the business plan I had!)

so ...

In short don't expect it to be easy - or cheap - or a get rich quick - even though when you ask a manufacturer for their trade price list you see weapons listed in the $30-$40-$50-$60 bracket - and these are well known makes in well known styles - and sell for £100-£150-£200-£250 Price brackets if they are in the UK.

My two pence worth - (from experience)

[Panoptes]

Re: Buying from abroad and selling for a profit.

That's the one thing the UKARA lot are terrified of - an ecommerce retailer / businessman starting an Airsoft store - and worse, one with capital. The day that happens, they're all doomed...