How the importation business works…
Before we get into the thick of this article, it’s important that we understand the basics of buying and selling.
How is money made in the ‘buy-and-sell’ business?
Simple; you buy something (wristwatches, for example) at a low price and sell them at a higher price to make a tidy profit. To increase the size of profit you can make, there are basically two options you have. You can either find a way/place to buy wristwatches at a lower price or look for customers who will buy them at a higher price. This is how everybody in the retail (buy-and-sell) business makes money (profit). Buy low, sell high. It’s simple math!
To make sure you understand the opportunity we’re about to share with you, we shall use a quick illustration: Let’s assume you are the owner of a small business that sells foreign-made wristwatches. You have a small shop in which you display all your lovely wristwatches for customers to admire and possibly buy. Because you can only afford to stock about one hundred wrist watches at a time, you have no option but to buy from big importers who, because of their large capital, can buy thousands of watches from foreign manufacturers at very low wholesale prices.