The title says it all, does anyone know how being a dealer for Athearn, Broadway Limited, ect. Work? Could you sell through eBay? Or do you need a brick and mortar? Can you buy wholesale?
I am asking because I was considering it as a possible business opportunity...
Steve
If everything seems under control, you're not going fast enough!
Most of the big name manufacturers want you to have a brick & mortar. But that has been changing. Also unless you have a established business you probably will not be able to get thru the credit process. It took me almost 10 years to get a BLI dealership.
Is there a way to buy trains wholesale?
A couple of years ago I looked into how to buy wholesale from Walthers, you were required to show proof that you had a B&M shop. Perhaps you know someone with a retail store who would be willing to let you "partner" with them.
This car stops at ALL railroad crossings!
So if I know a Brick and Mortar retail person and they let me use their entity I can wholesale it and sell on ebay?
NWP SWPSo if I know a Brick and Mortar retail person and they let me use their entity I can wholesale it and sell on ebay?
So if I understand correctly, your latest scheme involves using someone else's credentials, credit, and good name to purchase items from another company (I think that might be called fraud), and then resell those items through ebay or other venues, undercutting the guy who owns the shop.
And why, exactly, would the "retail person" ever agree to that?
Unless the person you're buying it from let's you use his name, probably not. I say that as when you're selling as a 'dealer' and there's an issue with an item, the customer will be asked by the factory where they bought it, want proof of receipt and if you're not a registered dealer with them or you can show that you own the business or bought it from a distributor, the consumer may not be able to have it repaired or replaced under warranty.
I deal with this daily as my products are sold thru distributors (not model trains) and trying to trace it back to them when a consumer calls my factory can be an issue.
Neal
That is not what I said!
I am saying I know a person in retail who is owns a retail facility, and is a family friend if they partnered with me I could buy wholesale and resell the stuff on ebay thats all I said, no fraud!
As Neal just said I'll need my own retail store so never mind....
Now this info is many years old but I looked into this, Bachmann would sell to anyone at discount, min. $10,000 order. You got lots of money sitting around? Also do you know all the tax laws, don't forget about your required licence, and quarterly reports to the state for sales taxes. etc etc etc.
maxmanSo if I understand correctly, your latest scheme involves using someone else's credentials, credit, and good name to purchase items from another company (I think that might be called fraud), and then resell those items through ebay or other venues, undercutting the guy who owns the shop. And why, exactly, would the "retail person" ever agree to that?
There is a way..The LHS owner can partner with you and use his shop's name on the receipt he gets a niece slice of the pie.
There is one catch..The other partner will be restricted to train shows while the HS owner can legally open a e-Bay store.
In the past when everything was done through wholesalers all you needed was a small business license and tax number.
MBK says:
https://www.modeltrainstuff.com/become-a-dealer
Larry
Conductor.
Summerset Ry.
"Stay Alert, Don't get hurt Safety First!"
The title of the thread: How does being a dealer work? Do you buy wholesale?
.
The actual question: How can I get product at a low enough price to make selling on eBay a profitable business venture?
OK... You can forget about becoming a dealer.. I will not drag down the conversation with why... just accept it.
So you want to get product cheap to resell... there are several ways to do this.
The easiest is to find a retail store with slow moving stock and purchase this at a very low prioce for liquidation. I got a lot of my hobby product like this. Hung out in a hobby shop, they said midwest scaler lumber was moving slowly, I offered to buy their entire stock that moment for 40 cents on the dollar of retail in cash, and they agreed. They cleared shelf space and cut losses. I got a good supply of lumber for future projects. Do you have cash lying around? You need cash to do this.
Another way is to make full turnaround on a big purchase for big discount. Walk into a hobby shop and say I want to order $3,000.00 worth of product, I will pay you in cash in two weeks, but I want 30% off of retail. With the ability to make $400.00 for 2 hours of work, most shop owners will jump on that. They might say no. You are under no obligation to tell him what you are doing with the product. I went to four Games-Workshop dealers trying to cut this deal on two new armies. Three said no, one made a big sale for almost no effort. Again, you better have cash.
There are other ways. Any way you try this, you are looking at a tremendous amount of work.
You are better off mowing lawns to get the jingle-jangle in the pockets.
-Kevin
Living the dream.
Trying to keep this all straight,
Your going to start a retail business,without any knowledge of business or the product to be sold. This would be financed with capital left over from a layout build, that was paid for with future lawn mowing,done with a mower purchased with wages from a power washing job you didn't do yet.
OH forgot the BBQ gig. should work.
He's a budding entrepreneur. They don't teach capitalism in school these days.
Henry
COB Potomac & Northern
Shenandoah Valley
BigDaddy He's a budding entrepreneur. They don't teach capitalism in school these days.
I give the boy credit for wanting to make a wage doing something he loves.
NWP, this isn't likely going to be a fruitful avenue for you my friend. It's just not practical.
When the time comes for you to start mowing lawns, let me know. I'll get you set up with some of the landscape referral services.
This space reserved for SpaceMouse's future presidential candidacy advertisements
I am trying to find a low initial investment business that will help me build capital to finance a bigger business...
I was asking a question not trying to start a riot...
Thank you Granite Railroader and Big Daddy...
How do you have a million dollars and a model railroad business?Start with two million dollars.Also, there are at least three companies I can think of off the top of my head that buy in volume and sell less than retail. You'd have plenty of competition from experienced professionals.And speaking as somebody with an actual business degree, buying a $100 product for $60 and selling it for $65 is a mug's game. To make actual money you'll find yourself pricing in the same area as established businesses.
Disclaimer: This post may contain humor, sarcasm, and/or flatulence.
Michael Mornard
Bringing the North Woods to South Dakota!
On the other hand, MTH started out in a garage as a Lionel repair shop. Apple started out in a garage. Sometimes we need to think creatively and differently than what was taught when I got my BA in Business.
HUGE ideas and plans but little or no means to put them into motion. NWP, you have guts. But of course that is only a piece of what is needed. BTW, have you heard how to make a small fortune selling model trains? You start out with large fortune. One advantage us older folks have in many cases is having watch a hobby shops over time. Selling models trains is a tough way to make a living.
Rio Grande. The Action Road - Focus 1977-1983
I was just wondering, obviously it's not a suitable business...
My dad for a while ran a very successful ebay business that produced a good bit of money for the low investment cost, he only stopped because we moved... I think I'll do something like that...
I have a friend who goes to local train shows. He looks for deals, buys them out of most or all of an item and then sells them on EBay. No license needed, and while he's not setting the world on fire, he is making money and finding some things for his layout.
The key here is to know as much about the product as possible. Concentrate on one are, like vehicles, or certain freight cars. Know what the retail was or if it has the price tag on it and go from there..
Start small and build it up!
To have a successful business, there must be 3 specialties paving the way.
The first is a technical expert, one that knows the ins and outs of the product.
The second is a people person, one that can effectively deal with suppliers, employees, customers, etc.
The third is the money person, one that knows how to handle the accounting and logic and common sense of finances.
In very, very few cases does one person effectively cover all three of these areas. Usually, in "one man shops", one of these areas is neglected, and will greatly shorten the lifespan of the endeavor.
Typically, it is the money man that is lacking. Time and time again I have seen folks with great ideas, great product, but no sense of financial planning or logic. The project is doomed for failure, often not lasting a couple of months.
ENJOY !
Mobilman44
Living in southeast Texas, formerly modeling the "postwar" Santa Fe and Illinois Central
mobilman44 To have a successful business, there must be 3 specialties paving the way. The first is a technical expert, one that knows the ins and outs of the product. The second is a people person, one that can effectively deal with suppliers, employees, customers, etc. The third is the money person, one that knows how to handle the accounting and logic and common sense of finances.
The idea here is to buy wholesale and sell retail on eBay.
As I consider this possibility, I ask myself, why Athearn?
I encounter buyers all the time on eBay looking to buy stuff cheap and resell it at a profit. You don't need to limit yourself to reselling Athearn product on eBay.
Essentially, it would be a form of eBay arbitrage. Buy stuff for less and sell stuff for more. Might work,might not.
Rich
Alton Junction
Here's what I would do.. I would attend closed LHS auctions, buy up modeler's estates and would buy collections.
This would take investment money,you will need a pickup truck and enclosed utility trailer and would require commitment as a show dealer and e-bay dealer plus attending the afore mention auctions.
Be warned to do this you got to give up holding your wife's apron string and letting go of your kids hands because you will be busy buying and then selling at train shows and e-Bay. There is money in it but,you gotta learn to be competitive in your pricing..Did I mention you start in the hole(table rental) and the not so tasty food? How about getting up at 4 am to head out to the show or maybe having the need to rent a motel room? How about doing two shows every weekend or doing a three day show? Having fun yet?
Its not a life style most folk would care to choose.
BRAKIE Be warned to do this you got to give up holding your wife's apron string and letting go of your kids hands because you will be busy buying and then selling at train shows and e-Bay. ..
Be warned to do this you got to give up holding your wife's apron string and letting go of your kids hands because you will be busy buying and then selling at train shows and e-Bay. ..
Larry, the OP has no wife and kits - thats probably a ways off. Still at home in his parents house and AFAIK, no car, no drivers license and very little funds - basically how I was when I was sixteen or seventeen.
It's good to have grand plans of course, but one has to be realistic on what can be accomplished while under those circumstances. But, you gotta start somewhere, but it might not happen so quickly. Patience grasshopper.
I've been looking for a deal on CV bridges on Ebay. Very rare. $33 at MTS
Most often they start in the mid 30's and trend to the mid $40's One guy wants $60 with free shipping. The guys selling in the high 40's and 50's could be making more money, but maybe they aren't selling any or just one or two a year.
How do you think Mom and Pop stores lasted decades and some of those folk didn't even have a high school diploma.
Starting a small business doesn't require a business degree it does require lots of commitment.
I've seen Asian restaurants where the owners could barely speak english yet the resturant was packed with customers..
That's true, I have no drivers license (no permit for that matter), car I have one that I purchased (it just doesn't have an engine, transmission, or interior), funds yes I am in a bit of a money pinch right now, that's the reason I am trying to start a low investment business...
As I said my dad used to buy a case of a dozen action figures, list them on ebay, on would go for a fortune, the rest not so much, you'd make what you paid and at least 50% more, a case was only about 50 bucks so it might be the ticket...
I really appreciate everyone's responses
NWP SWP I am trying to find a low initial investment business that will help me build capital to finance a bigger business...
Its tough to make money by just being a middle-man....buying from one group just to turn around and sell to another, without adding any value to the product. That business model is disappearing due to internet visibility and quick delivery of product. You need to have a huge investment to become the size you need to live off of low margin/high volume that's becoming the norm.
You'd be better off as a cottage business adding value to the trains, which usuallly invovles a skill or talent.
Weathering models might be a nice way.
Buy from train shows, big lots on ebay to save shipping costs, estates, etc. If you learn how to properly weather these items, you may be able to triple or quadruple your purchase price. In this RTR world where modelers want to buy items ready to go, I see nicely weathered models sell on ebay at good prices quite frequently. Trains shows might be an outlet, but those patrons can be bottom feeders looking for you to give away the item.
Investment is only an airbrush, quality brushes, and paint/detail supplies.
Of course, you have to have talent and develop the skill; but you don't need a lot of cash to get those things.
And in the end, you'll probably only make enough money to finance your hobby or a few vacations. You'll still need a "real" job to support your life when the time comes.
- Douglas
riogrande5761 BRAKIE Be warned to do this you got to give up holding your wife's apron string and letting go of your kids hands because you will be busy buying and then selling at train shows and e-Bay. .. Larry, the OP has no wife and kits - thats probably a ways off. Still at home in his parents house and AFAIK, no car, no drivers license and very little funds - basically how I was when I was sixteen or seventeen. It's good to have grand plans of course, but one has to be realistic on what can be accomplished while under those circumstances. But, you gotta start somewhere, but it might not happen so quickly. Patience grasshopper.
I fully undederstand that and think the kid has a lot of dreams right now.
I was mostly addressing the doom and gloom sayers. If one has the drive and some upfront money he/she can become a train show/e-Bay dealer and make money in the process..