Hi, Brendan here from China Import Formula. Now one thing I will talk to you about today is risk management. You have to be on top of your risk. Now, remember there’s a saying, “If you manage the downside, the upside will take care of itself.” So look after your risk to make sure you’ve manage them accordingly.
So I wanna share with you a story before I give you 3 tips. The biggest risk and the biggest mistake I probably made in my importing career spanning over 15 years is I forgot to have an insurance policy and I had a warehouse fire where all my goods burned down. For $450 for an insurance policy, I would have saved myself hundreds of thousands of dollars in stock. And one thing I learned from this very, very expensive mistake is you must be aware of all the risks and have a plan for them.
So 3 things to consider, firstly is that there’ll gonna be local standards for your products, okay? So if you’re bringing them into Australia or New Zealand or the USA, the governments will have certain rules and regulations and you need to comply with those standards so you don’t end up bringing goods which gets seized by local customs.
Second is that a lot of goods will have tariffs and taxes that the government will charge and it’s very important that you understand what these are and you get the right advise before you bring them in, otherwise you’re gonna find there might be 5, 10, 15, 20 percent charge on top that you haven’t factored in.
The third thing that you must consider is of course the quality control of your product. You might have the best product in the world that you can sell like hot cakes but if you haven’t done your quality control properly, you won’t be out to sell your item. So there are some very important tips to consider and remember, some products will have more risk and more reward and some will have less risk and less reward. So before you start on your importing journey, understand where you fit on the risk spectrum and only bring in goods and products that matched your risk appetite.
So these are some tips for today, be on top of your risk and stay tuned for some more tips coming up soon.