Are the Trump Tariff's bad for us little guys?

Donald Trump authorized tariffs of 10 percent on an additional $200 billion worth of Chinese imports on July 10, the latest move by the administration to honor the president's promise to take action against unfavorable trade practices. 

Many people are worried about the tarrifs affecting our bottom line, especially for the little guy. Corportations could handle that increase but the little guy may be priced out of the game. So it this tariff good for us or bad. The answer is neither a yes or a no. It is basically how you will navigate the waters. 

I would like to tell you a story of what I recently experienced. We received a call from one of our old costume jewelry manufactureres that wanted to close out some jewelry, then we got to talking... He is from the East Coast of America, where most of the costume jewelry used to be manufactured. Many of those factories shut down, I know this first hand because we lost some of our favorite closeout sources. It was sad to see a company just vanish and so many jobs lost. Many of these people who had expertise in the costume jewelry industry couldn't find jobs because so many costume jewelry manufactureres in the Untied States were shutting down. What was the reason for their shut down? Well, unfortunalty I would guess that China was beating the U.S. on the cost to manufacture these goods. 

The good news is, that many retailers are not seeking to get Costume Jewelry manufactured in the United States again. The demand is so high that the few manufacturers that didn't shut down can hardly keep up with demand! There is hope that the Costume Jewelry manufacturing industry on the East Coast of America will once again shine bright. 

How does this affect you though? Won't this make things more expensive? Again, I feel it is more how you navigate the waters. For example many U.S. based companies liquidate their goods. Their goods are usually better quality and can handle the travels down the supply chain. If you are thinking you are going to be priced out of the business, that is where I would point you to. Look for closeouts, you will be able to get items that a well made for better prices compared to importing. 

As far as people who do private label manufacturing in China, they will probably take a hit because they will be competing with the big guys who will still be able to drive down their costs in other channels. Where the little guy pays more to begin with since they don't order serveral thousands of pieces. In addition to that, we may all see the price of certain things go up. All in all, I still don't think this tariff thing is so bad. 10% shouldn't cause too much concern for anyone, but it may be enough to make retailers choose the United States as their choice for manufacturing and that can have a positive effect. If the tariff prices do seem to start affecting the consmers of the United States, then maybe people need to look into consuming less, repurposing and focusing on quality over quantity. Maybe in an indirect way this will even help our planet?

What ideas do you have about the tariffs? Do you have any business strategies that you can share with the little guys reading this blog, who need ideas on how to stay ahead of the game?



Amazon FBA automation ? Scam or Opportunity?

A few days ago I saw an interesting advertisement on Facebook. It was for a new service that I have not seen before. Amazon Automation. This is not to be confused with coaching. The company basically offers to manage you amazon account, add a bunch of drop shipping products that are proven sellers to the inventory of your amazon account, then when a order comes through their team would place the order for you with the drop shipper to ship out the product. 

I watched their explanation video, they claim that within 4-7 months they will have your store doing $100,000 in sales per month. With a profit margin of 10-22%. That would leave you with $10,000 - $22,000 income per month. 

So here are some questions that popped in my head.... Why would they do this for other people? Why not create more accounts for themsevles and keep all the profit for themselves? They said it is because after a few accounts Amazon will find out and not allow multiple accounts. I personally feel that doesn't make sense. They could open up several businesses and corporations and each of them would be a different entity, therefore I don't see on what grounds Amazon would deny them. 

Let's just say what they are saying about that is true. I wanted to know what is in it for them? They said that they will take 33% of the profits they get you every month. For example, the $100,000 in sales = $10,000 profit - 33% = $6,700. You would basically be left with $6,700 a month in income after their 1/3 fee. This part I was totaly ok with, if they are making sales for you and doing all the work involved in it, they deserve to get a cut. 

However, THAT'S NOT ALL FOLKS! Here is where the doozy comes in, they charge a $15,000 sign on fee, that must be payable via bank transfer, wire not credit card. Knowing that I would then not be protected by my credit card, I asked if they have a contract where their claims are in writing. He said yes, however he can not guaratee the $100,000 in sales even though he knows he can get there. Keep in mind this program is being instroduced by a multi-million dollar Amazon seller and coach. A legit one. 

More questions came to mind, if he can't put his claims into writing, $15,000 is a lot of money to risk on people whoe seem pretty nice but I don't really know personally. How am I protected here? The answer is, I am not. He mentioned that he would not fabricate his claims because his name is on the line, he has a facebook group and many people he coaches, he welcomed the opportunity for us to go on the facebook group and ask about him. If he lied , we would go on facebook and ruin him or on the internet. 

That is true, however $15,000 is still a ton of money to take a risk on without any sort of claims in writing. I ask for them to send me the agreement they do have. What they say in there is basically that "they are only building you a store" , "they can not guarantee you will make ANY MONEY" , "they can not guarantee the longevity of your store". These statements sort of caused some red flags. 

I really liked the guy, and I do for some reason trust him and belive he is telling the truth. However there is still a risk and the amount of money is a big gample. I messaged them and let them know that if they were willing to modify their agreement addressing all their claims that I would do business with them. Unfortunatly they wre not willing to do that. I really would like to make that $6,700 a month on automation, but I just don't know. If this guy screws me over I probably wouldn't forget about that money for almsot ever....

What would you do? Would you send him the money or continue building your own Amazon seller account?

How to price your jewelry on ebay
Pricing jewelry is an art farm. It can be truly confusing. You don't want to price it too high and you don't want to price it too low. If you price it too high it will stay in your store forever, and if you price it too low you don't make enough profit. A good way to determine how much to list your product for is by looking at the past sales. This is one of the gems of knowledge eBay provides. It really helps sellers figure out how much their products could sell for, not just how much people are asking for them.
How to take the right pictures of jewelry to sell on Ebay
It can be challenging to make your jewelry stand out to buyers on eBay. Buyers scroll through the eBay gallery and it can easily get blended into the abyss of the other pieces. In this post we will try to provide you with useful tips to get buyers to click on your products and hopefully complete a sale.
How to use the right keywords to sell jewelry on Ebay
Selling on Ebay can seem like a daunting task with all the competition. Especially products like jewelry, how do you get someone to find your listing? Well, that is actually the first step. You first need to get buyers to find your listing amongst all the rest on ebay. How do you do that? That would be KEYWORDS my friends. You need to use the right KEYWORDS for each piece. We would like to give you an example. Below we have two jewelry pieces that are very similar. However, one sold for almost 4 times as much. Let's take a look at how the more expensive one has better key words. First, you need to put yourself in your buyer's shoes