Why Starting a B&B Business is a Great Idea!
When you start a new home business, Do you know if you want to be a manufacturer, a wholesaler or a retailer? Who makes the most profit after all expenses? Here’s what experience has taught us! Most people start home businesses the hardest way possible — and that’s why they fail. I’m Tim, and with my wife, Anita, we’ve built and maintained businesses for over a combined 50 years, and now as we retire, we’re going to give you our knowledge and experience so you can start your own profitable business. The ONLY think we ask of you is to join in on our discussions so everyone will benefit from everyone’s knowledge and you can be on your way to making a great home business like we had, sometimes making over $30K dollars a month! Now Let’s compare profit margins: Manufacturers: They typically have moderate net profit margins (5-20%). High initial investment in equipment and R&D can limit net profits. They produce goods, incurring costs for raw materials, labor, equipment, and facilities. They sell to wholesalers or retailers at a markup. Profit margins vary widely by industry (e.g., 5-20%). Wholesalers: They typically often have the lowest net margins (2-10%) since they compete on price and rely on high sales volume. They buy goods in bulk from manufacturers and sell them to retailers or other businesses, often at lower margins (2-10%) due to high volume and lower per-unit overhead. Retailers: They Sell directly to consumers, often at the highest markup per unit. They can achieve high gross margins (20-50%), however, net margins are often lower (3-10%) due to high overhead costs like storefronts, personnel costs and advertising. Who Makes the Most Money? In General...Retailers often have the highest *per-unit profit margins* due to direct consumer sales, but manufacturers tend to generate the highest net total profits in industries where they control branding, innovation, or scale. Wholesalers typically earn the least. So...What business makes the most money? My Answer?… The person that does all three! They manufacture their products, they wholesale to stores and they also retail their products online and at craft fairs, etc. That’s where you can make overall profits from 50-80% on your products!