Importing bikes to overseas is a much more complex process even though it might appear to be an attractive proposition to you in the first glance. With surplus charges of import duty, transport and insurance cost and storage charges, You’ll probably need to manage your import investment so that the cost and charges you’ll have to pay for the import of the bikes don’t make a loss on the deal. If you really want importing to be profitable then go through these tips that can help you manage your import investment and make a reasonable return on investment after you have paid the import charges.
1. Make sure you can afford to finance the import charges
Importing bikes is a cash-intensive process as you have to pay high shipping charges or transport cost (Depending on the country you are importing) and if you’re importing bikes as a part of smaller order then there are chances that it won’t be much cost effective. You’ll need to run cash flow forecast to run your business effectively and tie up the working capital required for the import process. Before you make the import decision check whether it’s overburdening your pocket or can land you in a huge risk.
2. Choose a reliable overseas supplier
It’s really important to source a supplier with whom you’re totally sure that he’ll deliver on time, keep you informed if there is any delay and will deliver the bikes with the level of quality that you’re expecting. You can do a credit check on the supplier and if you’re not able to go for a site visit then at least inspect their quality of services and samples before finalizing the import deal with them. You don’t always need to fall down for the cheapest supplier as most of the times he won’t turn out to be the best choice for importing the bikes.
3. Engage the services of a custom broker
If you’re heading for the import process for the first time then it’s extremely important to engage the services of a freight forwarding personnel that can assist you in saving money at even the minutest places of the import process and he’ll also make you understand the trade terms and will make you understand the financial implications of the order you’re getting ready for import. You need to negotiate the terms of the trade to stay away from getting ransacked if the bike that you’ve to import doesn’t pass quality control test.
4. Exchange rate fluctuations
Being an importer you might also have to deal with the potential risk of exchange rate fluctuation. The rate of the product that you’re importing can always move in your favor or against you. So it’s important to check in advance whether the product you’re importing holds sustainable demand and is it possible for you to sell it at a reasonable profit overseas. If you overlook these points then you might have to incur losses in your business.
4. Take insurance cover
It is necessary to take the insurance cover in every transaction so that if there is a problem in the shipping or international trade cargo then the risk doesn’t fall on your side. It’s important to choose the less costly yet profitable cover to stay away from the risk involved in every transaction. Proper financial management can help you fall prey to the less obvious charges. You’ll have to pay only a charge of a fraction of the sum employed by an external auditor when the market seems profitable.
Take advantage of these import management investments to maximize your profit margin and cut down on extra import costs. Enjoy the full potential of international trade with these lucrative opportunities that can guarantee you maximized profits.
