Citius
Guest
But you've only assembled it - you haven't 'made' it. Like others, I'm not really getting it...
Bulk buying frames + groupsets
- Thread starter timbono5
- Start date
Page may contain affiliate links. Please see terms for details.
But you've only assembled it - you haven't 'made' it. Like others, I'm not really getting it...
Hacienda71
Mancunian in self imposed exile in leafy Cheshire
- Location
- Wilmslow, Cheshire
Get the frames from an established manufacturer like Hong Fu, Yoleo or Deng fu or go over and source theframes. Bear in mind you will need to pay import duty and a handling fee.
Check out ADR Carbon to give you some inspiration.
Check out ADR Carbon to give you some inspiration.
Gravity Aided
Legendary Member
- Location
- Land of Lincoln
Business, especially business involving use of a product by the general public, is fraught with pitfalls. I would talk to some people experienced in business law, the bicycle trade, and import/export trading. It's a tough business you want to break into here. Even on a small scale. Here's a guy who did it, though. Grant Petersen-
http://www.rivbike.com/
http://www.mensjournal.com/magazine/bikings-philosopher-crank-20120720
He's also written a couple of books,
Just Ride
Eat Bacon, Don't Jog
http://www.rivbike.com/
http://www.mensjournal.com/magazine/bikings-philosopher-crank-20120720
He's also written a couple of books,
Just Ride
Eat Bacon, Don't Jog
- Location
- Shrewsbury, Shropshire
Seems judging by the comments upthread that you haven't considered the tax implications. There has also been some slightly misleading information given.
To clarify: If you were doing this as a small business you would have to register as a sole trader and would have to keep a full and detailed record of your accounts. Tax is paid on the profit you make (income and turnover are not the same thing) but there is a threshold below which you don't pay any tax anyway.
On top of this there are National Insurance payments to make which are due regardless of whether you made a profit or loss.
VAT probably wouldn't be an issue as the theshold where you have to register is quite high (£82,000 at the moment), however for some businesses there can be an advantage in registering despite being under this limit as you are able to claim back any VAT you pay out on goods you buy in.
Details are on the UK government website: https://www.gov.uk/set-up-sole-trader
I agree with the comments that Trading Standards wouldn't look kindly on selling new goods as used to get round their rules and regs.
To clarify: If you were doing this as a small business you would have to register as a sole trader and would have to keep a full and detailed record of your accounts. Tax is paid on the profit you make (income and turnover are not the same thing) but there is a threshold below which you don't pay any tax anyway.
On top of this there are National Insurance payments to make which are due regardless of whether you made a profit or loss.
VAT probably wouldn't be an issue as the theshold where you have to register is quite high (£82,000 at the moment), however for some businesses there can be an advantage in registering despite being under this limit as you are able to claim back any VAT you pay out on goods you buy in.
Details are on the UK government website: https://www.gov.uk/set-up-sole-trader
I agree with the comments that Trading Standards wouldn't look kindly on selling new goods as used to get round their rules and regs.
DCLane
Found in the Yorkshire hills ...
- Location
- Dewsbury, West Yorkshire
The market is flooded with a lot of people doing the same thing; I'm aware of a company who has done exactly what you're suggesting and they have sold very few frames.
If you are wanting to do this I would recommend you work out how you're going to be distinctive. But then I would; I'm a marketer.
If you are wanting to do this I would recommend you work out how you're going to be distinctive. But then I would; I'm a marketer.
PhilDawson8270
Veteran
If you're acting as a dealer, even selling like this, you will have to sell the product with some kind of warranty. It has to be fit for purpose.
Your plan, in my opinion doesn't have too many flaws, groupsets and frames can be picked up cheaply enough to be competitive. In fact, it's probably why so many "fixies" are around on ebay through small sellers now, due to costs.
The tax and NI isn't too complicated, however, your major obstacle will be with insurance and public liability. Your plan isn't something I'd want to even dip my toe into, without being covered by adequate third party insurance, public liability, and professional indemnity. Your first step, should be getting quotes for these. As an idea as to how I would approach your proposal.
1) Is there a market?
2) How much will adequate insurance, liability, and PI cost?
3) How many units can you shift per year?
4) What is the cost price of the units?
5) With the yearly insurance costs, added to the unit cost, allow you to sell at a competitive price in the market?
6) If all the above give good answers, get a small batch done and see how quickly you can shift the units, in comparison to that predicted in 3)
T.M.H.N.E.T
Rainbows aren't just for world champions
- Location
- Northern Ireland
Are you cytech qualified?
OP
OP
timbono5
New Member
I'm just after some frames, anyone know of any? If I want advice on running the business I'll ask my dad whose a former director of finance at several large companies on what to do rather than listen to hearsay on a bike forum, thanks all the same though. If I want advice on selling the bikes I'll ask my best mate who has won multiple industry awards for digital marketing.
So getting back on topic, anyone have any experience getting frames from the Far East or know of anyone in the UK producing some stock frames?
So getting back on topic, anyone have any experience getting frames from the Far East or know of anyone in the UK producing some stock frames?
PhilDawson8270
Veteran
Why not ask your dad who was a (so-called) "director" for some advice on sourcing cheap parts via import?
Or you could ask your mate for contacts, after all after multiple industry awards for digital marketing, he must have some contacts that know where to get hold of this stuff.
Even these days, it's rare to see anybody so dismissive, aggressive, and arrogant towards people offering well meaning advice, and then still ask for help! If you didn't want any other opinion, then why put that much info in the original post? If it's irrelevant, why not just ask for a source of cheap frames and groupsets?
winjim
Smash the cistern
I think people here are just trying to help, but are genuinely worried about the implications of what you are proposing to do, both for yourself and for your potential customers.
Hacienda71
Mancunian in self imposed exile in leafy Cheshire
- Location
- Wilmslow, Cheshire
I did and have experience of buying from one of the suppliers I quoted in my post.
OP
OP
timbono5
New Member
Yes I've looked on there, it's very interesting. Wonder if anyone has any experience importing through alibaba?
As for the others, I hardly think it's worth considering tax implications or even a company name before even checking whether there are frames out there available to buy. One thing at a time
As for the others, I hardly think it's worth considering tax implications or even a company name before even checking whether there are frames out there available to buy. One thing at a time