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How would I go about getting a reseller's license?
- Thread starter MAME
- Start date
NikPreviousAcct
No Lifer
Your first step is to post on Anandtech about it, like everyone else does for every other idiotic idea they happen to stumble across in the middle of the night.
j/k
j/k
Must start a business first of all. Go to your municipality for that and they will have more information. It is usually pretty damn cheap (~ $100) to start a legal proprietorship. Then you apply to get a tax account number (at least in Canada). Then you apply to the distributors, and many of these guys require a MINIMAL amount of $10,000+ in a business bank account last time I checked.
imported_Mike
Lifer
you think distributors will give you a decent wholesale price for a "spare" time job? You want a hook up on computer parts, id go get a part time job @ a retail store.
to get wholesale prices, you typically need to have the business license and a business tax ID
the first purchase will need to be a predetermined amount (this amount depends on the distributer). many distributors also have returning purchase amounts per year or per month.
I can get you more info tomorow...my wife set up both of our businesses, so she's the one to ask :\
the first purchase will need to be a predetermined amount (this amount depends on the distributer). many distributors also have returning purchase amounts per year or per month.
I can get you more info tomorow...my wife set up both of our businesses, so she's the one to ask :\
ThisIsMatt
Banned
You'd still probably pay more than retail prices from newegg. You just won't move enough to get "wholesale" prices.
Setting up a company is easy and not expensive at all. I'd recommend doing it as an LLC rather than a proprietorship. Then you'll need a sales tax license and a bank account for the business. None of this is expensive, but you're committing to file the necessary paperwork on a regular basis documenting your sales, taxable and nontaxable revenue, and sales taxes collected. This will may have to be done monthly, quarterly, semi-annually, or annually depending on what the state thinks is reasonable for your business.
There are plenty of small wholesale companies that offer decent prices with small or no minimums and a lot of internet retailers will also sell at a reduced rate to another dealer without requiring a large minimum order or annual sales volume.
As a spare-time job, it's very doable and not difficult. The tax laws for small retailers have even been greatly simplified in recent years, making it even easier than it used to be. The biggest issue is that you do have to keep receipts and records and file the appropriate paperwork on schedule. If you aren't going to do this, then don't start a business. Be sure you're prepared for a lot more support time and expense than you can imagine. Eat weird stuff before going to bed and have a few nightmares about customers from hell; be sure you figure them into your business plan as well.
There are plenty of small wholesale companies that offer decent prices with small or no minimums and a lot of internet retailers will also sell at a reduced rate to another dealer without requiring a large minimum order or annual sales volume.
As a spare-time job, it's very doable and not difficult. The tax laws for small retailers have even been greatly simplified in recent years, making it even easier than it used to be. The biggest issue is that you do have to keep receipts and records and file the appropriate paperwork on schedule. If you aren't going to do this, then don't start a business. Be sure you're prepared for a lot more support time and expense than you can imagine. Eat weird stuff before going to bed and have a few nightmares about customers from hell; be sure you figure them into your business plan as well.
I speak from experience having done all the pricing for a very large wholesale company, and let me tell you, buying at wholesale you're not going to shave more then a few pennies at most compared to just ordering through newegg. I have no clue where people get the idea that the markup is high on computer parts, as it really isn't. The only reason you see stuff selling once in awhile in a b&m ad for what seems like a steal is that it's just a loss leader for them. Saying that, just order from Newegg. For awhile I built systmes on the side and pricing it out, I usually only paid $2 more/less ordering from them, versus wholesale.
They make money on volume, but they also benefit from how much they order, whether it be direct from manufacturer or their distributor. The only way to make money in the computer hardware buisness is being able to order in large volumes, and to be able to order direct from manufacturers or direct distributors. Any local wholesale company isn't going to order in great numbers, so they can't pass any pricing breaks on to you. The last job I had we got considerate discounts, but that's because I was ordering enough parts to build 300+ at a time, and some of the stuff we were able to purchase direct from manufacturers, but that was mostly for the LCD's.
MrCodeDude
Lifer
You don't need a license to sell a computer, do you? If not, just keep selling stuff, what's the government going to do?
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