Thinking about becoming a dealer

[Jim the Brave]

I'm looking into the possibility of becoming a knife and tool dealer, particularly on the gun and knife show circuit locally, and with internet sales.

Anybody have much experience with that? I'm tossing the idea around....haven't told the Missus yet that I'm thinking on it....

Any thoughts?

BTW, if I do become a dealer, I will be happy to see about some advertising purchases here on the MTO. 

[Alan K.]

If you do this you should focus on internet sales. Gun and knife shows are expensive and time consuming and you'll have losses due to damage from packing and unpacking your stuff every weekend and pilferage. If you do outdoor events your stuff will get dusty and rusty or dried and faded due to exposure to weather or sunlight.

If you want to do this I'd advise you to become an authorized dealer for well known companies and don't just get caught up in the hype of the late night infomercials. However, selling the good stuff from name brands such as Buck, Gerber, and Leatherman has a very slim profit margin and you're competing against retailers such as Wal-Mart, but you do have to have some of the cheap stuff so the customers have choices.  Always have cookie jars of grab and go items for $1 because that's the stuff that parents will buy for their kids or some people will buy just to be nice because you took the time to talk to them.  Sometimes the $1 items made the difference between making a profit or not and some shows they were the only things that sold.

I bought close to $3000 worth of knives from those Cutlery Corner late night infomercials back in 2011. My average cost per knife in 2011 worked out to $1.87 each. That was $1 per knife plus shipping.  I sold folders for $10 and offered quantity discounts, small fixies for $10 and large fixies for $20.  They paid for themselves long ago so it's all profit now, but sales are few and far between and I still have a lot of the stuff I ordered 10 years ago.  I'd go to a church sale or flea market and be lucky to make $20 or $30 for the day, after expenses including fuel, meals, how much they charge to do the show, and the price of inventory.  However, there haven't been any shows for nearly a year.  Gun shows are $100 a table here and the last time I worked one I managed to pull a slim profit after expenses of about $40 but only because I split the cost of the table with a buddy who also had some stuff to sell.  The dealer packages at Cutlery Corner are more expensive now but the prices you can sell the knives for is the same.

Try to do some shows and internet sales and see how it goes, but don't give up your day job to sell knives full time. Just don't.

[jch10400]

I don't have experience selling at shows, but as a retired CPA I'd suggest becoming familiar with the various business license / tax collection laws for your area before you make your decision.  In my state, anyone who wants to rent a table at a local show has to provide a sales tax certificate, which in turn means you need to report a sales $ amount to the state and send in the appropriate sales tax. I think most of the big internet sales sites take care of this for you, but don't know that for sure.

[Poncho65]

Welcome to jch

If you do decide to sell tools and knives, good luck If you want to advertise any here just contact Grant Lamontagne about it and discuss it with him first

[Jim the Brave]

If you do this you should focus on internet sales. Yes, I plan to, thanks....Gun and knife shows are expensive and time consuming and you'll have losses due to damage from packing and unpacking your stuff every weekend and pilferage.Very good points. I would try it once or twice and see how it goes, if not well, I would be internet only/mostly If you do outdoor events your stuff will get dusty and rusty or dried and faded due to exposure to weather or sunlight. Eww yuck, good point

If you want to do this I'd advise you to become an authorized dealer for well known companies and don't just get caught up in the hype of the late night infomercials. Gotcha, not an infomercial dude myself. However, selling the good stuff from name brands such as Buck, Gerber, and Leatherman has a very slim profit margin and you're competing against retailers such as Wal-Mart, Yepbut you do have to have some of the cheap stuff so the customers have choices. I definitely plan on that.  Always have cookie jars of grab and go items for $1 because that's the stuff that parents will buy for their kids or some people will buy just to be nice because you took the time to talk to them. Definitely part of the plan. Sometimes the $1 items made the difference between making a profit or not and some shows they were the only things that sold. Having done some retail before, I can believe that for sure.

I bought close to $3000 worth of knives from those Cutlery Corner late night infomercials back in 2011. My average cost per knife in 2011 worked out to $1.87 each. That was $1 per knife plus shipping.  I sold folders for $10 and offered quantity discounts, small fixies for $10 and large fixies for $20.  Well that's some decent margin...They paid for themselves long ago so it's all profit now, but sales are few and far between and I still have a lot of the stuff I ordered 10 years ago.  I'd go to a church sale or flea market and be lucky to make $20 or $30 for the day, after expenses including fuel, meals, how much they charge to do the show, and the price of inventory.  However, there haven't been any shows for nearly a year. We are still having them here in SC, so far.... Gun shows are $100 a table here and the last time I worked one I managed to pull a slim profit after expenses of about $40 but only because I split the cost of the table with a buddy who also had some stuff to sell.  The dealer packages at Cutlery Corner are more expensive now but the prices you can sell the knives for is the same.

Try to do some shows and internet sales and see how it goes, but don't give up your day job to sell knives full time. Just don't. Thanks, I have no plans to give up my day job, this would be an additional source of income. (I do Ebay now in a small way)

I don't have experience selling at shows, but as a retired CPA I'd suggest becoming familiar with the various business license / tax collection laws for your area before you make your decision.  In my state, anyone who wants to rent a table at a local show has to provide a sales tax certificate, which in turn means you need to report a sales $ amount to the state and send in the appropriate sales tax.Definitely. I did retail once or twice before and had a sales tax number. I would be starting fresh this time, though.... I am aware of what's needed and plan on getting legally squared away if I choose to do this. I think most of the big internet sales sites take care of this for you, but don't know that for sure. Ebay does.....

[Jim the Brave]

Thanks for the input, y'all. If I do this thing I will plan on selling some good name brands and also some cheapies and a lot of used knives.

I probably will also do some military history books, as they seem to sell well and I am familiar with the topic.

 

[Jim the Brave]

Well I ordered some bulk lots of used stuff....so I guess I need to get my tax id stuff squared away and start advertising! Although there's not much point getting my advertising going until my inventory begins to arrive. 

[pfrsantos]

You could try to get some items listed in free internet sales sites. It could give you an idea of prices people are willing to pay.

It also gives you a global display window, to literally thousands of prospective buyers.

If you provide a good customer service, it's another way to build a good reputation. You can go on to get your own site.

Good luck!

 

[SteveC]

It's a tough business to be in. There is a lot of competition out there both from businesses and private sellers on ebay.

[Jim the Brave]

It's a tough business to be in. There is a lot of competition out there both from businesses and private sellers on ebay.

Yes. I've done a good bit of Ebay selling already, so I know the system somewhat. I suspect the majority of my sales will be on there. Not saying it's easy.

[Jim the Brave]

Well, nearly 4 months later, I have been selling knives like crazy.

Am I a dealer? No, not a certified dealer of new goods. But I have been able to make a very nice little side gig of it.

My sales have been primarily in the following categories:

1. eBay
2. Flea Market
3. Antique Store Consignment
4. In person sales (primarily to friends)

This weekend I embark on my first opportunity to sell at a gun show. A friend asked me to help watch his tables, and I said sure, but only if I can bring my knives......

So, yeah. This is going to be a new adventure.

 

[Echotech]

Good one Jim, hope you sell loads mate

[SteveC]

Best of luck Jim !   

[Aloha]

  Best of luck. 

Its great to make a little change and see someone pick up a tool.  WIN/WIN. 

[Poncho65]

Hope it goes well

[pfrsantos]

 

[ToolJoe]

Good luck Jim!

[Jim the Brave]

Good luck Jim!

Thanks! First day went so-so. $153 in sales. Could be worse. It was a real dead show. There should have been 3x the people there. Heading back in the morning, and we'll see how it goes. This is a heavily-churched area, so Sunday may be even slower, we'll see.

[pfrsantos]

Thanks! First day went so-so. $153 in sales. Could be worse. It was a real dead show. There should have been 3x the people there. Heading back in the morning, and we'll see how it goes. This is a heavily-churched area, so Sunday may be even slower, we'll see.

Or maybe people will stop by, after church. Since they're out of the house, anyway.

 

[Jim the Brave]

Or maybe people will stop by, after church. Since they're out of the house, anyway.

 

Well, some folks stopped by. I did around $315 worth of sales total, for both days. Good thing I wasn't paying table rent. As it was, I suppose it was ok. And I bought some interesting stuff, including one thing I just sent to Pipedreams in the giveaway that he won.....

[pipedreams]

 

[pfrsantos]

Well, some folks stopped by. I did around $315 worth of sales total, for both days. Good thing I wasn't paying table rent. As it was, I suppose it was ok. And I bought some interesting stuff, including one thing I just sent to Pipedreams in the giveaway that he won.....

If it's just a side hustle, I'd say that's not bad. Considering the current situation, with people staying home, some loss of income and knives not being (for non-MToers) bare necessities.

Hope it gets even better with time.

 

[pfrsantos]

If it's just a side hustle, I'd say that's not bad. Considering the current situation, with people staying home, some loss of income and knives not being (for non-MToers) bare necessities.

Hope it gets even better with time.

 

 

[Jim the Brave]

I'm doing consistently well on eBay, though, and I picked up some good cheaply obtained valuable knives at the show. I have one of them listed now, hopefully more tonight.