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OK. So I'm just going to quickly explain 2

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what price do 3

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you need to be looking for. So the price that you're 4

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going to want to get is about a 5

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33 percent margin. 6

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OK. 7

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So what does that mean. 8

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So if you sell this for 15 dollars This 9

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means that you would essentially get 33 10

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percent of that back as total profit after 11

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Amazon fees 12

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and then all the 13

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other fees included not including PPC. 14

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So you do this by looking into Amazon 15

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FBA profit calculator 16

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or going to the viral launch calculator 17

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going to Amazon page 18

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and hitting the chrome extension essentially 19

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lets say we're going to sell 20

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this for 15 dollars. 21

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We would end up getting eight 22

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dollars back after Amazon fees. 23

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OK. 24

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So if we want to get 33 25

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percent of that what I would do is just take up the 26

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calculator here .33 27

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times the sales price of 15. 28

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So we want to get five dollars profit. 29

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OK. 30

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So essentially what this means is that right here we 31

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want this 4.95 To be there 32

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so you could end up paying two 33

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dollars and fifty cents for the product. 34

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And then if you recalculate 35

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it so we recalculate what 36

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two dollars and fifty cents 37

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and then we had 50 cents 38

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for shipping. 39

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Essentially what we know is that we 40

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could get this product for two dollars 41

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and fifty cents is what we would 42

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need to source it from. 43

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So when we're looking around on Alibaba 44

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so if we look up a horse mask 45

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we 46

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know that we want to get this for about two dollars and 47

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fifty cents to do this profitably. 48

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All right. 49

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So that's what we'll 50

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be doing when we're going and negotiating on 51

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the price with manufacturer. 52

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And so. 53

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Another trick you. 54

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you're getting the best price possible is going to 1688.com 55

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So I can't connect 1688. 56

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Right now we have an in-depth video 57

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on it later but essentially it's where Chinese 58

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suppliers go to buy 59

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and sell to other Chinese suppliers. 60

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So you're going to go 61

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and figure out the Chinese price 62

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because the Chinese e-commerce 63

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market is a lot more competitive 64

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and advanced. 65

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You'll find out that they can't offer highly 66

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inflated prices on that marketplace because it's 67

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so competitive. So that's a 68

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way that we can check what the actual you 69

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know best price that 70

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we can sources for is. 71

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But you'll be able to find that out by watching an 72

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in-depth video that's later 73

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in the course. So just know that in 74

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general you need to get about 33 75

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percent or higher margin. The higher the margin 76

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the better. All right. 77

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And like I've 78

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said I always focus on ROI. 79

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So if I can get a 200 80

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percent ROI 81

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or higher that's really gonna help me exponentially 82

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girl my business 83

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and same 84

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with you and the you 85

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never want to go less than 100 percent 86

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ROI unless you know what you're doing. 87

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But on your first product definitely make 88

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at least 100 percent ROI. 89

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As we're looking at the prices on Alibaba 90

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it's 91

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not the end of the world yet their 92

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prices aren't always the most accurate. 93

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So you're obviously not going to get these for 12 94

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cents a piece. 95

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They just have 12 cents as 96

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the lowest one just to get you to click. 97

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So by using a tiered questionnaire 98

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and asking you know what's the price for a 99

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thousand five thousand units we're going 100

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to find out kind of what their true price what they 101

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quote us at as we 102

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can negotiate a little bit down from there. But yeah 103

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that's a general way to figure out. 104

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So don't always just believe the 105

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price that they put on Alibaba. 106

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Will often be a lot different in an 107

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actual quote that you get from them once 108

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you've decided that it's somebody worth your time go 109

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and hadn't actually asking a 110

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question for them. 111

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So I guess what my tip here is as we're 112

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looking at the prices on Alibaba we 113

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want to be looking at this is it extremely 114

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high then probably you 115

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know avoid that supplier 116

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and if it's extremely low you 117

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don't need to cut them out but you know it's something 118

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that just take into account find 119

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something that's generally in your range. 120

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But knowing that actually looking 121

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and 122

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finding the best manufacturers by the other 123

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methodologies that we talk about 124

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and then getting the actual court 125

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from them is going to be the best methodology 126

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because the price that they list is 127

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kind of click bait just 128

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to get you to come into the listing or something. 129

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But a high price 130

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is going to indicate that it's probably a trading 131

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company. So and say if 132

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it's a low MOQ it is. 133

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So really low MOQ high 134

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price probably trading company. 135

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So yeah you know I'm 136

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looking for somebody who is going to give us some. 137

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This is about the right price range 138

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a dollar 75 to 3.08 And 139

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what not. You know this 12 cents 140

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you're not going to get these for 12 141

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cents apiece. So if 142

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you guys have any questions about this keep watching 143

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or posted on here 144

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and I'd be glad to answer. 145

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So on to the next video.