Quoted from KingPinGames:
So far I have only really looked at Illinois and Minnesota since that is the bulk of my out of state business (with Iowa and texas not too far behind). From what I see in the first two is that if I (as a company) have more than 100 individual sales or $100k in sales IN A 12 MONTH PERIOD (not a calendar year) then I am supposed to collect the state's sales tax. Well, with the cost of the machines that I sell, I exceed that pretty quickly. What I dont know is if that customer base will stay with me if I have to collect sales tax while a smaller volume distributor might not have to, therefore potentially making my sales figures drop under the threshold.
Fun time, fun times indead.
Maybe Stern will start to manufacture machines cheaper, let’s say Brazil and ship them back to the USA. Or maybe Mexico for half the cost? And keep the same prices to keep sales going strong!
As far as distributors go, streamline costs and undercut other distributors (which may mean you take less profit) but you continue to take the sales. (Grow customer base - we call that market share).
I feel bad for you all, cuz I see a squeeze coming on the distributors, not Stern and not much to customers. The customers will start exiting new market based on this tax increase and any Stern increases.
Be first to take advantage of local sales and undercut (take less profit from outside WI) to compete/beat your competition.
Next thing you know distributors who don’t adopt will fade and there will be fewer of you around which means you can monopolize (raise prices/ profits).
Play long ball - short ball sucks coming up!
Oh yeah, any extras you can offer for free, even remote quality support will make your distributorship the step above!