(Topic ID: 93830)

LED Bulbs. Cut out the middle man, buy from China for $0.07 each????

By barakandl

9 years ago


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  • 49 posts
  • 30 Pinsiders participating
  • Latest reply 8 years ago by Leeb18509
  • Topic is favorited by 7 Pinsiders

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    14
    #15 9 years ago
    Quoted from Homertv:

    I am sure Art has a pile of really shitty bulbs he would sell you cheap.

    Thousands actually that dont work...you can ask for some free with any order, you can take them apart, maybe fix them....about 80 factories sampled. Hundreds and hundreds that are just bad production. I have had staff at 3 shows, and 4 countries tested too!

    James is right on, as is our friends at Nifty and CT....07 are rejects,,,they do exist.

    Some info under TMI....

    I can only share the following.
    Each new bulb to stock is a minimum of 10K.

    Customer service is 18 hours a day, 7 days a week. 120-150 email questions a day...you'll need 6 hours or more just for that. Employees, 4, salaries, insurance, rent.
    Whether one is the largest or smallest company. it is more work and cost then most people realize.

    Ill also add honestly, the variety of quality.....do you think the big players are buying at $.07 and selling for over $1.00?
    Zizzle vs Stern. Rectified? Virgin resin? etc....

    Many bulbs, with feet on the ground in China, have a 20%-50% markup here after import, so after all expenses and taxes, (6% shipping, 2.75% CC. Free shipping 3.3%, Cost of inventory, 10%, Labor cost 8%-12%, Operating costs, and taxes....About $.03 a bulb left for profit on the low end bulbs.

    So, indeed OP, you can likely buy a few thousand, and save some money,,,about $50, for a thousand of one color one base, but turning ideas into a business is often misunderstood.

    But you are right, more competition does bring better things, but ultimately, there has to be some return to function as a business.

    After 38 years in my regular field of jewelry manufacturing, for TV, Department Stores, and retail stores,
    I can share that price only..... kills an industry faster then anything.

    So no discouragement here, please do try...just be prepared, ,....be ready for
    100-120 work weeks!

    Art

    #16 9 years ago

    I love the Wall Art, James!!!

    #18 9 years ago

    Some....but in standard business models and ROI...., not really.
    Lets see, I make about $7.00 an hour....and 8% pre tax...
    hmmm. I should listen to my Doctors and Accountant....

    Pinheads are lucky....Our LED bulbs average $.50 in the hobby...($.26-$.75)

    Here is how the world makes money on LEDs.

    1 Bulb, Home Depot....$9.87 each

    http://www.homedepot.com/p/Nite-Ize-C-D-Cell-L-E-D-Upgrade-Kit-LRB-07-PR/203002218

    1 Bulb, $12.99 Autozone:

    http://www.autozone.com/autozone/parts/Sylvania-LED-Daytime-Running-Light-Mini-Bulb/_/N-9cjds?itemIdentifier=449375_0_0_

    I can go on, but Nike sneakers can be under $3 in S Korea factory,
    A plate of pasta, flour, egg and water is $.33, and sold for $10.

    So you can see what storefronts charge.

    All vendors, I believe are fellow pinheads...we do it for pinball and a bit.

    Personally...not at all for the "money", but yes there is some...losing money is easy, making a little
    with hard work is a hobby or passion.

    #35 9 years ago
    Quoted from herg:

    I'm not sure he sleeps at all.

    Whats Sleep?

    Just to jump in on shipping....We average $11-$14....our cost we pass on which includes insurance, to Canada...
    Not too bad I hope....

    I hate to leave the insurance out for $1.00.....

    1 year later

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