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Suppose you are interested in becoming a middleman but are not familiar with it. Don’t worry! I will introduce what a middleman is.
The term “middleman” is an informal term that refers to acting as an intermediary in a distribution or transaction chain, facilitating interaction between the parties involved. Intermediaries specialize in crucial activities in purchasing and selling goods from the producer to the final buyer. They usually don’t produce anything but have extensive market knowledge, so they charge commissions or service fees. In addition to these, the middleman can make money by selling the product at a higher price than the purchase price. This difference is referred to as the “mark up” or the buyer’s final cost.
A middleman is a business done by many people. With the help of these middlemen, shoes produced by the shoe factory will be distributed to others. These people may be wholesalers, retailers, or distributors. The primary purpose of intermediaries is to make profits to get products from China shoe manufacturers at the lowest possible price. Then they will sell the shoes to wholesalers, retailers, or distributors to make a lot of profits.
Becoming an independent middleman is an excellent career for those who want to work for themselves because it’s not a typical office job. You have the right to choose to work more or less, depending on how much you want to earn.
Of course, if the sales of the middlemen’s products are unreasonable and the sources of products are irregular, it is also a risk of loss. Therefore, this requires that the middleman can not find a Chinese shoe factory to produce shoes at will, and it is also essential for the preparatory work.
Like opening a shoe store, you need to find out the type, grade, and target group of shoes you want to represent. What kind of shoe factory or shoe manufacturer do you want to find? Do you want to find a China shoe factory with a medium and high-quality custom shoe or find private label running shoe manufacturers, private label sneakers manufacturers, private label casual shoes manufacturers, private label hiking shoes manufacturers or find the shoe factory that produces a low quality of cheap shoes? If you want to be a middleman of the shoe factory providing custom shoes or private label shoes, it is an excellent choice to be our middleman.
Features of being a middleman:
A middleman is an intermediary in a process or transaction.
In return for providing services to match buyers and sellers, the middleman will receive a fee or commission.
Many industrial and commercial sectors use intermediaries, ranging from trade and commerce to wholesalers to stockbrokers.
Now, I believe that you should understand what a middleman is. Then what are the advantages of being a middleman? Let’s read on!
Here are some benefits of being a middleman:
There are many advantages to being a independent middleman for those interested in working freely. This type of job allows a person to work in a field they like while controlling their own time.
※ Flexibility
As an independent middleman, you can flexibly have your working hours and be your boss. You can control your career, especially when it comes to scheduling. You can go to work from your living room at the most convenience and arrange meetings with clients at the right time, having to commute to work every day as a regular office worker. This Flexibility makes it easier for you to achieve work-life balance, which is a significant advantage for people interested in working at home, whether they have a family to take care of or they like to stay in their place.
※ Limitless Income Opportunity
There is no limit to the income of a middleman. Because the wholesalers, retailers, and distributors you contact do not have fixed orders. They need more orders, you have more income, so as long as the orders are continuous, you will have more and more money, which is entirely different from ordinary office workers. You don’t need to get a fixed salary every month like an office worker, and you don’t need to have a lot of fixed expenses every month like a boss. Your income is not limited, which is also the benefit of other jobs. Once you get in touch with clients who need shoes, there’s a certain amount of revenue. Because the shoe factory generally has its MOQ (Minimum Order Quantity), you can decide to increase the MOQ for your clients according to the MOQ provided by the shoe factory so that the income can be guaranteed to a certain extent.
※ Self-Employed
A middleman works primarily on yourself but will sign contracts for products or services with companies you want to represent. In this case, you can be your boss and make decisions about your job without having to consult others or face the pressure of running your own business. For example, you want to be a shoe middleman for the shoe factory, but there are many kinds of shoes, such as running shoes, leisure shoes, sneakers, and hiking shoes. You can choose one type or several, and it’s all up to you. Once you’ve made your choice, it’s time to choose the right company, because some companies offer you the product and don’t offer any other help. However, some companies will be friendly and offer you support and guidance beyond the product. So, before choosing to become a middleman for a shoe factory, be sure to review your agency agreement carefully. When you select good companies, discuss the details of cooperation with them and sign an agency contract.
※ Higher Total Profits
Although the rate of profit of being a middleman is relatively low, the total profit will be higher than that of opening a shoe store. If a shoe store is on yourself, it is very slow to make a big turnover. But, as a middleman, if you successfully link a big client, the business will grow rapidly, and the total commission you get will be more than the profit you earn from opening a shoe store. And, with the passage of time, there are going to get bigger orders, and so are profits. In addition, compared with the failure rate of starting a shoe business by oneself, it is lowest of being a middleman and the risk is smallest. The failure rate of starting a business is as high as 95% – 99%, while that of being a middleman is only 3% – 5%. Therefore, it is a good choice to be a middleman.
※ Additional Benefits:
◇All profits are kept to yourself.
◇Being a middleman is not afraid of overstocking the goods.
◇It’s relatively cheaper to buy shoes from the shoe factory in China. And it can be guaranteed of the supply of goods.
◇It is significantly reduced the cost of advertising.
◇You can get at least 5% of the profit by the supply price difference when you offer your franchisee shoes.
Article Source: How To Start Shoe Business
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