Alexei Volkov
Plastic modelling is a rewarding hobby that involves assembling scale models of real-life or fictional items. The process of becoming a reseller of plastic models involves buying products from a manufacturer, vendor, or wholesaler at a lower cost and reselling them at a higher cost. This can be done online or through traditional offline channels. As a reseller, you may carry inventory or ship goods directly to the customer. To succeed in this venture, it is important to understand the reseller industry, find the right products, and conduct market research to assess demand, competition, and price points. Additionally, developing your model-building skills and understanding the latest trends in plastic modelling can enhance your expertise in the field.
| Characteristics | Values |
|---|---|
| Definition of reseller | A reseller is a business or business owner that buys a product from a manufacturer, vendor, or wholesaler at a lower cost and "resells" that product at a higher cost, either online or through traditional offline direct channels. |
| Business model | The reseller sells the product at a retail price set by the vendor and receives compensation as a fixed percentage off each unit sold. |
| Rights and regulations | Before signing a reseller agreement, it is important to understand your rights and the contract terms and conditions. |
| Product selection | It is crucial to find the right product(s) that align with your interests and motivations. You don't need to be a product expert, but you should be able to demonstrate the emotional investment needed to make your resale business a success. |
| Market research | Understanding the market landscape, including demand, competition, and price points, is essential for assessing the potential success of your chosen product. |
| Inventory management | Some companies require resellers to carry an inventory, while others may ship goods directly to the end customer. |
| Customer interaction | As a reseller, you act as the transactional/order processing interface, receiving orders from customers and facilitating the delivery of goods. |
| Plastic model types | Plastic models include snap-together kits and glue-together kits, ranging from military vehicles, aircraft, and ships to science fiction characters and model cars. |
| Tools and supplies | Depending on the kit type, you may need tools like hobby knives, sprue cutters, and glue. Paints and accessories can enhance the realism and quality of the final model. |
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What You'll Learn
Understand the reseller business model
The reseller business model is a great way to launch a small business and quickly start selling online. A reseller purchases products from manufacturers, liquidators, individual consumers, and other retailers and then sells them. A reseller business permit, also known as a resale license, resale certificate, or tax exemption certificate, allows resellers to purchase certain items free of sales tax.
There are several different types of reseller business models, each with its own pros and cons. Here are some of the most common types:
- Dropshipping: With the dropshipping business model, you can offer a wide range of products without stocking any inventory. Customers place an order from your e-commerce site, and you purchase the item from a third party. The third party then ships the product directly to your customer. Dropshipping is a low-risk business model as it doesn't require investment in inventory or the costs associated with storing stock.
- Wholesale: With this business model, you buy products in bulk or at a discounted rate and resell them at a higher price point to make a profit.
- Retail arbitrage: This is one of the most popular options as it's easy. In this model, you buy products from stores at a discount and resell them on platforms like Amazon or eBay for a profit.
- Private labeling: With private labeling, you source generic products from manufacturers and sell them under your brand name.
- Value-added reseller: This model involves having your business customers package your SaaS product as an essential add-on product for their own service. When your SaaS resellers are hired by their customers, you make a sale of your software.
The key to a successful reseller business is to understand your chosen niche and the market demand. Follow your passions and consider products you're genuinely interested in or have expertise in. Analyze market trends, assess competition, and evaluate profit potential to ensure there is a market for the products you plan to sell.
Additionally, many resellers provide a value-add to the customer experience. For example, resellers can sell items individually to customers (at a markup) and create a branded customer experience through in-depth product descriptions and reviews, customer loyalty programs, and customer support. Effective marketing strategies and specific expertise or knowledge of an industry or demographic can also contribute to the success of a reseller business.
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Identify the right plastic models to resell
Identifying the right plastic models to resell can be challenging, given the wide variety of options available. Here are some factors to consider when choosing which plastic models to resell:
Popularity and Demand
Research the most popular plastic model kits among hobbyists. Manufacturers like Tamiya, Eduard-Models, Trumpeter, AMT, Revell, Atlantis, and Polar Lights are well-known for producing high-quality plastic models across various categories. Keep an eye on trends and in-demand products to identify which models are likely to be sought-after by buyers.
Variety of Options
Offer a diverse range of plastic models to cater to different interests. Plastic models come in various types, including cars, trucks, vehicles, airplanes, helicopters, ships, tanks, military vehicles, science fiction themes, and figure models. By providing a wide selection, you can attract a broader range of customers.
Skill Level and Complexity
Consider the skill level required for each model. Snap-together kits are suitable for beginners and can be a good starting point for those new to the hobby. More complex kits with a higher part count and advanced assembly techniques will appeal to experienced model builders. Ensure that you provide options for different skill levels to cater to a diverse range of customers.
Scale and Detail
Pay attention to the scale of the models, as this is an important factor for hobbyists. Models with finer details and higher accuracy in replicating real-life or fictional items tend to be more popular. Look for models with intricate details, as these often indicate higher quality and can be more desirable for collectors.
Manufacturer Reputation and Quality
Choose manufacturers known for their quality and accuracy. Tamiya, for instance, is renowned for delivering unmatched accuracy and fine details in their kits. Quality plays a crucial role in the satisfaction of your customers, so selecting reputable brands can enhance your reputation as a reseller.
Accessories and Customization
Offer accessories and customization options alongside the plastic models. Accessories contribute to the realism and overall quality of the finished model, allowing buyers to personalize their creations. This can be a valuable add-on service and a way to differentiate your offerings.
Shipping and Packaging Considerations
When reselling plastic models, consider the shipping and packaging process. Choose models that are easy to package and transport, minimizing the risk of breakage during transit. Using new boxes, as suggested by Jon Bius, can significantly reduce the chances of damage and enhance the overall customer experience.
By considering these factors, you can make informed decisions about which plastic models to resell, catering to the interests and skill levels of your target customers while also ensuring a positive and enjoyable buying experience.
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Research the market landscape
To become a plastic model reseller, it is important to research the market landscape to understand the industry, identify trends, and make informed decisions. Here is a guide to help you get started:
Understanding the Plastic Model Industry:
The plastic model industry involves manufacturing and selling kits that allow consumers to build scale models of various subjects. These kits typically consist of unassembled plastic parts that can be snapped together or assembled using glue and paint. The level of difficulty varies, with snap-together kits being beginner-friendly and glue-together kits offering a greater challenge.
Market Size and Growth:
Research the market size and growth trends for plastic models. This includes analyzing data on the global plastic model market's revenue, estimated size, and expected growth rate. Understanding the market size can help you gauge the potential demand and sales opportunities.
Identifying Key Manufacturers and Brands:
Identify the key manufacturers and brands in the plastic model industry. Popular manufacturers include Eduard-Models, Tamiya, Trumpeter, AMT, Revell, Moebius Models, Atlantis Models, Polar Lights, and MPC. Each brand may have its own unique selling points, target audience, and market positioning. Understanding the brand reputation and customer perception can help you choose which brands to resell.
Product Categories and Diversity:
Explore the different product categories within the plastic model industry. Plastic models cover a wide range of subjects, including military vehicles (tanks, aircraft, ships), science fiction themes (Star Wars, Star Trek), cars and trucks, helicopters, boats, and figure models. Understanding the diverse product categories will help you cater to different customer interests.
Customer Demographics and Preferences:
Analyze the customer demographics and preferences within the plastic model market. Understand the age groups, genders, and geographic locations of your target customers. For example, consider whether you want to focus on beginner modelers, children, or more experienced adults. By understanding customer preferences, you can tailor your product offerings and marketing strategies accordingly.
Distribution Channels and Sales Strategies:
Research the typical distribution channels and sales strategies used by plastic model resellers. This includes understanding the role of online marketplaces and hobby shops in reaching your target customers. Additionally, explore the pricing strategies, promotional activities, and customer support approaches used by successful resellers.
By thoroughly researching the market landscape, you can gain valuable insights into the plastic model industry, identify trends, and make informed decisions about your reseller business. This knowledge will help you choose the right products, brands, and sales channels to cater to your target customers effectively.
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Negotiate with vendors
Negotiating with vendors is an important aspect of becoming a reseller of plastic models. Here are some detailed tips to help you navigate this process effectively:
Understand the Market and Vendor Dynamics
Ground yourself with market knowledge by researching what competing vendors charge and what similar businesses pay for comparable services. This knowledge will empower you to negotiate with confidence and increase your chances of securing favourable terms. Understanding the dynamics between vendors and their customers is crucial. Vendors often find it cheaper to retain existing customers than to acquire new ones. This insight can be leveraged in your negotiations, as they may be more willing to negotiate on prices to maintain your business.
Build Relationships and Communicate Respectfully
Establishing trust and credibility with vendors is essential for fostering long-term partnerships and obtaining favourable rates. Whenever possible, opt for in-person conversations or dedicated points of contact to build familiarity and mutual understanding. Respect their time by responding to communications promptly and choosing appropriate times to engage. When issues arise, give them your full attention and work collaboratively to resolve them, strengthening your relationship.
Demonstrate Value and Highlight Mutual Benefits
Vendors aim to maximise their sales and representation. Showcase how partnering with you can help them achieve these goals. Highlight your ability to reach key demographics, the expertise of your sales team, and any innovative ways you can promote their products within your operations. Vendors will be more inclined to negotiate if they foresee a mutually beneficial relationship.
Prepare and Be Open to Compromise
Before entering negotiations, prepare a clear checklist of your expectations, needs, and wants from the vendor. Be transparent about your requirements and open to compromise, as negotiations are a two-way street. Extending the contract beyond your initial plans to secure your desired terms is a common strategy. Remember that negotiations are an ongoing process, and you may need to be adaptable to reach a "win-win" outcome over time.
Leverage Competition
Competition is a powerful tool in driving down pricing and enhancing customer service. Obtain multiple offers from potential vendors and use these to negotiate. However, be mindful that vendors may not always be open to negotiation, especially if they rely on mass emails about prices or services. Seek out vendors who demonstrate a more personalised approach to communication, as they are more likely to be receptive to negotiating.
By following these strategies, you can effectively negotiate with vendors as you embark on your journey to becoming a plastic model reseller.
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Prepare to assemble and stock inventory
To prepare to assemble and stock inventory as a plastic model reseller, there are several key considerations and steps to follow.
Firstly, understand the different types of plastic models available and decide on the specific products you want to resell. Plastic models come in various forms, including military vehicles, aircraft, ships, tanks, science fiction themes, cars, trucks, and figure models. Determine which types of models are most relevant to your target market and fit their wants and needs. This could include the latest releases, classic models, or a mix of both.
Next, source your stock from reliable suppliers. Resellers typically source inventory from wholesalers, liquidators, second-hand stores, local estate sales, and even individual consumers. Evaluate the quality and pricing of the products to ensure they meet your standards and profit margins.
Now, let's discuss inventory management, which is a critical component of your business. You can implement a bins system with SKU (Stock-Keeping Unit) numbers to efficiently organise and track your inventory. This system involves using totes, recyclable inventory bags of different sizes, and SKU number stickers. Assigning SKU numbers to each unique product will enable easy checks, counts, and updates. Alternatively, you can use clothing hanging racks or shelving units, organised by type, size, or colour, depending on the nature of your products.
Additionally, consider the physical storage space for your inventory. Efficiently managing your physical inventory storage is essential for easy access and retrieval. Ensure you have sufficient space to accommodate your stock, with proper shelving, containers, or bins to keep your products organised and protected.
Lastly, for tax purposes, maintain accurate records of your inventory's value. This may involve reseller bookkeeping or utilising inventory management applications to simplify the process. Real-time tracking and automated processes will help minimise errors and save time.
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Frequently asked questions
A reseller is a business or business owner that buys products from a manufacturer, vendor, or wholesaler at a lower cost and sells them at a higher cost.
You need to find the right product that you feel motivated and emotionally invested in. You also need to research and understand the market landscape, including demand, competition, and price points.
Plastic models come in many shapes and sizes. Some examples include airplanes, helicopters, vehicles, boats, and figures. There are also snap-together kits and glue-together kits.
The resale business model offers a lot of opportunities and flexibility. You can choose to focus exclusively on reselling or supplement your existing product and revenue streams with resale goods.
Some popular manufacturers of plastic models include Eduard-Models, Tamiya, Trumpeter, AMT, Revell, Atlantis Models, and Polar Lights.
