Home – New Forums Starting your journey Advice Needed RE: Importing & Reselling

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  • #990955
    haros
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    My entire career has been spent working for others and now I am looking to do a little something on the side for myself.

    I have stumbled onto a patented device which I believe is not as popular as it should be. I have contacted the overseas inventor and he has given me pricing for bulk quantities. Based on those numbers, there is potential for all stakeholders involved to share profits.

    I asked the inventor to be the sole distributor in Australia and he has indicated that he is happy to enter into a “gentlemen’s agreement” whereby he would give me right of first refusal based on particular opportunities. I plan on reselling this device to the local shops and maybe directly to end consumers as well but before I begin to gauge how interested they are, there are a few issues I need clarified:

    1. I do not yet have the capital to make bulk purchases. Should I try to get a loan or is there a better way to get the goods into Australia?
    2. If this device should fail whilst in operation and cause personal injury or property damage, does liability rest with the inventor, the middleman (me) or the retailer?
    3. Do I need to pay some sort of import tax on the goods?
    4. Is there anything else I need to know?

    As I’ve never done anything like this before, any additional advice is most welcome.

    Thanks in advance.

    #1179347
    bb1
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    I won’t answer your questions, there are far mequalified people here for that. I will go back to a comment prior to that, “Gentlemans agreement”, I see one very big red flag. You are going to import a product based on a Gentlemans agreement, if this gentleman decideds the fllowing week that he gets a better offer from someone else, you are suddenly left with a business, where I assume you have done advertising, setup of website or retail sites, paid insurances (you will need them), and all the other expenses.

    Dont go into it on a Gentlemans agreement, even a 50 page contract can have loop holes, but a gentlemans agreement is one huge espensive loop hole waiting to happen

    #1179348
    Petemac
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    Hi, have to agree regards the gentlemens agreement because as nice as it sounds it is not the way to start a business. To be fair to the inventor you may need to put an agreement together that has targets you need to reach over a 12 month period to keep the exclusive rights to sell in Australia and this way you have the rights and with set targets, he knows you are going to actively work it (even through tough times) and as long as the targets are realistic and are reached then the aggreemnt stays in place.

    When importing goods over $1000 AUS value you will have GST and duties to add to your extra costs. Freighting of goods, marketing, etc will aso need to be taken into account.

    Cheers

    Pete

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