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LED Group Pre Buy Program from Creative Displays


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Joseph Ayo wrote:

When you find a way for each of us to buy direct from China at the FOB Yantian Net price and not have to buy 140 cases each and cut out Paul... let us know.

Yep I was going to ask the question what about freight in. Plus thecustoms charges

which are substantial for an order is this size.

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Joseph Ayo wrote:

What should it matter... These prices of pauls are the lowest you will find short of buying 150 cases of what you want direct from China. OK he is marking up things 10 to 25%, the rest of the industry is marking LED lights up 100 to 300%. Take your pick.

I think the problem that J.D. is having is that the mark-up is not 10-25%.... the number is much higher if the number in column F is cost. I don't know business models, so the mark-up is probably typical. Either way, it is still a good deal to me.

-Louie in Melbourne

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FOBYantian means"Freight On Board", which is the shipping fee Paul has to pay from the port of Yantian, China where the lights are shipped in cargo containers to the U.S. on giant cargo ships. Usually this is paid in U.S. Dollars to the company.

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nutz4lights wrote:

Joseph Ayo wrote:

I think the problem that J.D. is having is that the mark-up is not 10-25%.... the number is much higher if the number in column F is cost. I don't know business models, so the mark-up is probably typical. Either way, it is still a good deal to me.

-Louie in Melbourne

Sorry guys. I haven't had, nor have aproblem. I was just curious and asked a simple question...

J.D.

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wirekat wrote:

ChuckHutchings wrote:

Maybe Paul should get little dogs so he doesn't have to rent so much dog food!

Not to mention the wood spindels on the deck that have been chewed up or the sheet rock in the dog room that has been chewed on or the buttons on the intercom that have been chewed off. Anybody want a couple of puppies?

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paul sessel wrote:

wirekat wrote:

Not to mention the wood spindels on the deck that have been chewed up or the sheet rock in the dog room that has been chewed on or the buttons on the intercom that have been chewed off. Anybody want a couple of puppies?

Just don't let them develope a taste for shoes! We had a dog that would have

brought Emilda to tears!

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J.D. wrote:

nutz4lights wrote:

Hi Louie,

I fully expect him to him to make a profit. I was just curious if this column reflected his costs.Every little bit of infohelpsdecide if a pendingtransaction is worth the price (e.g. similar to knowinghow muchthe dealer paid for the new car underconsideration).In this case, I'm looking at $2401.11 in LED lights. If you are correct, he's making $840.46 justoff myorder (basicallya 35% orderhead charge per set). I understandits a lotof work organizing and placingthe initial orderandsplittingup/reshipping everythingonce itarrives. But I also have to add in the cost of shippingwhichat 15% (the average that most people suggest from last year), comes to another $360.16.That's $1200.62he's making to breakdown and ship my$2400.11 order.

Some would say that's an appropriate profit margin for a businessthat buys and stocks productsyear round; others might think that's too much for placing a special order that incurno storage costs. I'm notsaying either way. Just wondering out loud since you asked.

Finally, I didn'teven realize a column was hidden. I copied and pasted the rowsI wanted to buy into another spreadsheet and it popped up on its own... :)

J.D.

J.D.

I think you're missing the point - you should be more concerned about your savings rather than what I'm making! You guys are in for a shock this year when you see what the cost of Christmas is going to be this year.I'm willing to bet my house that my prices, for a full wave LED light string are cheaper than anyone. Also, as for your math, I'm not making a cent on the shipping. I charge you what UPS charges me to ship your product.

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UPS is a real bear on shipping too!

Paul, have you thgouht about using FEDEX Home delivery to us? I find that anytime I ship anything over 3 pounds, I get the lowest quotes from Fedex Ground, and it's significantly less. For example, the other day a lady won an item from me on eBAy and the post office wanted $19, and Fedex was only $14.

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Aaaaaaaaaaaaaaahhhhhhhhhhhhhhh!!!!!!!!!!!!!!

NOT FEDEX GROUND!!!!!!!!!!!!!!!!!!!!!!!!!

They're the nitwits that shipped my DarrylB MegaTree last year from HIM to CALIFORNIA and then back ME in Miami!

(Although, I must admit that my new tree is moving along a more orderly route. It shipped Wednesday, is in Orlando already and should be delivered Monday.

(Kenny Greer will probably have a kitten should it not appear on time. Hmm - maybe Paul's puppies will like kittens. ;))

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Well, all the major carriers at one time or another have lost or damaged a box, it can happen to anyone at any time. But it's pretty hard to damage a bunch of lights packed into cases. And their tracking is awesome, so you can tell if it's going to the wrong place and alert them. And your darryTree did arrive in one piece right?

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I was with UPS for over 10 years when Fed Ex came to me to take my business in '06. They are the worst for shipments of numerous packages. I would send (let's say) 10 boxes to someone and they would be delivered over 3 - 5 days to the individual. After a year with Fed Ex, UPS last year came back with substantial discounts to get my business back. They really are much better overall.

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paul sessel wrote:

I was with UPS for over 10 years when Fed Ex came to me to take my business in '06. They are the worst for shipments of numerous packages. I would send (let's say) 10 boxes to someone and they would be delivered over 3 - 5 days to the individual. After a year with Fed Ex, UPS last year came back with substantial discounts to get my business back. They really are much better overall.

I've had the same experience, received a several box shipment that should have come at one time yet it arrived over the course of more than a week. I know my UPS driver and he goes out of his way to be extra helpful especially on large shipments.

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jeffostroff wrote:

Well, all the major carriers at one time or another have lost or damaged a box, it can happen to anyone at any time. But it's pretty hard to damage a bunch of lights packed into cases. And their tracking is awesome, so you can tell if it's going to the wrong place and alert them. And your darryTree did arrive in one piece right?

Jeff,

I was just kidding. I realize that stuff happens. :P

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jeffostroff wrote:

FOBYantian means"Freight On Board", which is the shipping fee Paul has to pay from the port of Yantian, China where the lights are shipped in cargo containers to the U.S. on giant cargo ships. Usually this is paid in U.S. Dollars to the company.

Jeff, I think your post needs some clarification.

FOB, in international commerce terms, is actually free on board.

http://en.wikipedia.org/wiki/Free_On_Board#Incoterm

The FOB Yantian price is whatthe manufacturer or distributor charges to make, box, and deliver to the ship in Yantian. This would include profit for the manufacturer/distributor. I'm guessing that is the price that's in column F, not shipping fees.

Once loadedon the ship inYantian, legal ownership is transferred to Creative Displays. At that point, all shipping costs (shipping, unloading, trucking to KS), insurance, customs, risks, et al are the responsiblity of CD.

So, CD price - (FOB price PLUS shipping/handling costs) = smaller profit than imagined.

Last year I paid $460 to ship 28 packages from Kansas to San Diego. Sounds inflated doesn't it? But shipping weight was 536 pounds!!!:shock: (that's including 3k feet SPT wire, which is heavy) So $0.86/pound is reasonable, and I believe Pauls statement that he only charges actually shipping costs.

BTW, Yippee!! I finally used something from my business law class!!:laughing:

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ChuckHutchings wrote:

jeffostroff wrote:

Yeah. I hate the Philips brand. I refuse to buy ANYTHING they make just because their light bulbs are so horrible.

(And you know it's bad when my father-in-law notices that a particular thing s***s. ;) )

I'm personally through with Philips after buying one of their DVD recorders. Their customer service was horrible and the software was excessively complicated even for doing simple things like watching a DVD or making a simple recording.

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wirekat wrote:

Yep I was going to ask the question what about freight in. Plus thecustoms charges

which are substantial for an order is this size.

Don't forget about all of the bribes to the customs officials and the cost of the numerous lead warning labels and the cost to clean up the fuel oil after the COSCO ships carrying the lights smacks another bridge.

It all adds up.

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jrbryant wrote:

A couple different topics (questions)

Does anyone know if the M5's are long enough to use with Coro? I'm wondering if they are long enough to poke through... be seen and still hold well in the Coroplast?

Is anyone looking to split an order? I know that purchasing 12 strings of one color or another might be too many for some. I'm not exacly sure how many I'll need of each color... but I might be looking to split some colors with someone.

I'll either be looking to purchase M5 or C6's. PM me if interested... maybe we can work something out!

I'd like to split an order on some yellow M5s.

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I got my order placed yesterday. I am going to replace all of my blue and green incandescent net lights (36 each) as well as a bunch of my green mini's. (24 sets of 100's). I replaced the blue mini's last season. Also, bought another 2000 feet of SPT2 wire, 200 female and 100 male SPT2 plugs. All I need now is the LOR sale and I'll be ready to roll for 2008.

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Managed to catch Paul on first try today. Placed my order, disappointed that I couldn't get as much as I wanted due to the higher cost this year. Oh well, next year expand both controller count as well as number of strings. I figure I will get a least as many strings next year as this, with 12K more lights added this year.

Thanks Paul!!!

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