Manufacturing in Zhengzhou, China since 2012

BAIFANGROUP

Model 02 · Stock and sell

Distributor and retail network

Import a mixed container, put a demo unit in the shop and earn the spread between landed cost and dealer price.

Container budgetUSD 75k-105k
Blended margin25-35%
Stock turnsAbout 2 per year

The distributor model is a working-capital business. The product is proven; the risk is dead stock. A mixed container of three models, sold through a price ladder, beats a container of ten models nobody can explain.

Who this suits

Importers with a shop, a warehouse and three to ten dealer relationships.

How the model runs, step by step

  1. 01

    Pick three models, not twelve

    One 100-150 W all-in-one for roads, one flood light for yards, one kit for installers. Every extra model is a spare part, a manual and a training session.

  2. 02

    Land a mixed container

    Mix models and colours inside one container. Ask for the packing list before you ask for the price, and check the carton dimensions against your warehouse.

  3. 03

    Set the price ladder

    Landed cost, distributor price, dealer price, retail price. Publish it to your dealers. A ladder everyone knows is worth more than a discount everyone negotiates.

  4. 04

    Build a demo wall

    One working light and one working purifier, wired to a switch. Buyers who see the light buy the light; catalogues do not close.

  5. 05

    Hold spares and train

    Three percent of the order value in controllers, drivers and battery packs. One training afternoon per dealer, with a sizing sheet they can keep.

One 40HQ container, illustrative

Units landed500 mixed
Landed costUSD 190 per unit = USD 95,000
Distributor priceUSD 265 per unit = USD 132,500
Gross profitUSD 37,500 (28%)
Dealer retailUSD 330-350 per unit
Two turns a yearAbout USD 75,000 gross

Freight, duty and clearing are inside the landed cost. If your bank charges 12% on the letter of credit, the margin is already 24%, not 28%.

Where it goes wrong

RiskWhat to do about it
Dead stockMixed container, three models, and a written exchange policy for slow lines.
Price warTerritory agreement and a model that is not identical to the shop next door.
Warranty claimsExchange the unit, repair at the workshop, and log the serial. Never argue at the counter.

Before you order

  • Landed cost sheet including duty, clearing and finance
  • Published price ladder for dealers
  • Demo unit wired in the shop
  • Three percent spare pool
  • Dealer sizing sheet in the local language
  • Serial log for every unit sold

Questions buyers ask

Answers before you write.

What is the minimum order for a mixed container?

Fifty finished luminaires per model is the production minimum; a mixed container usually carries three models at 150-250 units each.

Do you protect territories?

We do not sell to a second distributor in the same city while the first is meeting its annual volume. That is a commercial agreement, written into the supply contract.

Who pays for the spare parts?

The distributor buys a three percent pool at cost. Units replaced under warranty are credited against the next order, not refunded in cash.

Run the numbers with us.

Send the model, the market and the price you think you can get. We will reply with the landed cost, the margin and the three assumptions that matter most.

Request a quote