Question - International dealer

Discussion in 'Growing and Managing a Business' started by murpcam, Oct 29, 2012.

  1. murpcam

    murpcam
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    Hello,

    I came here because I have a few questions that no one in my life can answer.

    I've done some work for a webmaster living in the Dominican Republic. I live in the Pacific Northwest. He has always paid me on time and generously.
    He recently asked me if I would be interested in a business option - he wants to sell steering wheels in the DR, as there is apparently demand but no supply. He says that these businesses don't deal with the DR, and therefore needs someone in the US to act as a buyer and ship them. He said he will send me all the money, so I'm not fronting anything of my own. I would keep a small cut. I normally wouldn't consider something like this, but I'm in a financial bind. I don't suspect him of bad intentions (if anything he is just stupid).

    What do you think?
    Are there any obvious risks?

    Thank you
     
  2. Scotian

    Scotian
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    The key is does he have a legitimate supplier, and how are they going to be shipped. Shipping and Customs are always the biggest problems does he have all this taken care of ? Financially it would appear that you have nothing to lose, but having dealt with shipping items overseas I found the biggest problem is the necessary form filling for customs and the cost of shipping.
     
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  3. murpcam

    murpcam
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    I don't think he's thought any of it through. I'm leaving it up to him.

    I'm afraid of winding up with some unforeseen charge or tax a year later - you can imagine.
     
  4. Fergal

    Fergal
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    I've heard of a scam whereby a person is sent a bank draft from abroad. The bank draft is for quite a lot more than the payment originally agreed and the recipient is asked to send back the overpayment. The recipient then sends back the overpayment only to find out a few days later that the bank draft is a fake and they are down the extra money / overpayment they sent back. I'm not suggesting that something like that is happening in this instance, but it is something to be wary of.

    Perhaps you can speak to a local accountant or tax advisor to find out the full financial implications of what you are considering doing. You might also try contacting your local IRS office.
     
  5. Mark T

    Mark T
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    Have you met with him personally? I would recommend you to both talk about it personally - yes personally.
    Talk about stuffs that is needed to run a business just like other businesses out there.

    1. Any licenses or certifications needed?
    2. Legal documents to pass?
    3. A business plan for the idea?
    4. How will the shipping process will go through?
    5. Whom shall ship the products?
    6. Any other business requirements you will need?

    And so on and so forth - which can only be discussed clearly when you meet in person. It is not just about making sure, but also creating a clear conversation between you and him. Clearing up all your plans about the business is the first step for it.
     

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