Ep. 34 Top 12 Ways to Reduce Your Sourcing Costs with Norm "The Beard Guy" Farrar

Welcome back to the Sprint to Profit Podcast for Amazon Sellers. In this episode, Kirsty and Isaac talk with guest Norm “The Beard Guy” Farrar about 10 different ways you can reduce your sourcing costs.

In this episode, we are going to be speaking with Norm Farrar “AKA the beard guy” who has had ooodles of experience in marketing in the 80’s and ecommerce in the 90’s - so he’s a veteran! He’s an active Amazon Seller, the founder of prREACH, founder of AMZ.club, AMZ and Beyond, the Chad Agency, a partner in Sponsored Profit, and also the founder of Honu Worldwide which are companies that focus either on Amazon training and solutions or building your brand and reputation.

If you liked what you heard today on the show, please make sure to hit the subscribe button so you can get updated when we post new episodes. Please share this episode with others who might get value out of it as well. We wish you the best for you and your business.

To get some FREE training on what it takes to have a successful business to fuel your lifestyle, head to www.goteamreal.com to download our FREE training today. Also head to www.goteamreal.com/income to download your free INCOME calculator.

Talking Points:

• 00:20 - Hello and Welcome
• 03:34 - Norm “The Beard Guy” Farrar’s story
• 09:15 - Introduction to rules and quick overview
• 12:03 - Rule #1: Avoid using large sourcing platforms
• 21:20 - Rule #2: Use a currency exchange company
• 29:05 - Rule #3: Know when to negotiate
• 42:10 - Rule #4: ExWorks or EXW for shipping
• 44:10 - Rule #5: Mix up your shipping
• 48:05 - Rule #6: Don’t get your manufacturer to ship it DDP
• 51:50 - Rule #7: FInd someone to consolidate samples
• 53:50 - Rule #8: Use the correct HTS codes
• 59:00 - Rule #9: Look to source somewhere where there are no Trump taxes
• 1:00:00 - Rule #10: Get inspections done in China
• 1:04:15 - Bonus Rules: Pro-forma & Chinese trademarks
• 1:11:35 - Summary and what to do next

Resources/Links:

Email: [email protected] 

HonuWorldWide: https://honuworldwide.com/

HTS codes: https://hts.usitc.gov/

Our Website: https://www.goteamreal.com/

Real Amazon Seller Facebook Group: https://www.facebook.com/groups/AmazonSellerRoundTable/

Quotes:

09:22 - “One of the things that we all have to come to grips with is that we’re all not experts and we have to look at our companies and see where we can save money” - Norm Farrar

21:27 - “When you pay a supplier in US dollars, a supplier makes more money off of this than selling the product.” - Norm Farrar

27:23 - “It’s just perception. A lot of people don’t--a lot of people are nervous about putting their price up because they want to move volume, but that’s the wrong mindset.” - Norm Farrar

1:07:24 - “The production must match the pre-production sample. Because there’s this magical formula in China that around your fourth or fifth order, your production quality starts to decline” - Norm Farrar