How to import fireworks from China. 
In the pyrotechnics industry, many business owners strive to import fireworks direct from China. Let’s discuss the pluses and minuses of direct import. Many firework shops are open only during peak sales season, in the USA this can be days before and after the 4th of July, In the United Kingdom it is centered around Guy Fawkes day or Bonfire Night in November. Much of the world uses tons of fireworks during annual New Years Eve celebrations.
Regardless of the country or season, these smaller shops mostly buy their fireworks domestically, or from a large wholesaler or distributor who is already direct importing from China. Of course, buying domestically comes with a mark-up versus direct importing, so how do you know when you are “big enough” to take the leap so to speak, and direct import for yourself? You must first analize the costs, and risks involved, what seems like a great full out discount by NOT paying a distributors mark up might have some hidden snags you had not foreseen.
Importing direct, generally is for large companies moving tons of products monthly. The larger direct fireworks importers are bringing in anywhere from 100 to 1,000+ containers annually! The rest of the market between these giants, and the domestic buyers consists of companies importing as few as 5 containers annually. We should mention, there are display companies importing 1.3g fireworks exclusively for displays bringing in only 1-2 containers per year, not for resale, so this article mainly addresses consumer fireworks being retailed.
How much can you save importing direct versus buying wholesale domestic? Importing, much like buying wholesale is a volume game, to get the best prices you have to buy a LOT. The best wholesale prices are lists for buyers that spend at least 100k and more. Likewise, direct importers who buy 50 or more containers from a single supplier can expect discounts over those bringing in far less product. The percent discounts on these lower cost lists might not be as great a savings as you would think, as margins are fading fast in fireworks just like many other industries.
So how do you know when your big enough to start importing? Dominator Fireworks associates recommend that your moving at a minimum 5,000 cartons per year, and even at this level keep the amount of product imported to 20% or less. The average 40′ HQ (high cube) ocean container holds on average 1,000 cartons of fireworks. This leaves 4,000 cartons of fireworks to purchase domestically, for several reasons. One is, you must meet MOQ (minimum order quantities) when direct importing. Some of the larger importers mentioned earlier might buy 2,000 cases of a single item. If you are importing one container only, you must buy a minimum number of cartons of EACH item, usually 20 or more cases. This means that 1,000 / 20 = 50. So 50 is the number of different items you might get on a small order container from China. 50 items is about 20% of what most stores and stands carry.
Next to discuss is risk, and costs involved importing direct. Most wholesalers will offer a credit program to domestic buyers. This is not likely buying direct from China, and the average cost of the products on a container are around $25,0000. Add to that, the 8-10k freight charge that must be paid before receiving your goods and the up front investment per container becomes substantial for many. Another factor to consider is government. The government in some countries has been known to stop entire containers at the ports and hold them for up to months for various inspections. These inspections can be completely random.
If the above has NOT scared you away from direct importing, give us at Dominator Fireworks a call or email and we will be happy to discuss your personal situation further and help you decide if we would be a good partner in helping you take the next step in your growing business.