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Dog chews from paws are going to be manufactured and packaged in Nepal. We are going to export our product directly through local distributors. The internet is another way we are going to introduce and sell our products in Hungary.
Ecommerce platforms will be handled by giants like Amazon and Alibaba. Our products will be sent through shipping companies through air or waterways to Germany. From there cargo trains to Hungary are the cheapest way for our product to reach Hungary.
Rent charge for an office space in Hungary is going to be expensive for us as the average rent cost in Hungary is 243% higher than in Nepal. We are going to have a warehouse with a small office in the outskirts of Budapest to reduce cost. As Hungarians prefer face to face business deals having an office there will be very profitable for us. This will allow us even to socialize with the businesses beforehand. The online distributing is going to be easier as the online platforms can easily pickup our product from our warehouse rather than us shipping it after odder. Since our plan is also to sell online, goods will also be delivered on time since we are nearer to the market compared to sending goods all the way from Kathmandu. We can also understand the locals better this way and can sell our products accordingly.
We will need to allocate cost for a local delivery truck to transport goods through local distributors. We will need a few employees including a supervisor to look after everything. We will need to higher some local people as well as send expatriates from Nepal to initially build market for our product. Other expenses include: telephone, electricity, water, furniture’s and computers. We are going to advertise our product in the International pet fares and competitions which will cost us as we need to open a stall there.
Firstly online sales that have been boosting recently especially on dog food in Hungary is going to be good source of income. Online platforms will allow us to have a very wide reach with very limited costs. The delivery and transportation costs of goods ordered in online platforms will be covered by them and will save us more money.
Another major source of income will obviously be the distribution we will be doing to retailers in Hungary. This will be a more stable source as we will get paid for putting our product on their selves and selling it will be their job.
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