U learn from where? Who Ur guru? My GROSS PROFIT only 27%-30% & not NET PROFIT, it work very well. U got 50% net profit, what I can said is Wooowww... as long U can make a profit (net) is good already, doesn't matter 10%, 20% or 30%... If refer to S/B, profit not belong to U.. it belong to the company, where it increased Ur Com. share value...

Selling low quality product like Car amplifier made in China, Yes it can make even 200% net profit cause cost per unit just a few ringgit & selling price at a few hundred ringgit.... like "BROTHERS" products

Thank you for your interest. Actually now we're still sorting out packaging details and operating in December 2011. Will let you know via PM once things are sorted out. 

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Added on November 16, 2011, 11:48 am
Thank you for some insight about marketing our products. 
Will contact some local distributors.

I think you have some confusion regarding gross profit and nett profit.

Gross profit = Sales - Cost of sales (Direct product cost + Packaging)

Nett profit = Sales - Cost of sales - Fixed overhead expenses (Salary, Rental, Utilities and etc) - Loan Interest - Tax - Etc

In F&B, I think a more realistic nett profit lies around 5-20% of your sales.

I am from F&B industry but more specialized in restaurant kind of business, selling foods and drinks in chinese coffee shop. I don't know if this is applicable but there are some goods that you can sell at more than 50% margin and some less than 50% margin. 

last took about about RM1500 form walls.sales was 3000. estimated to hit 4000 this month.only sell from 3pm-12am. sometimes only sell 6-12am. planning to do something else in the daytime. cant tahan the heat in daytime. =(

for the moment. my earning can coup my expenses. i got the whole daytime doing something else. planning to sells toys. need to survey market first.

i started off in december 2010, importing gummibears (HARIBO) from Germany. rugi teruk. then i switch to local sweets. sales was very lilttle Rm10-30/night. i do that for almost a year, then i started with ice cream in nov 2011. after 1 month. i have decided to do full time. if u calculate by everything. i took 1 year to test market. if u calculate by business type, can say almost immediately. average ice cream sales per day is 100-200, 100% profit from cost, i just need rm3000 sales a month.then i will profit 1500. 1500 is enough to cover all my expenses now.

btw, i just masuk chinese lego today. 100% same like lego.

http://www.lhtoys.com/en/index.asp

i started off in december 2010, importing gummibears (HARIBO) from Germany. rugi teruk. then i switch to local sweets. sales was very lilttle Rm10-30/night. i do that for almost a year, then i started with ice cream in nov 2011. after 1 month. i have decided to do full time. if u calculate by everything. i took 1 year to test market. if u calculate by business type, can say almost immediately. average ice cream sales per day is 100-200, 100% profit from cost, i just need rm3000 sales a month.then i will profit 1500. 1500 is enough to cover all my expenses now.

btw, i just masuk chinese lego today. 100% same like lego.

http://www.lhtoys.com/en/index.asp

Let me share my opinion on Hawker business to those who interested to open stall.

Basically hawker business is a very good way to start if you dont have much $$$ to do the business you want to start.

My family are into Hawker business around 10year++ give or take.
Chicken Rice business is the best in term of profit margin, but it required alot of work such as making the chili, soup, etc. My parent stall monthly net profit is around 8K++ and thats only a normal laku, not like famous stall business.

Mean while got competitor who open many years b4 us are driving Mercedes   and stay at Bungalow, he's selling around 60-80pcs of chicken everyday not include other stuff such Duck, Roaster Pxrk, etc.
I m happy to share if anyone really want to do this business can ask for more info.

i worked for a trading company dealing in health scales. very niche market. wan masuk government hospital need to be bumi contractor. so only supply to local private hospital. lotsa problems...sikit sikit call u go.

u can try to approach those ppl who help ppl to set - up clinics. KL market is very competitive. alot of importer play sendiri. penang market mostly lone ranger who spoils market value.

is this a local factory or overseas?

I was doing something similar.

1) 30% profit margin seems okay. But at the end of the day, is that amount justifiable for the effort that you have to pour in? Only you can answer that.

2) In my case, the distributor has 2 different pricing. Market price & reseller who purchased in bulk price. But yes, at the end of the day, the factory is still your competitor. But like kurty said, you can compete via value added service instead of price. Give your client a reason to buy from you instead of the factory, the easiest example is delivery service, credit terms etc. 

3) Only the value added services that makes you special & important can truly stop your client from going direct to the factory. But my distributor told me something that I can't forget; "There's no difference to me whether I sell to you or to your clients, my total revenue will be the same because they come to me to buy at the price that I sell to you. So I rather protect you (resellers) & help you grow because your success is my success too."

4) The factory is running a business too. They can sell to everyone if they want to. But if they are greedy & short sighted, they will cannibalize their agents by selling cheaper. So avoid being agents for this type of factories. A good factory is the one that has a different price for resellers/agents.