posted on September 29, 2000 06:52:07 AM
I have been following Persian rugs on ebay for a while. I have noticed that almost all the listings are from the same rather small group of dealers. They hardly ever sell anything and in many cases there few bids. Furthermore, they seem to keep re-listing the same rugs over and over again with little sucess. No one seems to be reaching the reserve amounts. What is going on? Aren't they losing all those listing fee? How can they keep doing this without losing money?
posted on September 29, 2000 07:00:34 AM
Maybe they make a huge profit that absorbs the listing fees. It could be if they sell a rug every once in a while, the profit makes it all worth while. In the meantime, they might be getting lots of exposure for their website. Do they post a website address for more rugs?
posted on September 29, 2000 07:04:42 AM
Perhaps they have a large inventory of the same rugs, and are simply cutting under the table deals with the high bidders?
posted on September 29, 2000 07:15:07 AM
I have e-mailed several of them for their resrve prices and most are way below what stores charge for these rugs. In some cases about 1/4 the store price. What concerns me is that perhaps these are Indian or Chinese copies or they they are rejects. While they offer returns if not satified, the two way shipping is substantial. Most store usual sell items like this at 100% markup so howcan they sell them so cheap. It appears that less than 5% actually get sold.
posted on September 29, 2000 07:27:51 AM
"It appears that less than 5% actually get sold."
Maybe that's why -- bidders are suspicious of them, just like you. I haven't looked on ebay to see what you're talking about, yet, but they sound like "relatives" of the folks here who pull up in vans and unload a bunch of rugs which they hang from the fence around the vacant lot... From the street, driving by, they look like nice rugs, but I have never stopped or bought, because I don't see how a rug at that price could possibly be of good quality... and if it is, then it must have been stolen goods...
Violetta
(Not known by this nickname anywhere but here.)
posted on September 29, 2000 07:51:26 AM
The question is if they aren't selling, how can they make money and pay the fees? How many times are you allowed to re-list? I also hate to be so suspecious that I end up paying 3 or 4 times the price in a store. Can't figure this out.
posted on September 29, 2000 08:05:54 AM
As far as I know, you can relist forever -- you have to pay the listing fee each time. If an auction doesn't sell, you may relist and get your listing fee refunded *IF* it sells the second time. No additional free relists are offered on that auction (on ebay).
So either they are making enough money elsewhere to cover their fees, or... they are going into debt.
Violetta
(Not known by this nickname anywhere but here.)
(Replaced "item" with "auction," which I think is more accurate.)
[ edited by violetta on Sep 29, 2000 08:08 AM ]
posted on September 29, 2000 08:07:28 AM
Listing fees are not that expensive on Ebay compared to brick and mortar establishments. I can't say if these are quality or not.
They could be items that are purchased in a lot from inventory liquidations. They could be seconds. They could be stolen. They could be cheap imitations. There is no way to know unless you can get your hands on them.
Do they have websites listed in their ads?
You could ask where they are located so that if it is close enough, you can visit and check them out--just like people looking at cars or send an expert in the area over to look and give you an opinion on them before bidding. If they are on the up and up, they should be willing to let someone look at them.
If you purchase, use a cc or escrow to be sure that you can chargeback or return.
You can purchase it and then take it to a reputable dealer to have it "appraised for insurance value" which will tell you if it is good quality or not if you are not sure of your expertise.
Frankly, if they are selling for 25% of retail and look nice and I wasn't interested in resale or investment value, but just a good looking rug for a certain decorating "look", I wouldn't be all that worried depending on the cost--but that is just me.
posted on September 29, 2000 08:21:53 AM
Okay, I took a look at these rugs and one of the sellers is very thorough, going so far as to show the back knotting with a ruler so that you can judge the number of knots per inch and closeness.
I know that pattern plays into the value as well, so maybe copying the ad on your printer and asking an expert in your area would be of value.
They give phone numbers, so you can call them about the rugs. Just call and ask how they can sell at these prices. See what their answer is and check their guarantees.
Also, check to see if they include shipping if you find that you need to return the item.
Write to some of the people who have won rugs from these people and ask what the quality is like and if they were happy with the item and had it appraised or valued since receiving it.
From what I understand, this is a fairly precise and volatile market and the right person just has to come along for a certain rug.
I have seen fine carpet and rug stores in this area that can have the same antique rugs and carpets in their shop for YEARS waiting for the right buyer which increases their overhead tremendously.
Again, the cost of the Ebay listings are not that much compared to ads in magazines, TV, radio, floorspace, etc. and so listing for a while is not a huge part of their costs.
I haven't looked on ebay to see what you're talking about, yet, but they sound like "relatives" of the folks here who pull up in vans and unload a bunch of rugs which they hang from the fence around the vacant lot... From the street, driving by, they look like nice rugs, but I have never stopped or bought, because I don't see how a rug at that price could possibly be of good quality... and if it is, then it must have been stolen goods...