smartcom
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posted on July 10, 2001 08:15:38 AM
I was wondering if there are any power sellers out there who sell there items at below cost?
I mean the profit margin on ebay is so slim, I mean how can some power sellers like JoeOutlet sell there items so cheap? Don't they have wages to pay? and rent...etc.
How is business for powersellers on ebay.
Cheers
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hwahwahwahwa
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posted on July 10, 2001 08:29:59 AM
who is joeOutlet and what does he sell and how cheap is cheap,makes one want to check out his items and may be even bid on some??
yes,it is possible to lose money on ebay,whether powersellers or regular sellers.
if a seller bulkloads resin cast items such as chinese limoge style boxes which cost around 3.00- 500 wholesale,and list them at starting bid of 9.95,to the tune of 5000 items per month,figure the listing fee of 1500 a month which is non refundable.
given the condition of the market these days,may be 200-400 items receive bids of 9.95,you figure out the math,after deducting cost of goods,listing and final value fee ,how much is this dealer making or not making.
some powersellers lost their powerseller status because they no longer bulkload these items.
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kyms
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posted on July 10, 2001 08:30:29 AM
I am not losing money... I buy books, records and games for 10 cents to $3.00, always start the bidding at $5.99-9.95, always make a huge profit. A few good sales make up for all the stinkers (and then some!) Volume is the key!
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Empires
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posted on July 10, 2001 08:51:52 AM
Why would Powersellers lose any more or less money than anyone else in the auction business. Don't all sellers have bills like electric etc? Online expenses as well, gas to garage costs?
[ edited by Empires on Jul 10, 2001 08:52 AM ]
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undercovers
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posted on July 10, 2001 08:57:12 AM
aw heck, i just went to look at joeoutlets auctions and there were none.....i wanted to buy some cheap stuff...
as for powersellers selling stuff below cost...i don't know what the fact that people are powersellers or not has anything to do with selling below cost....
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magazine_guy
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posted on July 10, 2001 09:22:58 AM
The secret is volume.
Sure, they lose money on each piece. But they make it up on volume. 
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sosoal
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posted on July 10, 2001 09:23:12 AM
I am selling everything below cost. It is necessary so that I can meet my minimum requirements to sustain my highly valued Power Seller status. I'm thinking of offering my home for a dollar just to keep up.
I fear that if I don't meet my goal each and every month, the eBay swat team will raid my place and lord help me, rip the Power Seller badge off of my shirt. If I get wind of an impending raid, I think I'll jump off a bridge to save myself from the humiliation.
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hwahwahwahwa
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posted on July 10, 2001 10:01:58 AM
magazine guy,
if a powerseller or plain seller sells every item at a loss,selling in volume would make the loss bigger,say lose 1 dollars for 1 item,sell 1000 and lose 1000 dollars.
do you mean list 1000 items and sold some at good profit,some break even and some unsold.
but if a seller sells the same items repetitively,soon every one who wants one has one already,there are fewer and fewer buyers left.
we are seeing this in almost every category-cameras,postcards,dolls,colelctibles,too many supply chasing after fewer demand.
another problem is importer/wholesaler are selling too.
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kiara
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posted on July 10, 2001 10:07:23 AM
It is a terrible feeling for a powerseller to lose their status. When people click into your auction and they don't see the big powerseller button they no longer buy from you. Friends that used to look up to you now snicker behind your back.
It is probably the most humiliating experience an ebay seller will ever have to endure. That is why lots of powersellers are selling below cost. 
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Brooklynguy-07
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posted on July 10, 2001 10:23:57 AM
hwahwa.....Thanks for the lesson in economics but Magazine Guy was joking!!
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gravid
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posted on July 10, 2001 10:33:28 AM
Sure sometimes I sell things for less than cost just like brick and motar stores. If you have leftover items that did not sell at a profit it is still better to get SOMETHING for them than to dumpster them for a pure loss.
Just don't do it TOO often.....
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wbbell
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posted on July 10, 2001 11:27:16 AM
hwahwa don't be silly! Magazineguy was joking, hence the "  "
Anyone, powerseller or not, who sells below cost as a general rule, will clearly not stay in business very long.
I have sold slow moving items at below my cost just to be rid of them and make cash flow and room for more items. But obviously, profit must be made or why do it at all?
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hwahwahwahwa
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posted on July 10, 2001 11:32:15 AM
sell at a loss so we can get the cash to buy some winners.
no one knows i ama a powerseller,that logo gets in the way of pictures and item description.
buti must admit,powersellers is a someone you look up to in your neighborhood,you get the best seat,best barbecue meat,no need to stand in line to use the latrine,mayor kisses your ass,and all that great stuff.
neighbors may even mow your lawn free just to see what you have in your dining room
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twinsoft
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posted on July 10, 2001 12:19:25 PM
Kiara, LOL! Yes, I know the feeling. The hushed whispers at the office superstore. The look of pity in the postal clerk's eyes. Now I'm gonna sing a lonesome song....
"The day that Billy Joe McAllister jumped off the Tallahassee bridge... la la la...."
.
Internet Pioneers
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akamich
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posted on July 10, 2001 02:34:30 PM
Selling at a loss is tried and true merchandising tactic! Who hasn't heard of loss leaders? Once you get them into your auction page, they are in your power. I offer free shipping on purchases of two or more items, the loss leader is the lure. the free shipping greases the slide! Ahhh Powerselling!
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MAH645
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posted on July 10, 2001 08:00:54 PM
When people click to my auctions,they won't see a Powerseller button now or ever.It sure doesn't hurt my sales not having it.I think I would rather have a jackass button than a Powersellers button.It would be a whole lot prettier.There is no way I would give my merchandise away to impress anybody.Who are you going to impress when your sitting in the dark hungry,with Meg pounding at your door wanting her E-Bay fees you haven't paid because you paid it all out on Postage to give away the last of your inventory?
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spittingcamel
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posted on July 10, 2001 08:15:52 PM
hwha it is a very OLD joke.
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commentary
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posted on July 10, 2001 08:21:36 PM
Amazon does it in the real world. They keep growing but have never made money yet. There must be something about substaining losses and increasing volume.
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paislydaisy
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posted on July 10, 2001 08:30:43 PM
On my new items that cost me around $60.00 I start them at $9.99 with no reserve. Usually they go for $75.00+ but once in a while they sell for below cost. When all the totals are counted I make a profit.
Of course buying the widget for $1.00 and selling is for $100.00 is the biggest thrill!
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wranglers
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posted on July 10, 2001 08:49:41 PM
More than likely the items you think they are selling at a loss they are making good profit on. I just found a place that buys closeouts from 3 of the same companies I buy from at wholesale. Lots of the stuff they have are/were some of my best sellers, now I can buy them at 40-50% less than I was paying at wholesale.
So to the guy that has paid wholesale and is trying to clear out the last of his inventory I will may appear to be selling at or just above cost when actually I am at least doubling my money.
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wranglers
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posted on July 10, 2001 08:49:47 PM
double post
[ edited by wranglers on Jul 10, 2001 08:50 PM ]
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