posted on September 25, 2001 04:55:51 PM
What is the minimum profit you will accept on your items? Is that what you use as your opening amount? Just curious?
I want at least $5.00. I open with at least that amount built in, sometimes more depending on my research and what the market shows.
posted on September 25, 2001 04:59:58 PM
To me it's more a % thing than a dollar amount. On really small ticket items, I want 200% or more. On larger ticket items, the % is lower, and and really big ticket items, it can be as low as 25 to 30 %.
posted on September 25, 2001 06:37:51 PM
>What is the minimum profit you will accept on your items?<
It's different with just about every item!
Also, depending on similier auctions, it can be VERY low.
For the most part, I start everything at a price I can live with. The 'mainstream' items we market I try for a 200-300% markup, before the selling costs are figured.
(but then again, I have been known to lowball an item just for the heck of it)
As long as I show some sort of profit I'm happy. This is not our only income source, thank goodness.
posted on September 25, 2001 07:05:28 PM
It is strictly a matter of cash flow and how easy to replace an item once it is sold. If very easy to replace, then the market will dictate the price. If need be, I will have to lower my buying price in the future or simply not deal in that item anymore.
If a true collectible and hard to replace, then I price what the lowend should be so it is a bargain to someone. If it does not sell, I will hang on to it and try again.
Profit margin have nothing to do with it. Once I own it, what difference does it make what the margin is anymore? I need to move it on as best as I can in order to get any cash flow. The anticipated profit margin should only be a factor at time of my purchase. However, sometimes the ebay market moves against you and it will be foolish to hang on to something trying to reach a certain profit margin. The listing fees will easily eat that away.
posted on September 25, 2001 07:10:38 PM
I look at my items on an average sale amount basis. Here's why:
1. Some items just don't make it. You sell them cheap just to clear inventory. There might still be 200% markup, but the item goes for only a couple bucks and you do not really make money on sale of that kind.
2. Some items do really well. My favorites are 50 cent one that takes in $32.00 and the $4.00 one that closed at $142.00. My average is $5.66 and maybe $4.00 is "profit". This works out very well for me even as a small seller.
3. You need enough sales times enough profit to make money. If you sell real cheap you can generate a lot of money through volume, but not be real profitable--you work like a dog and every loss cuts deep. Long term steady volume at good margins builds business.
4. Profit means nothing without at least one business goal. I want to generate a certain amount of income every week and put some of it away. If you cannot put some of it away, you aren't profitable enough or you are spending too much.
posted on September 25, 2001 07:15:43 PMThe anticipated profit margin should only be a factor at time of my purchase.... foolish to hang on to something trying to reach a certain profit margin
I have to agree with that. If you make a mistake buying something, or the market comes out from under something, sell for what you can get, reinvest, and move on.
posted on September 25, 2001 07:21:33 PM
I should add what I posted before is only if one have no other venue to sell something. For example, if your Brick & Mortar can generate a sale on a regular basis, clearly you can set the starting price equal to the B&M and hope for a bigger hit.
I think where most ebay sellers have problems is not buying enough. I think a lot of sellers keep minimal inventory. Tough to make a living that way. One is scrambling to find stuff to buy. One should have adequate inventory and pick and choose when to buy for resale. I find a line of credit invalueable for this.
posted on September 25, 2001 07:38:40 PM
I read somewhere that it should be at least 3 times your cost...
I have been pretty lucky in my sales in the past and have gotten more than that, but I always start it out at 3x my cost... of course this probably wouldn't work with HIGH ticket items, but maybe.
Ain't Life Grand...
posted on September 25, 2001 07:44:05 PMOne is scrambling to find stuff to buy. One should have adequate inventory and pick and choose when to buy for resale.
The trick in buying and selling for profit is always in the buying. Price something right, it will sell it self (with a little help around the edges).
I don't know if I quite agree with "pick and choose when to buy", good deals are where and when you find them. Being Johnny on the spot with $$$ when a good deal rolls around is the ticket (IMO), even if you need to borrow money.
posted on September 26, 2001 06:09:21 AM
I remember what someone said on a thread a while ago. If you make a $5.00 profit on 200 items a month, that is $1,000.00. I always keep this in mind, especially when I get a little greedy. I don't always make that much profit (especially when I just want to get rid of it), but then there are times when my profit is out of the ball park and I am always pleasantly surprised.
posted on September 26, 2001 08:44:28 AMllama_lady
I've been at this for 6+ years. Initially, I sold low priced items, and many of them. One day my husband told me it would be a lot easier on me and our packer if I sold 1 expensive item, than 10 zillion small ones.
He was VERY correct.
Business is business. Normally, if I can't keystone a product (keystone is to double the price that I paid), then I need to reevaluate my product or what I am paying for it.
Making $5.00 per item isn't professional. Believe me Wal-Mart, Dillards, Macy's, etc., don't do business this way.
And that is how I see on line selling as a business/profession, not a hobby, and I see no reason to work hard for a $5.00 profit.
Basically, to answer the topic question, if I can't keystone the price, then it isn't an item I need to waste my time selling.
posted on September 26, 2001 09:23:18 AM
That is what makes the world so wonderful, different strokes for different folks. I do this as a PT job and for extra cash, so I can do things differently than others that do this for a FT job. I also do this for far more than money and have been repaid many times over.
My sincere advice is to listen to what everyone has to say and then make the decision that is best for you.
posted on September 26, 2001 10:03:24 AM
I am a bookseller and I do believe in the principles expressed in the famous "bookselling for idiots" threads about seeking $10+ profits on individual books. Achieving this worthy goal is another question. Often enough I do well to clear $5-$6, but lots of times it goes higher than that.
When you are operating on the small profit/high volume model, it feels like the big challenge is finding enough inventory and creating the listings, since there is little duplication and re-posting. It would be brilliant to find one or two high-demand/high-profit items to sell again and again. OTOH, that might get boring, too.
posted on September 26, 2001 10:26:59 AM
I'm a bookseller too, and I would love to make $10 or more on books I sell. Some do and others do not as I mentioned above. I find there are certain kinds of books that routinely sell for more, but they require specialized knowledge on the part of the seller. Many sellers, for all types of items, lose out because they depend on buying and selling strategies more than knowledge, wisdom and some gut instinct.
posted on September 26, 2001 10:56:41 AM
It all depends. I used to start everything at at least 300% of what I paid for it. Then books became a large part of my inventory. I buy a lot of box lots.
So, my strategy is: do research on each item. Use that as a guide for a starting bid (or sales price at fixed-price venues). Protect high-end items with reserves.
I also buy very low. So, if I look at an individual sale, my markup might be 4000%, but with things like boxlots, you can't really do that since some of the books become firewood.
With non-books, I try to make a $10 profit on each item. But if I can't, I get rid of it - I'll sell it at cost with the idea that I can use that money to buy more inventory that will see profit.
Knowlege is power, but even the most knowlegeable person goofs up occasionally. I'm not even close to being the most knowlegeable person, but the goofs are dwindling greatly this last year.
posted on September 27, 2001 10:17:46 AM
I am in the computer business and it is very competitive. I usaly mark things up 8% of what I bought them for. After everybody puts their hands in my pocket I don't make much. To make a decnet living at this I figure I need to buy $150,000 a month in invetory. It is also real hard when you buy something and the next day it is going for half of what you just paid for it. I made a lot of money on RAM in march and april and then the botom fell out of that market. It was ugly I lost a lot of money. I had RAM I bought for $35 and now you can buy the same thing for $10.70. I had to buy 100 to get the $35 pirce. Right now I have about 75 pcs of RAM that are going for several dollars less than I bought them for. I not only lose that I lose the Ebay fees and credit card fees.
posted on September 27, 2001 01:20:42 PM
Well, the best way to figure out your bottom line is to time yourself on an average transaction- that is, to measure the amount of time it takes to complete each transaction from beginning to end, including finding, photographing, listing, packing, and shipping. It is OK to measure in batches and divide this out, as most sellers list their items in batches anyway.
Then decide how much you want to make per hour. If there is one thing I have realized in the past few years of ebaying, it is that MY TIME IS THE MOST VALUABLE COMMODITY I POSESS. I think that many ebay sellers are working for less than minimum wage. I admit that I did when I was a newbie.
My items generally take at least an hour to process and I always want to at least double my money AFTER fees, so that is what I aim for. I make exceptions for items that are extremely easy to list or pack- for example if I have multiples of the same thing, the time factor goes down quite a bit.
posted on September 27, 2001 02:52:48 PM
I need at least a 100% markup except if the item is in big demand and I can flip it for a quick 20% with no risk.
posted on September 27, 2001 03:18:04 PMThen decide how much you want to make per hour.
This is a good point. It's why I never list anything for less than 9.99 unless I know I have a red hot item that I know will bring big bucks and can start it at $1.00 NR.
Also why the stuff I'll put up for 9.99 I don't have more than a couple of bucks in.
posted on September 27, 2001 03:38:12 PM
"Making $5.00 per item isn't professional. Believe me Wal-Mart, Dillards, Macy's, etc., don't do business this way."
You would be surprised with the low margins that major company work with.
There is a major computer supply place.. you likely have seen their catalog.. that work on 4.5 to 5% margin.
They have bought a DLT tape for $82. And sold it for $83. $1 margin!
posted on September 27, 2001 03:43:32 PM
jwpc, sounds logical but how pracical is it for most of us? Even at a 20% margin, 5 items selling for $200, nets $200 profit. We'd need to invest $5000 in inventory to net $1000. A low priced seller has only $250 invested in inventory.
posted on September 27, 2001 04:20:05 PM
Ebay just supplements my income, I am not a full-time seller, but I can do 10 items an hour, including descriptions, pictures, EOA,sorting checks,& packing/shipping. So I am happy if I make 3.00 profit an item. $30 an hour is good money for something I do just to play around. I love it when my profit margins are much larger, but $3 is the minimum I am happy with. I do sometimes sell for less, if I am trying to get rid of "dead" items, or if it is something I have tons of & can relist multiple times. I don't like to, though.
Interesting topic.
posted on September 27, 2001 04:39:32 PMbut I can do 10 items an hour, including descriptions, pictures, EOA,sorting checks,& packing/shipping
6 minutes per item?
I know some things are easy to pack (place it in a padded mailer and address it) and a lot of mine are not. (Some of my items take 40 minutes to pack properly)
Without knowing what you sell, I can't say it can't all be done in 6 minutes, but I have a feeling that some of your time isn't included that 6 minutes.
Buying merchandise. (for me, this is one of my biggest uses of my time)
Research.
Answering emails. (no matter how good the discription is, there are questions here and there, there are ansy buyers who want to know where their stuff is 3 days after they send the money, etc.)
Dealing with problems. (again, no matter how careful you are, stuff happens. A Buyer shorts you on a payment, or is a NPB, or, god forbid, you're the one who screwed up.)
eBay glitches (we've all seen times it's hard to make a listing "go thru" )
posted on September 27, 2001 05:01:48 PM
Most of my items are lightweight & easy to pack. I also use templates & auction software to save time. 10 is an average # of items per hour, occasionally I do less than that. I live in an area without much competition, so finding things to buy isn't difficult, although you are right, I didn't include my time finding things. That isn't "work" to me, auctions are fun to us, I have been going for years. If I never sold another thing I would still go to the local auction at the same rate I do now, once a month or so. I live in a rural area, it is a social event of sorts.
I don't do much research, b/c I tend to stick to certain categories, & I just start everything at a small profit with NR & let it go from there. If I like it, usually someone else will, too. If not it will sell in the local flea.
posted on September 27, 2001 06:23:05 PM
I have been selling on eBay for about two years now, and while I have stayed in the same category, I have gone from one end of the spectrum to the other.
One day I had over 30 auctions close, but most were in the $10-20 range. I remember packing all those items and having boxes of priority mail envelopes and boxes waiting to go out and thinking "this is NOT worth it."
It takes me the same amount of time to list an item whether it sells for $10 or $100. Once I clear out my current stock, I am only going to list things on eBay if I'm going to clear a minimum $50 in profit, shooting for at least $100 in profit 80% of the time.
I could have done the same sales volume with 2-3 auctions if I was selling more expensive merchandise. It is a little risky investing a lot more $$ in each item, but I have enough offline sales channels to not get stuck with something I cannot sell on eBay.
I'm a one-woman operation. I would rather close one $300 auction a day than 30 $10 auctions.
posted on September 27, 2001 06:40:29 PMIt is a little risky investing a lot more $$ in each item
Not if you know your merchadise really well. That's where research pays off. I understand what you are saying about the higher priced items, but for me I have to sell a mix of price ranges, because alot of what I do is take stuff and "part it out". Once I dismantle something, there are $10 items, $25 items, and $200 items. Unless I want to throw money away, I sell it all.
posted on September 27, 2001 07:03:03 PM
I try to make 100% on my items , but if I have a dead item . I am glad to sell it and only make 10% that sure is better than the bank any day!!
