posted on August 8, 2004 09:33:26 PM
Hey all.
It seems that I am alway losing money because I haven't figured a certain fee into to price.
Like vendio has thier cut. PayPal has thiers, and of course eBay gets thiers.
I kicked myself the other day because I listed a certain recipe at .55
It sold and they paid through PayPal. It the end I PAID .20 to sell it!
That was dumb I told myself.
What markup makes sense?
-Kim
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posted on August 8, 2004 09:59:01 PM
I am by no means an expert, but I think my gleanings here help me set my threshold at around 300 to 400% minumum.
The idea, in my book, is that the bidders pay the expenses.
I haven't gone to your link, but is it your ebay product related?
I calculate my costs, eBay, PayPal, cost of the item, etc., and add the lowest "profit" I'm willing to accept. That's how I set my opening bid. Any other way is shooting myself in the foot.
Like Japerton, my minimum is somewhere in the 300-400% range. Final sale price is generally at least double that.
Lucy
P.S. BTW, your signature line is, pure and simple,
and isn't permitted on this board.
edited because it's too late for me to be typing...
[ edited by OhMsLucy on Aug 8, 2004 10:16 PM ]
posted on August 8, 2004 10:21:06 PM
Like Japerton and Lucy, I shoot for a 300 - 400% markup. However, I've recently adopted a new stragety. I list everything at 50% of my cost as the opening bid. What I lose in margin, I'll make up in volume.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
posted on August 9, 2004 01:55:48 AM
Hey! NO FAIR!
If she can push her Geritol, can Ralphie spam his HERBAL VIAGRA and SWEDISH PEE-PEE ENHANCER??
“Our enemies are innovative and resourceful, and so are we! They never stop thinking about new ways to harm our country and our people, and neither do we.” ~ GWBush White House 8/5/4
posted on August 9, 2004 08:15:07 AM
Is this spam? I just think others should be aware of this craigslist.org. More sites, More MONEY! (maybe?) Gotta try anything.
Give Craigslist.org a try. List anywhere. Take a L@@K see for yourself. Not just for local stuff. You can still ship.
posted on August 9, 2004 09:23:32 AM
Time for craigslist.com Selling ANYTHING for less than $20.00 is wasting your time, UNLESS, you have 100's of the same RELIST type items and pack it good with handling rates.
Don't give up, just find a route around.
Give Craigslist.org a try. List anywhere. Take a L@@K see for yourself. Not just for local stuff. You can still ship.
posted on August 9, 2004 09:29:46 AM
your shipping and handling fee should absorb some of your fees.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on August 9, 2004 09:39:09 AM
Thanks jackswebb. I'll give craigslist a look. I think that I need to find a new product. I collect postcards and have thousands, thought I might sell some, and make a little spending money from my hobby. A local hobby shop was closing and I also bought their transportation cards but not many people are interested. Some people seem to be doing great with postcards. Just too much competition, I think.
posted on August 9, 2004 01:21:19 PM
There can be no hard & fast rule for markup. No. 1, the lower your cost the higher the mark up. Why? because of the fee structure of Vendio, eBay & P/P. On the other hand if you pay $50.00 for an item, you can't expect to have a 300-400% mark up. If you can get a 60% mark up, you will sell it for $80.00 & make a profit. A 300% mark up would price you out of the market.
Life Is Too Short To Drink Bad Wine
posted on August 9, 2004 02:01:05 PM
I want to know where some of you are getting stuff you can mark up 300-400%! Are these special finds you get at auctions or flea markets? I'm lucky to mark up my stuff 50%.
I have on very few occasions had items go far higher than what I thought they would - but that is the exception, not the rule.
^..^ meow ^..^ meow ^..^
Time Spent With Cats Is Never Wasted
edited because I can't get my photo to work.
[ edited by rosycat on Aug 9, 2004 02:02 PM ]
posted on August 9, 2004 02:09:00 PM There can be no hard & fast rule for markup.
Of course there is a rule.
And it is a simple one.
Forget percentages. Forget dollar amounts. Clear your mind, grasshopper.
The rule:
Your "markup" is determined by what you can ultimately sell the item for.
That's it! That's all you need to know!
Example:
I have a number of buyers on the line for a specific product: a ladies top. I sold out of them. I called the supplier today to reorder (sort of amazed they still had them as fashions are seasonal) and they said they had had to raise their price 25%.
So. I know what my buyers are willing to pay. I know what the top will cost me. I know what my expenses are. I do the math to discover that the projected profit is enough to make this worth my while, even though the supplier has gotten greedy. (I had already decided that I needed to make a clear profit of at least $5 on this item.)
Now. I know some people who would focus on the price increase, cry "unfair!" and not do the deal. I know some people who would impose a pre-determined markup percentage (because that's what they've always done)and not be able to sell at that price. But it's not about fairness or being set in your ways. It's about making money.
posted on August 9, 2004 05:07:55 PM
I play around with the starting bid until I figure out what figure will ensure me about a 50% sell through rate on all the auctions I post each week,and I start my items at that price. Right now the only category I'm selling in is books.I'm paying about 40 cents a piece for my items and most of them are bid up from what I start them at.
posted on August 9, 2004 06:08:36 PM
Neg,,thanks!,,I took a quick look at that calc. I remember one of my first few sells. bought for 15.00......that's what I entered,,then %? how much % do i want to make? that's when i came right back here. That $15.00 "item" was fought for like the Sands of Iwo Jima. $350.00.....This is an auction forum,,,round and round it goes where it stops nobody knows.........clink,,,,,,,$350.00!!!!!! Ya place yer bets and let it roll......course in todays economy you MIGHT want to start it at what you PAID for it or a little above and Don't forget those "handling charges".
Give Craigslist.org a try. List anywhere. Take a L@@K see for yourself. Not just for local stuff. You can still ship.
posted on August 10, 2004 01:42:53 PM
teach; I agree with you, after all this is an auction, but I was looking at a starting ptice. When my EX & I g=jad a B&M store, we would argue about markup. She wanted mark up some times 300%. Whu=id wiuld never sell. For instance, she bought an organ, it was a concert type & probably sold new for $10,000.00 or more. She paid $80.00 for it & put $1200.00 on it because that was the Blur Book price. A long story shoten. I sold it 6 mos. later for $250.00. Still made almost 300%.
Life Is Too Short To Drink Bad Wine
posted on August 10, 2004 05:49:01 PM
Gotcha sanmar.
I don't set starting prices, so that's an issue I never have to deal with.
I can't tell you how many fellow antique dealers I know bought the "double what you paid for it" line for markups and were stuck with the item for perpetuity (no one likes to admit a pricing mistake).
posted on August 11, 2004 09:22:46 AM
To us, the first consideration is that the item not be readily available at Wal-Mart (which we shop to keep an eye on products & prices), and that it either not be available from anyone on eBay OR that we can have the very best price, if we were to post it on eBay. THEN, we check the wholesale market at major conventions, we buy by the case and THEN AND ONLY THEN, do we purchase product to sell on our web sites, AND eBay, if we choose to put it on eBay.
We totally stay away from FAD items, you know the “hottest” thing on the market type item. We quickly learned years ago, that in most cases, this is a very volatile market, and can bottom out fast, and then one can be stuck with product that there is no market for. We try to choose unique, relatively less available items, but items which are highly desirable, AND items which we can continue to sell year in and year out.
This is an after thought on the above, as it is seldom a consideration, but we have encountered such a problem a few times in the last number of years, AND THAT IS, is the product photographable! We have had a few rare items, which regardless of lighting, camera, etc., just never properly photographed to reflect the uniqueness of the item.
HOW we price items depends on the item, and how it tests in the market, or how good a wholesale buy we got on the item. There are some items which we can just barely keystone; some items which are pricy to begin with but they are extremely popular but to be competitive we only mark up about ¾ of the original price (we make our major profit on volume), and then there are some which are extremely popular, the competition very limited, and the wholesale price a steal, and on those some are marked up 5 times or more.
We see, the bottom line is, keeping a keen eye on Wal-Mart and the whole on line market, not just eBay. Being aware of the best wholesalers in the fields we sell in (which is highly diversified), and then offering the item at the best price “the market will bear.”
LAST BUT NOT LEAST, in real estate it is “location, location, location!” With on line sales (web sites & eBay) we see A-F-T-E-R ALL OF THE ABOVE has been considered, THEN it is “presentation, presentation, presentation.” Good customer service makes for repeat buyers, but 1st impressions, are the presentation of the product, the quality of the photographs, completeness of the description, payment terms, etc.
That is how my husband and I do it, and we have been at it, full time since 1996, on the internet, and we have been self employed for the last 19 years.
My Boss Is A Jewish Carpenter!
[ edited by jwpc on Aug 11, 2004 09:28 AM ]
posted on August 11, 2004 09:36:22 AM
i make life easy for myself- i dont sell anything sold by walmart.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on August 11, 2004 09:45:26 AMstopwhinning That is what I was saying, but if one doesn't keep a close eye on Wal-Mart, you can't keep current with what they are bring in, and it is almost impossible to compete with them on a duplicate item because of the volume buying they can do.
posted on August 11, 2004 08:43:12 PM
I am really impressed with all your answers.
I have in the past sold items I picked up at Costco warehouse. They sold even tho I listed them at my purchase price.
I also like to shop Big Lots and other close-out type stores. I still have some stock that just doesnt want to move.
I want to thank everyone for a very informative thread.
-Love and Blessings
Kimberly Flores
So don't get tired of doing what is good.
Don't get discouraged and give up, for we will reap a harvest of blessing at the appropriate time.
[ edited by rosycat on Aug 9, 2004 02:02 PM ]