posted on December 26, 2000 07:35:53 AM new
I have been selling a range of unique handicraft items at about US$3.00 each & I charge postage at ACTUAL price of $3.20 each.
I am able to pick up, list, and package and post about 24-36 per day. Making a profit after all my expenses of approx. $1.25 each OR at 36 units a day I make $45.00 profit.
I have tried a little experiment by charging a fixed postage/handling rate of $5.50( giving myself an extra profit of $2.30/item) and noticed that if I start the price at $3.00 I only sell half as many but at $3.55 total profit X 18 units I am now making a profit of $63.90 for my day's work. Now I also realise that my listing 'fees' have halved so I make another $4.50/day.
I can now feed my family a little better, but I think that it may be viewed as fee avoidance.
I'm considering putting up my handling charge.
WHAT DO YOU THINK?
Not costa on ebay
posted on December 26, 2000 07:51:23 AM new
And on this "profit" you have to take out taxes and SSI and pay ISP connect charges, and whatever it costs you to find these things. You would be better off in a minimum wage job that offered benefits like health insurance and
45.00/8 = $5.60 per hour
$63.90/8 = $8/hour
If you up your "handling fee" to more than 2X the cost of the item, you will find that your sales drop further ... it's a classic case of finding the point that maximizes profit. I mean you could theoretically sell ONE a day for $3 with a "handling charge" of $100 and make even more money, but the chances of that happening are slim to none.
posted on December 26, 2000 08:34:30 AM new
abacaxi
You would not be any better sell on ebay then in the full time job @ $8 and hour since either way you would be takeing out SS and you would be takeing out state and federal tax and you would still be takeing out ISP cost working full time.
How do I know because I work full time and I still pay all these things.
The Idea is to maximize sales prices till you are makeing profit its not a contest to sell to the most or get the most feed back but to make a profit on what you sell each time.
adding to the varity of what you sell will help incress profit to meet your goals.
For these auction type sales where buyer set the price a fixed shipping or flat shipping rate has alway been the best way to lock in profit as there are more cost then just inventory to cover.
The key to any sucessfull business effort is paying yourself frist buyer dont care if you get paid you must insure this your self. it good that you enjoy what you are doing but you cant eat enjoyment.
posted on December 26, 2000 08:52:21 AM new
personally I'd rather work hard for myself on Ebay for 8.00 an hour than work hard for somebody else for 8.00 an hour....
posted on December 26, 2000 10:19:50 AM new
I agree with brighid868, but all need to remember that the $8.00 an hour job is probably based upon a 40 hour work week.
If Costa makes $45.00 a day at Ebay working 40 hours a week, yes, she is making 5.60 per hour. BUT chances are she is working 3-4 hours a day. At 3 hours a day, her hourly wage is ACTUALLY $15.00 per hour, at 4 hours per day, $11.25.
I work part-time with my website and Ebay. It is better for me, because my hours are flexible AND I have lots of time to spend with my kids. If I had a job outside the home, I'd be working 40 hours per week minimum, at someone else's beck and call.
No thanks. I do much better for myself, averaging $15.00 per hour for my part time work AFTER my expenses. Definately worth it for me.
As far as putting up the handling charge, I would do it, but remember, your profit on that won't be that high after the 7th of Jan, when priority mail rates go up.
