How Do Ebay Sellers Manage To Sell Things Below Market Price And Still Make Money?
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its called wholesaling, basically the seller will contact the manufacturer or another wholesaler and by them at factory prices, these prices they get them for are incredibly small however the must buy in bulk, i sell ipod headphones, genuine apple at school for £1 , however i buy them for just 11p so i make a huge profit
There are a number of ways to do this.
1. You are a wholesale distributor selling product on the side.
2. You are a overstock company that buys overstock of retail stores at low prices.
3. You stole a ton.
4. You sell quallity knockoffs.
5. You are a retailer clearing stock or going out of business.
More often than not it is number 2 or 5.
Most all of the answers above are correct but it all comes down to one thing: VOLUME SALES
When you sell volume, you can reduce your profit margins and make good money.
This is how Henry Ford did it:
VOLUME SALES = HANDSOME PROFITS:
“In October 1908, the first Model T Fords were sold for $950. As Henry Ford found new ways to reduce production costs, he passed the savings on to consumers as lower prices. By 1912, the car was selling for $575. It was the first time that a new car had sold for less than the average wage of U.S. workers. The price of the Model T would continue to drop during its 19 years in production, at one point dipping as low as $280. With each price cut, more and more consumers could afford to buy the cars.
This reduction in price meant that Ford’s profit margins (on each Model T) decreased but its revenues increased. How was that possible? In 1909 the profit on a car was $220. By 1914, the margin had dropped to $99. But sales were exploding. While profit margins on individual cars were smaller, the added sales volume increased total profits. During this period, the company’s net income rose from $3 million to $25 million. Its U.S. market share rose from 9.4 percent in 1908 to a remarkable 48 percent in 1914.”http://www.econedlink.org/lessons/index.…
In short, one time sellers of a particular item cannot be competitive with volume sellers of that item.