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Loved the call in guest and agree with the idea of specialization v generalization. I posted the comment below on 474 – probably too late for anyone to actually read it. Since the topic came up again this week, re-posting. Would love to hear what others have done in the quest to sell higher priced items. : )
Selling More Expensive Things – What I’ve learned over the last few Years
You’re not alone in the desire to sell better things. You guys have mentioned this on a few podcasts recently. This has been a goal for me over the last couple of years. I work full time, eBay is my side hustle / hobby. My store has fluctuated between 300 – 500 items. In 2017 I tore my ACL and had a lot of time off my feet and away from eBay. I took a really long break, and when I came back, I decided to change what I sell. Since real numbers help, I included my rough numbers for the last 4 years. 2016 I was selling the basic scavenger stuff – clothes, yard sale items, whatever I could scavenge. The last two years I’ve been making a serious effort to learn and sell better and more expensive antiques & artwork. I think I’ve got a long way to go, but I’m having fun and learning a lot along the way. I by no means think I’ve got this all figured out, but I thought it might be an interesting forum discussion to share some of what I’m learning and hear from the community on the subject. Below are my numbers and reflections.
Many thanks to Jay and Ryanne, this community and the podcast has been inspirational, encouraging and motivating.
Cheers – Kyle
The Numbers
<u>2019</u>
- Revenue: $26,527 (not including shipping fees)
- COGS $9,104
- Average Price of COG = $36.27
- Profit $13,237 – After cogs, fees, and all expenses
- Profit per Item: $52.53 (252 sales)
- Sales resulting in over $100 profit: 44
<u>2018</u>
- Revenue: $30,648 (not including shipping fees)
- COGS $10,318
- Average COGS = $28.50
- Profit $15,513 – After cogs, fees, and all expenses
- Profit per Item: $47.50 (362 sales)
- Sales over $100 profit: 53
<u>2017</u> * Tore my ACL this year – majorly disrupted eBay
- Revenue: $8,278 (not including shipping fees)
- COGS $2,165
- Average COGS = $13.12
- Profit $4,921 – After cogs, fees, and all expenses
- Profit per Item: $30.00 (165 sales)
- Sales over $100 profit: 10
<u> </u>
<u>2016</u>
- Revenue: $20,000 (not including shipping fees)
- COGS $3,647
- Average COGS = $6.04
- Profit $15,063 – After cogs, fees, and all expenses
- Profit per Item: $24.95 (603 sales)
- Sales over $100 profit: 14
Reflections on the Numbers / Things I’ve Been Learning
#1 – My profits have not skyrocketed, but I’m handling less items: My final profit hasn’t dramatically jumped. The final number between 2016 and the last two years is about the same – BUT – I’m making the same amount selling about half as many items. I’ll note this as well – I’m a collector, some of the best stuff stays in the house, If I liquidated all the “good stuff” I’ve picked up over the last couple of years, I think my profits could as much as double each year. Selling fewer better things does mean less shipping, fewer items.
#2 – My average profit per item is rising. Happy with this. Hoping to continue this trend. Since I’m a hobby seller, this is a big metric for me. I like my career, don’t intend to leave – so it’s a win if I can use my limited time to make more per listing.
#3 – My Cost of Goods is also rising. This is unavoidable. To sell better stuff you’ve got to spend more money. Every once and a while you find a $600 item at goodwill for a couple bucks, but its far more likely that you’re spending $300 for a $600 sale.
#3a – I Have a Lot More Money Tied Up In Inventory. If you’re just getting started – stick to the thrifted items. The difference in my COGS between 2016 and now is 10k.
#3b – Insurance. Chances are your basic renters or home owners insurance does not cover artwork and collectable. I know have a separate insurance policy to cover my inventory and collection. This may be worth considering if you start spending more on your inventory.
#3c – The “Dry Tinder” Principle. When you go camping you always want to have a little dry tinder on hand so you can quickly start a fire when needed. To be effective picking and buying better and more expensive items you need to have a decent amount of cash on hand. If you get a chance to buy a whole collection or a whole estate of good items, you don’t want to miss out. This year my goal was always to have at least 10k available to pounce. I know antique dealers that keep 50 or 100.
#4 – It’s more interesting / more fun. Is it worth it? For me it has been. I got really tired of selling blue jeans and t-shirts. I feel like I’m learning a lot more, developing expertise in a few areas, and creating future earning potential every year. The knowledge is an asset that feels like a growing investment. The inventory is also a semi-liquid investment, hopefully growing in value over time.
#4b – It better be interesting. You can’t spend time, energy and money on things you don’t care about. Pick something that can hold your interest.
#5- Educate yourself – Read and Research. My interest really started with one category that really struck my interest. Early on I went to the library and checked out every book on that category I could find. An old antique dealer I know said that if you read a book on one category you likely know more than 99% of the population on that item. If you want to sell expensive stuff, do you know about expensive stuff? Follow the expensive auctions, join facebook or reddit groups of dealers and collectors, ask questions, identify some sellers who are dealing in the kind of stuff you want to sell – observe their store. Learn one niche market – then learn another one! Every year I try to push into some new areas, it makes me a more effective picker.
#5b – Educate yourself on substiles. In high end stuff subtle differences can mean huge differences in value. Size, condition, color, age, so many things can change value. Collectors absolutely know the difference, you need to know it too, or you’re sunk. Worthpoint has been really helpful to me in learning.
#5c – There is a cost to education. Leveling up for me has meant being willing to take risks. I’ve had risks that have paid off, and I’ve had pieces I’ve lost money or broke even after selling. That’s the cost of education. I make less mistakes now than I did before, but it’s a part of the game.
#6 – My picking has changed. New locations and tactics. I still pick thrifts and yard sales, and love doing it – BUT I’ve also added picking antique stores (yes there are absolute deals to be had in antique stores, not every dealer can know every item) buying direct from collectors, and buying estates or partial estates. For me I had to start trying new things to find different kinds of stuff. I imagine that would be true for most people. If you could buy dozens of amazing items at your current locations you’d already be doing it.
#6b – My Picking has changed: Leaving some things behind. I have to be willing to leave some things behind that I used to pick. If I blow my buying funds and then listing and research time on low dollar stuff, then I don’t have the funds or time to invest in the stuff I want to be dealing in. Over Covid I found a couple boxes of 2015 / 2016 thrifted clothes – I pulled one good jacket and donated the rest back.
#7 Patience: This is nothing new here – List it and leave it. Some sell fast, but sometimes the big sales take a couple years. The scavenger life pipeline hasn’t changed – but there is more cash tied up in the pipeline.
#8 – Trust / Community: Reputation in the collecting community has become important the more I’ve gotten into some niches. In many categories a lot of the collectors and dealers know one another. If you can develop trust you can get better prices, and more access to better inventory. More of my sales ( a few a month at least) have moved off of eBay, direct to collectors I’ve connected to or repeat customers.
I’d love to hear from you. What lessons have you been learning? What has helped you level up into better stuff? Many Thanks – Kyle : )
Selling More Expensive Things – What I’ve learned over the last few Years
Jay, you’re not alone in the desire to sell better things. You guys have mentioned this on a few podcasts recently. This has been a goal for me over the last couple of years. I work full time, eBay is my side hustle / hobby. My store has fluctuated between 300 – 500 items. In 2017 I tore my ACL and had a lot of time off my feet and away from eBay. I took a really long break, and when I came back, I decided to change what I sell. Since real numbers help, I included my rough numbers for the last 4 years. 2016 I was selling the basic scavenger stuff – clothes, yard sale items, whatever I could scavenge. The last two years I’ve been making a serious effort to learn and sell better and more expensive antiques & artwork. I think I’ve got a long way to go, but I’m having fun and learning a lot along the way. I by no means think I’ve got this all figured out, but I thought it might be an interesting forum discussion to share some of what I’m learning and hear from the community on the subject. Below are my numbers and reflections.
Many thanks to Jay and Ryanne, this community and the podcast has been inspirational, encouraging and motivating.
Cheers – Kyle
The Numbers
<u>2019</u>
- Revenue: $26,527 (not including shipping fees)
- COGS $9,104
- Average Price of COG = $36.27
- Profit $13,237 – After cogs, fees, and all expenses
- Profit per Item: $52.53 (252 sales)
- Sales resulting in over $100 profit: 44
<u>2018</u>
- Revenue: $30,648 (not including shipping fees)
- COGS $10,318
- Average COGS = $28.50
- Profit $15,513 – After cogs, fees, and all expenses
- Profit per Item: $47.50 (362 sales)
- Sales over $100 profit: 53
<u>2017</u> * Tore my ACL this year – majorly disrupted eBay
- Revenue: $8,278 (not including shipping fees)
- COGS $2,165
- Average COGS = $13.12
- Profit $4,921 – After cogs, fees, and all expenses
- Profit per Item: $30.00 (165 sales)
- Sales over $100 profit: 10
<u> </u>
<u>2016</u>
- Revenue: $20,000 (not including shipping fees)
- COGS $3,647
- Average COGS = $6.04
- Profit $15,063 – After cogs, fees, and all expenses
- Profit per Item: $24.95 (603 sales)
- Sales over $100 profit: 14
Reflections on the Numbers / Things I’ve Been Learning
#1 – My profits have not skyrocketed, but I’m handling less items: My final profit hasn’t dramatically jumped. The final number between 2016 and the last two years is about the same – BUT – I’m making the same amount selling about half as many items. I’ll note this as well – I’m a collector, some of the best stuff stays in the house, If I liquidated all the “good stuff” I’ve picked up over the last couple of years, I think my profits could as much as double each year. Selling fewer better things does mean less shipping, fewer items.
#2 – My average profit per item is rising. Happy with this. Hoping to continue this trend. Since I’m a hobby seller, this is a big metric for me. I like my career, don’t intend to leave – so it’s a win if I can use my limited time to make more per listing.
#3 – My Cost of Goods is also rising. This is unavoidable. To sell better stuff you’ve got to spend more money. Every once and a while you find a $600 item at goodwill for a couple bucks, but its far more likely that you’re spending $300 for a $600 sale.
#3a – I Have a Lot More Money Tied Up In Inventory. If you’re just getting started – stick to the thrifted items. The difference in my COGS between 2016 and now is 10k.
#3b – Insurance. Chances are your basic renters or home owners insurance does not cover artwork and collectable. I know have a separate insurance policy to cover my inventory and collection. This may be worth considering if you start spending more on your inventory.
#3c – The “Dry Tinder” Principle. When you go camping you always want to have a little dry tinder on hand so you can quickly start a fire when needed. To be effective picking and buying better and more expensive items you need to have a decent amount of cash on hand. If you get a chance to buy a whole collection or a whole estate of good items, you don’t want to miss out. This year my goal was always to have at least 10k available to pounce. I know antique dealers that keep 50 or 100.
#4 – It’s more interesting / more fun. Is it worth it? For me it has been. I got really tired of selling blue jeans and t-shirts. I feel like I’m learning a lot more, developing expertise in a few areas, and creating future earning potential every year. The knowledge is an asset that feels like a growing investment. The inventory is also a semi-liquid investment, hopefully growing in value over time.
#4b – It better be interesting. You can’t spend time, energy and money on things you don’t care about. Pick something that can hold your interest.
#5- Educate yourself – Read and Research. My interest really started with one category that really struck my interest. Early on I went to the library and checked out every book on that category I could find. An old antique dealer I know said that if you read a book on one category you likely know more than 99% of the population on that item. If you want to sell expensive stuff, do you know about expensive stuff? Follow the expensive auctions, join facebook or reddit groups of dealers and collectors, ask questions, identify some sellers who are dealing in the kind of stuff you want to sell – observe their store. Learn one niche market – then learn another one! Every year I try to push into some new areas, it makes me a more effective picker.
#5b – Educate yourself on substiles. In high end stuff subtle differences can mean huge differences in value. Size, condition, color, age, so many things can change value. Collectors absolutely know the difference, you need to know it too, or you’re sunk. Worthpoint has been really helpful to me in learning.
#5c – There is a cost to education. Leveling up for me has meant being willing to take risks. I’ve had risks that have paid off, and I’ve had pieces I’ve lost money or broke even after selling. That’s the cost of education. I make less mistakes now than I did before, but it’s a part of the game.
#6 – My picking has changed. New locations and tactics. I still pick thrifts and yard sales, and love doing it – BUT I’ve also added picking antique stores (yes there are absolute deals to be had in antique stores, not every dealer can know every item) buying direct from collectors, and buying estates or partial estates. For me I had to start trying new things to find different kinds of stuff. I imagine that would be true for most people. If you could buy dozens of amazing items at your current locations you’d already be doing it.
#6b – My Picking has changed: Leaving some things behind. I have to be willing to leave some things behind that I used to pick. If I blow my buying funds and then listing and research time on low dollar stuff, then I don’t have the funds or time to invest in the stuff I want to be dealing in. Over Covid I found a couple boxes of 2015 / 2016 thrifted clothes – I pulled one good jacket and donated the rest back.
#7 Patience: This is nothing new here – List it and leave it. Some sell fast, but sometimes the big sales take a couple years. The scavenger life pipeline hasn’t changed – but there is more cash tied up in the pipeline.
#8 – Trust / Community: Reputation in the collecting community has become important the more I’ve gotten into some niches. In many categories a lot of the collectors and dealers know one another. If you can develop trust you can get better prices, and more access to better inventory. More of my sales ( a few a month at least) have moved off of eBay, direct to collectors I’ve connected to or repeat customers.
I’d love to hear from you. What lessons have you been learning? What has helped you level up into better stuff? Many Thanks – Kyle : )
Thanks for all the helpful responses – sorry I didn’t get back on here and respond. I didn’t change much – just kept listing. I’ve had good sales through the second half of December, but mostly because I’ve been listing good new merch. I do think it’s interesting that the seller HUB shares that the whole market is down more than 10%. It would be interesting to know how much down it is? I still feel like I’ve had much better sales volumes in Decembers of previous years.
I got worthpoint a couple of years ago – It paid for itself in one day of picking. It is so powerful to be able to research art and oddities. Jay – you keep talking about wanting to sell better value stuff, more expensive things – Worthpoint has helped me do that. Being able to see the absolute top of a category over the last decade is amazing. It’s also very helpful to be able to look for weird and obscure items that might not be on the 1yr terapeak tool. No one NEEDS terapeak, but it is fun and at least for me has made me money. I often pick antique stores now – never did that before.
Decided to roll the dice lol.
I called ebay today – they looked at my listing and stated
– You have good pictures, your description is detailed, and you have sold as-is – we would back you in an INAD. – Nothing in writing or anything, but I felt more confident and think I might be able to leverage the call if I have I need to.
– I also sent a message to the buyer to make sure they had read the description and noted that returns are not accepted. They messaged back – so far so good.Had $20 in the item – the upside of $750 was too much to resist.
Item was a molded Mc-Donalds Chair from the old school playplace – Burger Stack.
Search them, they’re amazing – and BUY if you see them!Thanks for all the help gang.
The actual wording was “un-trusted buyer” – left for this account by another seller. Sometimes I check the feedback when I have an offer on a big item. If they as a buyer leave a lot of negatives, or if other sellers have left hints in their feedback … sometimes I avoid those accounts. Especially overseas : / INAD on a big heavy item would be a huge pain.
Just started using this week – helped a ton with two facebook sales – both shipped – basically gave me ebay pricing without ebay fees. Super nice! I think it will allow me to be a little more aggressive on sales on facebook and instagram
Thanks Steven – figured you were the best shot at identifying. : )
Is it worth opening them and seeing if any of the components are identifiable?Sorry for the multiple posts – when I put this link in the original post i got a 403 forbidden error screen : /
Thanks for your responses guys! MDC – Thanks for putting this in perspective. I won’t spend much time worrying about getting this choice just right. In the grand scheme of things, it’s not going to make a huge difference : ) Enjoyed reading your “wall of text”
Merry Christmas to all : )
