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Picking Pair: “I think a lot of individuals flame-out because it is hard to make a living wage doing eBay full time alone until a large enough inventory is established, which can take years. Couples doing eBay together can share the work and living expenses, plus can build up the inventory much more quickly.
But once you have the inventory, and you see the cash coming in weekly, it is hard to give-up on it as it provides more fun and freedom than most any other form of income.”
You are 100% right. Veronica and I LOVE doing this together. We can pick each other up, we focus on different items, and we are TOGETHER. My forecasted numbers have proven what it takes for our numbers to do be what we want them to be (we are about 50% of the way there), and building that inventory is the key (by that, I mean putting in the consistent level of listing needed to eventually produce the numbers we want).
And once the numbers start coming in…it is like a drug.
Now we are working to get the business a true business (not self-employed), with employees and processes that gets us out of the daily grind and into the key part…sourcing correctly. That is the money making part of this game. Our new photographer is working out well, and we are getting him dialed in to what we need and how to help his process be efficient (so he makes good money as well).
It is getting fun…
Shayward: “More then anything I’m just very driven and willing to work.”
Two very important ingredients…and they can’t be taught.
Keep that up.
Mark: Perfect Experiment! That is exactly how I forecast each month. I might make adjustments to the most recent months pricing if it makes more sense, but using the past month’s STR for me is a great gauge on getting the seasonality of our sales to come through.
Shoot me a message sometime at tsatterf@yahoo.com. Maybe we can meet for coffee or breakfast sometime.
“Or maybe we could just get together and eat some caramels. When you think about it it’s just is arbitrary is drinking coffee.“
Absolutely!
When my Parents lived here, I would take my dad to get the discount. Anything to save the money!
I know that store. Pickings for us have never been good there, so we don’t go there anymore. Try the Mile High Thrift north of there. Wednesday is best if you are over 55 so you can get a 50% discount.
Yes, we went last year, and are discussing if we will go this year. The information in the sessions was interesting, but the best part was getting to talk with specific eBay reps to answer our questions on Guaranteed Delivery, they worked with us to make sure we knew how it would work, and we signed up and were part of the first wave of EGD sellers. We also got a lot of good questions answered with the folks from SixBit (and partied with them at the Barenaked Ladies concert…John Slocum is a HUGE BNL fan).
The other part we enjoyed, and would be of biggest benefit to us this year, would be networking with other sellers to learn their strategies on sourcing, listing, etc.
The price is very reasonable for the value that you get. Mandalay Bay is a steal at that price, and you get a TON of free food for 3 days (we didn’t eat out except for our traditional dinner at Casa de Amore, and our favorite singer George Bugatti was there that night!). Plus, we pack on an extra day or so for a little vacation, and work in some sourcing while in Vegas.
Ferengi: We starting using a Spreadsheet on each item, and we have now moved to SixBit to do that. When we list each item, its cost is added so that we know what the COGS was automatically.
I have been tempted to move to an average cost model, but I don’t know at what level (All items, or segregate by ???). I could do clothes in one pool, shoes in another, and hard goods in a third, but for now, it is easier to add the actual cost into SixBit.
cmtella: Looks like your model is mostly on a 2X return (your sales are 2X of your purchase price). Is that by design to limit your time and the amount you have listed? I have no problem at all with that model at the ASP and Profit you are generating (in fact, we are looking to add more of these items to our mix.
cmtella: those numbers are very impressive! Are these large items? Or are they easy to ship?
No, you cannot use them for personal use. If you purchase an item for resale, then later use it for personal use, you are to self report that use as Use Tax and remit to the state.
They would catch that in an audit.
Yes, you can write off the tax you paid as COGS, but you are still losing in the long run.
Here are some examples for a year using a sales tax exemption form:
Purchase Cost: $24,000 (no sales tax paid)
Revenue: $100,000
Profit: $76,000Tax Rate: 15%
Income Tax Paid: $11,400 (76,000*.15)Without a sales tax exemption:
Purchase Cost: $25,980 (8.25% sales tax included)
Revenue: $100,000
Profit: $74,020Tax Rate: 15%
Income Tax Paid: $11,103 (74,020*.15)
Sales Tax Paid: $1,980 (24,000*.0825)
Total Taxes Paid: $13,083All in all, you save money on taxes by using a Sales Tax Exemption Certificate.
