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PoshMark is next on my list. After we get back from eBay Open next week, then the cross listing begins…
Amen brother!
I don’t think you ever give that impression. Much different than other YouTube resellers, you keep it real. There are some that oversell the money that can be made, without talking about the work that it takes to get there. That is how a following grows and it increases the subscriber and ad revenue that can be generated, but I think that after a few years of the boom, we are sliding down in terms of how much people want to do this. After a couple of years of the grind that this business can be, many see the reality of what it takes to be successful. It ain’t easy, and how you source and process listings makes a big difference.
This is why I like how you guys have one type of store, and we have another. And why I try to explain as much as possible what the true numbers and reality is of what it takes to be successful in this business. Your route is very feasible, it just requires lots of patience and lots of listings to get consistent sales. Our model has a faster return, but requires more capital up front and requires an efficient process to list 150+ items per week. Both work, both are successful, but different risks and rewards.
You can if you want, but I think I pretty much know what your net income is each week, doing some back of the envelope math…
🙂
I agree. Revenue gives Vanity, but Profit gives Sanity.
His latest 60 day was $117k on 1,134 sold items. So 567 items sold per month at an ASP of $103.36. Solid volume and solid ASP. I’m guessing he is 10% Net Income on the low end (after employees, building, COGS, etc), so profit of $11.7k per month. Not counting the revenue from sales in his shop.
He isn’t hurting…
07/16/2018 at 10:29 am in reply to: Scavenger Life Episode 368: Is Our Business an eBay Hack? #45502Mike and Mark: Finally back from the wedding, so I can read through all this. My take…
Mark: To your point on COGS, I have two uses for COGS, and they are calculated two different ways. For our weekly reporting (Management Reporting for Mike), we use the COGS in SixBit. Each inventory item has the cost of purchase plus sales tax. Therefore, when we see what has sold and run our reports, our COGS are already in there. However, for Tax purposes, we use the Beginning Inventory + Purchases – Ending Inventory = COGS calculation. We use our “book” value of inventory from SixBit for Beginning and Ending, and our Quicken reports for Inventory Purchases. Both quick, both correct, both useful for their individual purposes.
Mike: I love how you think, putting a Unit Cost on every item. It is something to be cognizant of. However, to split a hair, cost of cleaning an item isn’t part of COGS, but a part of Unit Cost. COGS should only be cost of the item + sales tax (99.44%). You can argue that packaging (tape, boxes, polybags, etc.) are part of COGS since they are a Direct Material being sent with the item sold. I just don’t because it is small and I don’t want to change to do it. Were I a 100% official Accounting Department, yep, that is what I would do.
Just wanted to put in my 2 cents for the 99% of folks that may read all this and think that they have to include ALL costs in COGS. ALL costs should be in your financials, especially for taxes, but COGS should only be the Direct Materials. For Management Purposes, I do think an all in Unit Cost would be beneficial for people to know. I do this in my head since we run in volume on certain items (clothes, jeans, etc.).
PS – Mark, are you the one that called in this week? Wasn’t sure if you were the same Mark… I would love to talk more about your point about buying at $2 and selling at $18.
We are with you. Use the PayPal card for eBay fees and inventory for 1% back. Going to have our 2% back card shortly and want to start using it more as well.
Like a casino…small advantages add up.
Absolutely true. I think his employees are him, his wife, and his brother that works for him. Maybe another person, but not sure.
I also know that his shop would have non-eBay sales as well. I would love to know his revenue split between eBay and Storefront. You know me, I’m a business and numbers person, so I would LOVE to see it all…
I only see his gross, which is really high. From what I have seen though, I think he is around a 3x-5x on his ROI. He will do 2X on some high dollar items, but no, he doesn’t have the whole numbers shown.
His most recent 60 Day total was $117,213.82
Jay: Yes, Craigslist Hunter will share his numbers on Instagram or on Youtube. He isn’t consignment, he runs a pawn shop, and that is how he gets such great items.
On your comments about listing only the Best of the Best, I think that is a really good comment. For people that do this part time, THAT is what I would have them focus on, provided that they are a veteran seller.
New sellers, I would keep the cost low (sell what is in the house), and list high STR items just to get used to the process (listing, photoing, storing inventory, shipping). Plus, with high STR items, you get the rush of making a sale, and makes it feel like you are getting a reward.
After that, since part timers can only list so much, I would have them list the Best of the Best items if they can wait for the cash and are willing to sit on items. This way they are getting the best for their time.
Yeah, you always have a lot of work to do. It can sometimes feel that you are working but not getting work done. For me, that happens when I’m not listing. This is why I started doing all the Admin work (accounting, reporting, etc.) once per week, and I got the process down to about 30-45 minutes.
Just getting all the non-listing parts of the business to be as automated (or outsourced) as possible is huge. Then speeding up the listing process.
Time is the one resource we can’t get back, only spend as efficiently as possible.
Just finished up the Podcast. Funny about Ryanne doing the grilling now. Veronica LOVES when we grill, and she has started to learn how to do it herself now too.
Yep Jay, it is an orchestra on the grill!
LOL!
Yeah, when he messaged about not wanting the frame (and to his point, the potential broken glass could damage the art), I smacked my head. We have done this a lot before. Next time…ASK!
At this point, when we repackage and put in a tube, we are thinking just Priority International through USPS or UPS. I figure we will give him the choice.
I always think that eBay most closely resembles fishing. We are putting our bait in the water, and we never know when we will get a bite. You put 500, 1000, 2000 lines in the water, and your chances of consistent bites are much better. The bites are random, but 99% of the time…you will get a fish at some point.
But if we have to stay in the casino…poker. Those that know what they are doing will make a good living at it. When the money comes in is more random, but you can make an hourly wage at poker. I have done this myself.
Funny thing is…I equated Poker to Fishing as well. Patience…
Welcome Steve! Very cool to start seeing that gold in the “garbage”.
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