Members bcurrier Posted February 11, 2008 Members Report Posted February 11, 2008 I pretty much agree with you, Peter. I'd add bidding collusion to that - mostly by sellers to bump up bid prices. Bill Quote
Members bcurrier Posted February 11, 2008 Members Report Posted February 11, 2008 ABSOLUTELY NOT! IRS lets you deduct the cost of goods, but you still charge for that. IRS lets you deduct postage costs, yet you charge for that. Same thing. Agreed. That's the difference between sales tax and income tax. It's fundamentally profit that's being assessed when it comes to a company's income tax, so cost of goods, labor, misc. business expenses, etc. are taken out of the equation. Conceptually, it doesn't matter how the business recoups expenses, i.e., whether embedded in the sale price, as with labor and other cost of goods expenses, or paid directly by the purchaser as with shipping and handling. Bill Quote
Members unicornwoman Posted February 11, 2008 Author Members Report Posted February 11, 2008 Labor costs to perform the packaging should be incorporated into the price of the item if you're a sole proprietor type of business. I feel that pricing system ends up charging the customer too much for the items that I mostly sell and the figures I posted above PROVE it on only 5 yards. It would be absolutely ridiculous on more than 5 yards. (No, customers needing more than 5 yards might not want spools as what they are wanting might be, say 2 yards in each of 4 colors and each of 3 widths. They'd much prefer to buy what they need from me than buy 24 different spools....) Also, take into account that if a package is best shipped Priority Mail that (unless Rush shipping was requested by the customer at the time of the order), I pay for that upgrade entirely myself. Also, take into account that part of my flat shipping fee was chosen to determine what type of customers I want. I'm not interested in doing business for $1 or $2. I have a major competitor that has a minimum order requirement (and she charges a shipping/handling fee on it). I wanted to position myself as different from her, so that there would be times people selected me just because I didn't have a minimum order requirement. If you want to order $1 worth of merchandise, fine, but as it still costs me a set amount to process an order, the order has to have a set shipping/handling fee. I use 1 set fee on most items because 1) it was too much of a hassle remembering the other quotes, especially when the customer at the last minute would change the order, yet pay with the original shipping quote and 2)I want larger orders, so I cover the extra costs on those from the extra cash flow of a larger order. Conceptually, it doesn't matter how the business recoups expenses, i.e., whether embedded in the sale price, as with labor and other cost of goods expenses, or paid directly by the purchaser as with shipping and handling. Bill Quote Melody D. Snow The Unicorn Woman (established 1980) Lillian, Texas, U.S.A. Miniature Tackmaker, Leathercraft Artist, & Freelance Writer http://www.unicornwoman.com
Members bcurrier Posted February 11, 2008 Members Report Posted February 11, 2008 Melody, yours is a perfect example of a well-thought out strategy. The only thing I'd add regarding pre-set fees is that they can affect your tax position. Net positive adds to your taxable income, net negative could be treated as an expense or perhaps as an operating loss - have to check with a tax person on that one. No problem either way, as long as you allow for it in your year-end cash position. Bill Quote
Contributing Member Regis Posted February 11, 2008 Contributing Member Report Posted February 11, 2008 One very good thing about ebay is that it is not mandatory. It is also not some kind of government handout. I don't need to buy there and I don't need to sell there. If "I" choose to use it as buy/sell resource then it is because it has (with all its flaws) some benefit for "me". Otherwise, I simply don't participate. I don't own or manage it nor do I think they need to change to meet my needs. If it is not properly serving "people" then it will deminish and fail or correct itself. my 2c too Quote God, Family, and Country (although liberals are attempting to destroy these in the USA)
Members K-Man Posted February 11, 2008 Members Report Posted February 11, 2008 To each their own on how they plan and run their business - each style may add to or take away from one's bottom line. I know this from my own personal experience. Best of luck to you. Quote
ferret Posted February 12, 2008 Report Posted February 12, 2008 Found this article about ebay, you might find it amusing http://www.theregister.co.uk/2008/02/11/ebay_laptop_auction/ Quote Politicians are like nappies, both should be changed regularly for the same reason.
Members unicornwoman Posted February 12, 2008 Author Members Report Posted February 12, 2008 Found this article about ebay, you might find it amusing http://www.theregister.co.uk/2008/02/11/ebay_laptop_auction/ I have some fellow hobbyists that have been burned with fraud stuff, so I'm not laughing. It is too close to possible. Quote Melody D. Snow The Unicorn Woman (established 1980) Lillian, Texas, U.S.A. Miniature Tackmaker, Leathercraft Artist, & Freelance Writer http://www.unicornwoman.com
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