March 28, 2005
In this issue:
* Happy Easter!
* Next "Live" Auction Genius Course Begins Saturday, April 2
* Feature Article - What To Sell On eBay: Lame Idea #3
* One Last Thought
Happy Easter!
Happy Easter to everyone. We're on Spring Break although times vary in different locations. If you're off on holiday, have an awesome time - and don't get sunburned! Those pale winter skins need to tan slowly. :-)
Next "Live" Auction Genius Course Begins Saturday, April 2
Our feature article discusses some of the ... inadequate (being polite here) ... ways to find products to sell on eBay.
There's more to it, though, than just putting some object up for sale. Running a profitable eBay business is a <science>. It's not 100% but what science is? Playing the eBay game is not playing the slots in Vegas. It's about a very calculated - and limited - risk. Buying $5,000 of product and hoping it will sell is NOT how to do business on eBay.
The Auction Genius course teaches you how to how to stop playing Russian roulette and get sound answers <before> you rush into the market place.
Here is a follow up email from Don Worley, a member of our last class:
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"You certainly set the standard when it comes to mentoring with your courses and bonuses. I purchased a mentoring/business coaching program (with no bonuses) a few years back and it was 3 times what I paid for your course with only 6 hours of total mentoring! You are most definitely correct that bad information hurts your business and your chances for any success. In comparison of mentoring programs I didn't even get 1/20th the information out of their courses that I received from yours and I paid them more money for a bunch of bad information. It's too bad there are a lot of scam sharks out there that take advantage of people and feed off those who want to start up a business.
Your information packed courses provide a step by step way of starting a legitimate business, sourcing products, selling through auctions, and the list goes on and on... since you've already been there and done that. Sydney your knowledge of internet business and auctions shows with what is being taught which goes a long way in avoiding many costly start up mistakes. I just cannot say enough about your Auction Genius Course CD & Live instruction courses... you're the BEST in the business. Thank you! Thank you! Thank you!"
http://auction-genius-course.com
Feature Article - What To Sell On eBay: Lame Idea #3
In the last issue of Auction Gold I wrote an article about two really weak ideas: looking for "hot" products and the ever-popular, "just go to garage sales and flea markets". We received a lot of feedback on these, and so I am going to publish a series of lame ideas for finding products. I'm calling them lame, rather than something more negative because sometimes they actually do work. It's just that they're so inefficient that they're not worthwhile - IF you want an eBay business, instead of an eBay hobby. If you simply enjoy going to garage sales, or whatever, then they're not so bad.
Lame Idea #3 is to use eBay's own "wholesale lots" listings to find merchandise. Now, there are all kinds of stories about this method: 'I bought Product X for $25 and sold it for $200. Wow, did I make a lot of money!"
Are there true stories like this? Undoubtedly, there are. But the first question we must concern ourselves with is t-i-m-e.
Just checking this morning in eBay's wholesale sections I found the following number of wholesale auctions:
- Art: 1089
- Books: 3684
- Business & Industrial: 9144
- Cameras & Photo: 309
- Cell phones: 1758
- Clothing, Shoes & Accessories: 10460
- Collectibles: 3839
- Computers: 9441
- Consumer Electronics: 1911
- Crafts: 3174
- Dolls & Bears: 727
- DVDs & Movies: 2571
- eBay Motors Parts & Accessories: 1270
- Education and Learning: 120
- Gifts & Occasions: 1723
- Health & Beauty: 3155
- Home & Garden: 4776
- Jewelry: 13881
- Movies: 2572
- Music: 1736
- Musical Instruments: 275
- Pottery & Glass: 3845
- Sporting Goods: 1678
- Sports Cards: 36793
- Sports Memorabilia: 416009
- Toys & Hobbies: 2815
- Video Games: 1939
That's a total of 540,694 auctions for wholesale products and that doesn't begin to cover the reality of so-called 'wholesale bargains' on eBay because there are all kinds of listing mixed into regular categories, rather than separated as wholesale lots.
To make this easier, let's remove the "Sports Memorabilia: 416009" to make it a little more manageable. Let's see - that means we're left with "only" 124,685 wholesale lots for sale.
Problem #1: TIME. How long would it take you to go through all those auctions looking for something that you could profitably resell? Frankly, it boggles the mind!
Let's pick a popular category - DVD movies, one of the hottest on eBay - and do our homework to see if this can possibly be worthwhile.
Here is a popular auction offering 100 new release DVDs. There are an astonishing 59 bids, so we know this was highly popular with would-be eBay sellers.
There is a long listing of movies, many of them I've never heard of, so I chose one of my favorites, Air Force One (yep! I have a crush on Harrison Ford. :-)
According to the seller, the value of the DVDs range from $19.99 - $29.99 each.
Doing my homework on the prices Air Force One actually sold for, we find these results (auction number | sale price):
- 6379491536 | $4.90
- 6379364925 | $2.00
- 6381312346 | $2.00
- 6379125356 | $3.28
- 6380933540 | $4.50
- 6378949852 | $6.95
- 6378949852 | $7.95
- 6379535858 | $4.99
- 6378282389 | $2.76
- 6378301594 | $1.99
- 6378293163 | $2.25
- 6378266974 | $6.51
- 6379413786 | $2.24
- 6378031379 | $5.90
- 6378011445 | $2.00
- 6377930141 | $2.99
- 6379202610 | $4.99 (used)
- 6377718646 | $2.99
- 6379540333 | $6.00
- 6377421608 | $3.26
- 6377968856 | $4.76
- 6377048774 | $3.25
- 6377045435 | $4.00
That was about half the auctions listed, but the rest were all in the same price range. These 23 auctions totaled $92.46 in revenues.
Problem #2: I lost money!
I would have paid $131.10 ($5.70 each x 23) for the movies and received only $92.46 - which of course doesn't include my fees to eBay and PayPal, shipping costs from the original seller, packing materials, my time & energy, etc.
Problem #3: even if this does work occasionally, it's not the way to build a real business.
First, if you want to do more than eke out a small income, you need a steady supply of a product that you can sell again and again and again. Otherwise, you spend all your time hunting product. You will never have any auto-pilot income if you're scrounging products from day to day.
Second, your source is too uncertain. It's just like garage sales - you might find several wholesale bargains one week - and none the next. Pretty unreliable way to make a living.
Third, you are constantly creating new listings. A powerful listing that pulls in money week after week takes testing and effort over a period of time. You don't have that luxury if you have to come up with new ones constantly.
One last thought: there are some exceptions, of course, but if all these wholesale lots are such a great deal, why aren't their sellers auctioning them for themselves?
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Stay tuned next issue for Lame Idea #4.
One Last Thought
I Am Thankful
For the teenager who is complaining about doing dishes--
Because that means he is at home not on the streets.
For the taxes that I pay--
Because it means I am employed.
For the mess to clean after a party--
Because it means that I have been surrounded by friends.
For the clothes that fit a little too snug--
Because it means I have enough to eat.
For my shadow that watches me work--
Because it means I am out in the sunshine.
For a lawn that needs mowing, windows that need cleaning, and gutters that need fixing--
Because it means I have a home.
For all the complaining I hear about the government--
Because it means we have freedom of speech.
For the parking spot I find at the far end of the parking lot--
Because it means I am capable of walking and that I have been blessed with transportation.
For my huge heating bill--
Because it means I am warm.
For the lady behind me in church who sings off key--
Because it means I can hear.
For the pile of laundry and ironing--
Because it means I have clothes to wear.
For weariness and aching muscles at the end of the day--
Because it means I have been capable of working hard.
For the alarm that goes of in the early morning hours--
Because it means I am alive.
Author unknown