The Wholesale Forums

[jaffaboy]

Hi there am new member to this forum and just recently started out in business and the wholesale game , just looking for a bit of advise please from experienced members.Have considered started to sell cpu processors among other pc components on ebay shop.A powerseller sells them for 199 pounds buy it now for exact same processor , if i sold them for same price been offered i would make 30 % profit on each one for price i purchase for.Is this a good margin for this kind of product? .Your opinions would be appreciated?

[HaRdy SiNgH]

Its a good margin gives you a balance to make a decent amount of profit, if a highly profitable item you can sell many of them quickly, however with computer related components they change frequently so you need to be up to date. 30% sounds like a good margin to me, although as others will tell you there are others products out there with higher ones.

My advise would be to test the water sell them, document how they go, if well. And go from there, if your making money and its a profit, its a good thing right ? once you build up your reputation and profits im sure you can buy in larger quanitites and increase your margins, but 30% margin to start with is good.

[D M]

A good profi t marging gives you a smiel on your face.

[greedyboy]

Remember the PowerSeller will often have VAT included in the price. But that's another story.

Always work your margins backwards. On 30% you would need to sell £50.000 a year to make just £15,000 gross per year. If you can sell £75,000 a year you will make the average UK annual wage (before costs).

[consultant]

Any positive margin is good!

[Andy777]

I would say 20% to 30% is a very good profit margin on eBay. Hopefully you counted eBay & PayPal fees when calculated that amount?

[Tango34uk]

When I started my first business, I was told by the bank that they would only be happy if I made a profit of 27.5% and above! But that was 10 ish years ago.

Now I make around 50-75%

[jaffaboy]

just to confirm i would make 50% margin if sold same price as powerseller i quoted , but considering maybe selling bit cheaper than him would reduce my margin slightly , would anyone recommend this?

[boyscrapper]

well you always try to be cheaper than your rivals, how ever don't go too cheap as it digs into the profit margin. Try a few out first and see what price works best. Remember aswell that there are different ways you can list them, try free postage with a higher price as this is something unique that your rival doesnt have and might draw in the customer!

[PT]

There is no real answer to your original question. It all depends on how you value your time and whether the 30% margin is, in your mind, worthwhile. That's all that matters. Don't forget to research the quantity that you can sell, too.

As for making your price lower than the other seller, is there any need to? People are, presumably, happy paying what he charges. So theres no reason why they wouldn't pay that when buying from you either. Not all buyers are driven by price. Better images, listings, listing promotions, feedback, will all aid in 'stealing sales'.