eBay Economics 101

[dwRavenstar]

Ok I'm paying attention; enlighten me.

Yesterday I scored five LBF Trinity Covered Hoppers for roughly $80. The LBF website lists the cost for a six pack of this same item as just over $200, explained as a dealers' wholesale cost with the subsequent option of selling the units separately.

The question is this: How did the seller of the five I'd purchased get them at a low enough price to make this discount economically feasible? How do I get in the line that has access to these prices directly from the manufacturer?

I'm supposing the items that find their way to the eBay flea market are factory seconds or are the result of a production floor over run of some sort. Am I thinking along the right lines?

Dave (dwRavenstar)

[SpaceMouse]

If the person is a dealer he might just have gotten too many for Christmas and was stuck. He offered them and then didn't get the response he wanted. Happens. I listed a $2000 radio frequency bar code scanner once and started the bidding at $50. Sold it for $50.

[Jetrock]

The whole idea of eBay was to provide a "garage sale" site. I haven't been to too many garage sales where the folks insisted on charging MSRP for their items--either they were used items, or things that they bought full-price and never used and now just want to get rid of.

Heck, personally I don't see the point of using eBay to purchase new items at their retail cost--I might as well go buy it in a brick-and-mortar store.

[jfugate]

If the stuff is just sitting around and of no use to you, any amount of cash may be worth it to you, even it it's a loss.

Obviously, you can't do that with everything, but it it's just taking up space, any amount of cash may be more valuable to you, and ebay's great for that sort of thing.

So good deals do still exist on ebay if you are patient.

[Anonymous]

Yard sales are pretty common in my town. People clean out the closet and probably gross about 10 bucks. The same merchandise probably retails for over $100 at the mall. What they try to do is get the closet cleaned out and perhaps save some one who needs or wants the item some money.

[Javern]

THANKS for the scanner SpaceMouse ! [:D][:D][:D]

[Anonymous]

hi

[Anonymous]

hi again

[Anonymous]

hi again

[Anonymous]

csxguy that is kind of spamming. This forum takes a few seconds to update the server.. It does not work fast enough to be a live chat.

[dwRavenstar]

I fully understand and have, in the past, exploited the opportunity presented by the one man's trash is another's treasure mindset of the Great American Fleamarket.

SpaceMouse presents a valid point, that of the Christmas overstocking but after an afternoon of track laying and wandering thoughts I've come to understand that my real question is that of how one would qualify for major discounts from the manufacturers. Some of the outfits I have been looking at have a huge bissle of stock available and the proprosed prices nearly put me in the same position of Pavlov's pup. Some on the other hand give me the same reaction as some of the posts in this forum when I see their prices are a full 20% higher than the reputable discount sources, a shake of the head and a muted "oh gawd". (hi csx)

I'm not searching for the answer to this 'cause I'm wanting to get into the business, I'm just curious about the workings of the supply system that provides the raw materials for our hobby.

Thanks
Dave

[Anonymous]

I have over 500 transactions on eBay and sometimes it still mystifies me. Some stuff is obviously laying around somewhere and the seller is just trying to turn a buck ala yard sales. OTOH, I have bought brand new articles there that are so cheap I don't think even a distributor could turn a profit. A couple of years ago I bought a set of NIB (new in box) MOMO custom rims for my sons car. Officially they weren't even on the market yet and I got them for 65% off retail. I mentioned this to a friend of mine that owns a rim and tire shop and he said that there was no way he could get them that cheap. Also, he didn't blame me one bit for buying them on eBay at that price.

So as far as "How do they do it?". I haven't the faintest idea short of them heisting an 18-wheeler full of the stuff.

Karl

[Anonymous]

QUOTE: Originally posted by HighIron2003ar

csxguy that is kind of spamming. This forum takes a few seconds to update the server.. It does not work fast enough to be a live chat.

He's the same guy clogging up this forum with all the polls - in one message he states he's only done 10 polls. Maybe the moderator should be contacted to rein him in?

Go play somewhere else!

Bob Boudreau

[Anonymous]

+What percentage of e-bay sales are of HOT merchandise???

[Anonymous]

QUOTE: Originally posted by 759844

+What percentage of e-bay sales are of HOT merchandise???

Well. I made a comment recently when the Marklin was broken into and robbed that we should keep an eye on ebay in case they try to sell it off there... aboslute silence resulted. I guess it is a taboo subject.. talking about HOT merchandise on ebay.

[Anonymous]

I use Ebay to find bargains, and believe me, it is getting harder and harder. I don't have a LHS available that actually has anything I need when I need it, so I do 99% on the internet. Sometimes Ebay, sometimes online discounters.

Usually I shop online stores for items that I want until I find the lowest price. Then I will watch Ebay and see if I can get the same item for less. If I can, then I use Ebay, otherwise it is the discounter.

Sometimes I will buy used items, if they suit my needs and are in a condition acceptable to me. I always ask if there are any missing or broken parts, paint condition, etc. Every seller I have asked that answered have been honest in their representation thus far. If a seller does not answer, I will not bid, period.

I also have sold numerous items that no longer fit my era or theme and I make sure to describe any slight flaws and will answer all replys and furnish additional photos if requested. To me honesty is the best policy, and so far I have gotten excellent deals and made satisfactory sales.

[Bikerdad]

The "chaotic destruction/reconstruction" that characterizes our economic system can account for some of the disparate pricing you'll see on E-bay. A vendor going out of business liquidates his stock on Ebay. A vendor in urgent need of capital for some other project does the same. A manufacturer gives a special sweetheart deal to a single vendor in appreciation for a big buy, which the vendor then turns around and sells on Ebay. Then there is stolen merchandise, overstocks, and damaged merchandise, some of which may simply be the shipping container only. Rather than going through the hassle and expense of working through the entire box, the shipper simply pays the claim, and turns around through their own channels liquidating the good stuff. This is similar to an insurance company parting out a "totalled" vehicle.

[dwRavenstar]

Thanks Bikerdad, that all makes perfect sense.

759844 asked what percentage of eBay stuff was hot and brought from my memory that I'd seen an article recently that some folks were selling the credit slips they'd gotten for shoplifted items from stores on Ebay.

Guess there's people out there who can find a way to ***ize and exploit any system.

Dave (dwRavenstar)

[joecool1212]

When I started on e-bay a few years ago I found more deals than I do today. I find the good deals are still there but you have to look much harder and longer. I saw a new in the box BLI SD40 in CSX paint with a buy it now of $165.00. Had to look at at least 20 for list price first. To bad I paid $210.00 At a train show. Got a HO Atlas SD80 new in the box for $50.00 with shipping on e-bay but looked for almost a year for that one. Everyone nust have been sleeping when that one was listed. But now when I want something I keep looking for that good deal on e-bay for probally to long. Joe A.