Tag Archive for margin

Add value and increase selling price

Years ago, I sold used printers on Ebay and printing supplies on my own website.  At the time, the used printer market was very competitive.  One way I set my listings apart from everyone else was I added value without increasing my costs.  Here’s what I did:

Since I was selling related products — ink cartridges, toner cartridges, photo paper, etc., I had a vested interest in turning one-time used printer sales into repeat supply customers.

I created a “Frequent Buyer Program.”  On my website, I sold a membership for a one-time fee of $9.95.  From that point forward, members would receive a discount on their ink and toner orders.  The discount got bigger as the orders got bigger.  My members wanted to get on the positive side of that deal as soon as they could to reap the benefits of saving in the future.

I offered this membership for free on all used printer purchases on Ebay.  I automatically added $10 of value to the printer without adding any cost to me.  Many of the printers I sold went for $30 to $50 dollars.  On a $30 printer, that extra $10 of value was essentially a 33% bonus.

What can you do to increase your value to your buyers?

Margin will make you or break you

Buy low, sell high, right?  The only way to make money in business is to bring in more then goes out.

Before you decide to sell something, you need to figure out whether you can make money on it or not.  How much did the product cost to acquire?  How much will it cost to ship?  How much will it cost to package it?  How long will it take to write the listing, take pictures, and drop it in the mail?

You may not know all of this from the start, but pay attention and make sure you’re not spending so much time that you’re earning 12 cents per hour.  You’re worth more than that.

Choose your items wisely and make sure you can earn what you’re worth.