Price undercutting?

[chesapeakevariety]

What's with the sudden outbreak of price undercutting lately? I must have at least a dozen books where my price is $15-$20 or higher, yet someone has come in (often multiple sellers) with their copy at some ridiculous price like $5. For the most part its mostly different sellers, although I have noticed one in particular that seems to make it a habit. It's a problem I've always dealt with in the 8 years or so that I've been a bookseller, but right now its about the worst I've ever seen it. Maybe it's larger sellers who sell in such volume that they don't care about profit margins as much? Regardless, it's incredibly agitating.

[marraloo]

I believe your hunch about this being large sellers who can afford to undercut prices.  I am sure it is incredibly frustrating for the smaller seller.  And I have no idea at all about how to combat this.  In retail, it will probably always be thus.  Have you noticed that Wal Mart sells bread, milk, etc at lower prices than your down-the-street mom-and-pop store? Some of those little businesses only survive because they are convenient to the after-work, pickup essentials for dinner shopper who does not want to park a mile away and walk through the entire stadium that is Wal Mart just to get one or two things.  

[chesapeakevariety]

I see what your saying, but it's not like I can go to Wal-Mart and buy a loaf of bread for 80% less than at the grocery store. With these undercutters, their chopping 50, 60, 70, and yes, even 80 percent off the price of a book. The point of selling is to make money, and I would think that even the bigger guys who get their books for free or dirt cheap, would want to make as much money as they can. Forget about hruting other sellers, why cut YOURSELF short? 

[billydurham]

Because they are * Dont Wanters*

They are People who have somthing and they dont want it

They will give it away 

That is what they call them in Real Estate

They have a House worth $100,000

And can sell it for that

They Dont Want it

So they sell the $100,000 House for $1000.00 just to be rid of it

The other Person Buys it at $1000.00 and then THEY sell it for $100,000 🙂

Funny Huh ?

[chesapeakevariety]

Yes but the problem in this environment is tht before you know it you have 20 other sellers follwoing suit and the value of the item never recovers. The house remains worth $100,000. 

[bill11223]

Fundemental economics. As a result of competition merchandise will reach it's true value.

[anonymoose99]

---

@middleriverbooks wrote:

Yes but the problem in this environment is tht before you know it you have 20 other sellers follwoing suit and the value of the item never recovers. 

---

And a new value is set for the item. That's how supply/demand works. If your $20 book isn't being bought, it's because there are more sellers than buyers.

[thecityloft]

Price undercutting for body jewelry is a problem, too.  I had a brick and mortar store that I recently closed.  We sold a large vareity of items including body jewelry, which I decided to sell online.  Between China and large volume USA sellers, it is nearly impossible to get a decent price.  Discounts are one thing, but "dumping" is quite another.  I know how much it costs to purchase wholesale, what it sells for on the ground, the cost to ship with insurance, and the Ebay and PayPal fees..

A 1 ounce piece of 1st Class Mail with Insurance is $4.03 for an item that sells for $12.99.  I don't understand how sellers can offer free shipping on top of huge discounts and dumping prices!  Shipping is shipping.  it is expensive and just went up!  How is it that so many ebay sellers can offer it for free?  

Like the original writer states, 80% discounts all the time are not offered on the ground -- not even Walmart.  An 80% discount is a garage sale! 

[anonymoose99]

---

@thecityloft wrote:

A 1 ounce piece of 1st Class Mail with Insurance is $4.03 for an item that sells for $12.99.  I don't understand how sellers can offer free shipping on top of huge discounts and dumping prices!  Shipping is shipping.  it is expensive and just went up!  How is it that so many ebay sellers can offer it for free? 

---

Insurance for a $12.99 item??? Seriously? You may as well set your money on fire.

First Class package up to 3 ounces is $1.93. Unless your loss/damage from shipping is outrageously high, just take a buck from each sale and put it in an "insurance jar" and cover your own losses.

[flossiepotts2013]

Are you books new or used?

[vladimiracle]

One problem is the GREEN BUTTON redesign of the results page.

Megas get books handed to them, charitable donations.  And they pay 1/3 less postage than we small seller -- with Media Mail.

We're competative with Priority Mail, but HDC has made it difficult for a buyer in a hurry to find the folks who will ship priority.

Anyhow -- I'm finding 2/3 my HDC sales are to the same 3 buyers -- drop shipped to 3rd parties.  I'm listing and selling more elsewhere, and the trend continues.  Lowballs there too.  And a results listing that does not distintuish by condition grade of used books, so the library book resellers pretty much own PAGE 1.  Not to mention they own the Buy Box and it's jharder now to find what ain't in the Buy Box.  So that other place is as frustrating as HDC.  I don't know how to get out from under the unfair advantages given the megas.

Getting rid of the GREEN BUTTON results page at HDC would be a nice start.

[sitisasitis]

Folks who think I am leaving money on the table are likely those greedy people who can't see past the blindness their selfish behaviour creates.

Same people who can't live below the means their $500,000 / year lifestyle demands.

Same ones, it goes way past the don't wanters, we are the have nots and we are here to take away from those who have too much.

[sitisasitis]

When you have everything, the biggest profit is nowhere near enough.

Makes me sick, these folks driving their spank Mercedes, complaining about hard times.

But when you have nothing, the smallest profit is more than what you have.

These are the folks who appreciate the gifts we are receiving.

Lot of folks out there, got nothing left to lose.

[easyintheislands]

Here is how it works:

Someone starts a "non-profit" company. All non-profit means is that there is no money left over after expenses, which may very well include big salaries and high rolling expenses. Make this company "charitable", and they get the non-profit halo from the gullible. It doesn't matter how much goes to charity, quite often just pennies on the dollar. In the book business, Friends Of The Library organizations are contacted by these faux charaties and offered boxes delivered and picked up full with the books left after a sale. For this they get paid a few cents per pound but hey, the books are gone, and of course it helps the less fortunate (yeah-right). Often, The Friends don't even get paid their pennies promptly. Now the books appear here at vastly discounted prices. Want a few examples?

betterworldbooks

thriftbooks

[odds*n*olds]

Many book sellers use computer programs (or pricing services) that change the price as needed so their book is always the lowest.