How to set up buy 3 get 1 free?

[sellwithtrust]

Hi , 

I wonder How to set up buy 3 get 1 free? is it only i have to get the Store subscription to enable this functions?

Thanks

[downunder-61]

@bigdeals.etc 

You can point out some of the pitfalls as well LOL

[richard1rst]

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@sellwithtrust wrote:

Hi , 

I wonder How to set up buy 3 get 1 free? is it only i have to get the Store subscription to enable this functions?

Thanks

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I don’t mean to get all wonky on you but have you thought this through?

There is an old joke in the hardware business “I lose $2 on every hammer I sell but I make it up in volume”. Clearly the logical mind sees the fallacy in that.

Sell 3 get 1 free:  So you have to spend the money to buy 4 and you only get the sales money for 3. Right off the bat you are giving up 25%. After you pay you cost of inventory, plus the listing and FVF and shipping fees are you really making any money?

There is an initial lesson on our sales and marketing class. Obviously the truth of the statement depends on your mark up. For the purpose of this example we assume a 100% markup. Buy it for $10, sell it for $20.

If you discount your selling price by 10% you have to increase your total sales by approximately 133% just to make the SAME amount of money you were making before the discount. So a whole lot of extra work for no more extra money. And you are offering a 25% discount.

Think carefully

[jayjaspersgarage]

You're less than 30 minutes from me.  Your sales are fantastic.  Do you need some kind of license to sell vitamins and/or food supplements?  I have no idea but was curious.  

With the volume of sales you have it would make sense to at least have a Starter store.  

[m60driver]

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@richard1rst wrote:

There is an initial lesson on our sales and marketing class. Obviously the truth of the statement depends on your mark up. For the purpose of this example we assume a 100% markup. Buy it for $10, sell it for $20.

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Not to get too geeky but it is important to understand, and far more useful, that in retail, if you purchase an item for $10 and sell it for $20 then you have sold the item for a 50% gross profit margin.  That is your gross profit is 50% of the sales price but does not include any expenses such as your fees, shipping supplies, etc.  You can buy a gross profit margin wheel cheap enough at most office supply stores or online for a few bucks.  They are an incredibly useful tool of the trade.

[bigdeals.etc]

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@downunder-61 wrote:

@bigdeals.etc 

You can point out some of the pitfalls as well LOL

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Plenty. Tons of damage control and false SNADs o’ plenty. If found out that a significant amount of buyers don’t understand how that deal works. Some think they buy 3 total and one of the three is free (the third item is free). Some don’t know how to add four items to their cart. Some just buy three and expect you to read their minds on sending the correct variation/size/color as their free one. Some buy three and demand you send one of your out of stock (or a variation you don’t even carry) as their free one.

Not sure if they do this now or sometimes, but in the pricing at checkout eBay never shows the 4th item as free. They’ll either mark all four items down by 25% (this totally confuses the buyer often complaining that they are not getting the discount when they actually are), or it’ll show all four at full price and there’s a separate line item labeled “Discounts” that show the price of one item (which also confuses buyers because they don’t pay attention to that line thinking they paid full price). I’ve brought this up to eBay and they say “you can’t cater to all or avoid dumb buyers.” SNADs can come from these buyers too.

Then there’s returns. eBay allows the buyer to return one unit and still keep the prorated discount. For example, if you have an item (priced at $10/ea) and a buy 1 get 1 free… essentially it’s 50% off but you have to buy two. If a buyer does that, they are allowed to return one item and the refund amount you’d have to give for that item is $5. So ultimately the buyer just got one item at 50%. This is a loophole in the system.

I haven’t tried it yet, but maybe the price tiers are better. For example, $10 each and $7.50 if you buy 4 or more.

[richard1rst]

I am not sure what your issue is.

A "100% mark up" and a "50% margin" are exactly the same thing.

100% mark up is the equivalent of "I am selling it for twice what i paid for it".

50% margin is the equivalent of "my profit is one half of my sales price"

Tomato - TomaHto - they mean the same thing.;