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Unprofitable salesmen

Hey Ebay! I ran across some disturbing news today talking to a Wholesaler. Straight to the point, she told me they and alot of Wholesalers aren't dealing with Ebay sellers any more. They say we undercut each other so much to the point that items are becoming unprofitable.  This was a Wholesaler i dealt with for a long time from when I started my website. 

Now there was occasions where I've seen prices so low that I know there was no profit made. The item basically was sold for was they bought it for. IJS....i agree with the wholesaler.

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Re: Unprofitable salesmen

It's called a free market economy.
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Re: Unprofitable salesmen


@royal_blue_angel01wrote:

Now there was occasions where I've seen prices so low that I know there was no profit made. The item basically was sold for was they bought it for. 


How do you know what they bought it for? 

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Re: Unprofitable salesmen

With all do respect...why would the Wholesaler care what kind of profit a seller is making. They're getting paid for the item, if the seller wants to make 1 cent or $100, it has no effect on the wholesaler. 

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Re: Unprofitable salesmen


@findersltdwrote:

With all do respect...why would the Wholesaler care what kind of profit a seller is making. They're getting paid for the item, if the seller wants to make 1 cent or $100, it has no effect on the wholesaler. 


Well, if eBay sellers drive the retail price of the goods into the basement, then sellers everywhere cannot make any profit buying the stuff, and the Wholesaler can't sell the stuff to anyone anymore.  It's the same reason certain manufacturers have MAP (Minimum Allowable Price) rules for their clients. 

The Floggings Will Continue Until Morale Improves.
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Re: Unprofitable salesmen

I have a different take on this. I'm sure some of us have different definitions of a wholesale.  

 

I'm not a wholesaler, I'm a manufacturer.  I do have wholesale accounts. Those are companies  I call dealers. Dealers are people who, through previous contractual arrangements are given the right to sell my products.   To do so means dealers agree to the terms and conditions I, as the manufacturer establish. 

 

Some of those terms have to do with a dealer's credit worthiness, time in business being a dealer selling compatible products, not competitors products, maintaining a certain amount of inventory of my products and well as a certain amount of inventory  of the compatible products, minimum reorder quantities for discounted shipping charges, a possible surcharge for having to get one or two items delivered to an airport for shipping to a dealer or drop ship location the same day,  a verified level of expertise, knowledge and success in the field and several other terms and conditions as may be considered standard practice in a particular industry.

 

Most  manufacturers require a minimum initial inventory order to become dealers. And on and on.

 

So, if you consider you're business on eBay to be worthy of wholesale status, you may seek to become a dealer for that product or products.

 

However, if the thrust of your eBay business is selling dishes an nick-knacks you picked up at yard sales and you think your entitled to discount on my aviation products, you aren't going get any consideration from me since I don't want you cutting into my sales  or the sales my dealers and more importantly, misrepresenting my products.

 

 

"Fly the Big Ones"
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Re: Unprofitable salesmen

Thank you Ted my point exactly.

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Re: Unprofitable salesmen


@ted_200wrote:
Well, if eBay sellers drive the retail price of the goods into the basement, then sellers everywhere cannot make any profit buying the stuff, and the Wholesaler can't sell the stuff to anyone anymore.   

The people selling it on eBay cannot drive the price into the basement unless they have a place to buy it from. 

 

If the price drops, the item is more affordable. If the item is more affordable, more people will buy it and the wholesaler will move more product, not less. 

 

If the wholesaler is refusing to supply eBay sellers, then the wholesaler is likely trying to protect his bigger clients - and may have a contract with them. 

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Re: Unprofitable salesmen

It is also possible that the wholesaler has his own anonymous eBay presence, and does not want other people competing with him. 

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Re: Unprofitable salesmen

it's the old commerce chain. No link in the chain will allow other links to earn more.  Otherwise they will move into that part of the business chain. That is why for example Amazon has been moving into warehousing and transportation and last mile delivery. They want the entire chain.

 

 

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Re: Unprofitable salesmen

I have several wholesalers I use at different times, and not 1 has ever asked me where I sell my product.

They don't care, they sell at their price and make a profit. They don't care what we do with it, or who we are in competition with. We could set it on fire for all they care. 

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Re: Unprofitable salesmen


@jasgib_0wrote:
It's called a free market economy.

It's also known as "Race to the Bottom" on eBay.

 

 

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Re: Unprofitable salesmen


@findersltdwrote:

With all do respect...why would the Wholesaler care what kind of profit a seller is making. They're getting paid for the item, if the seller wants to make 1 cent or $100, it has no effect on the wholesaler. 


It destroys the profitability of their product line. If their sellers are selling the items at close to wholesale prices, then their other buyers will not select that item to buy unless the wholesaler gives them a better price discount. 

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Re: Unprofitable salesmen


@timemachine777wrote:

@findersltdwrote:

With all do respect...why would the Wholesaler care what kind of profit a seller is making. They're getting paid for the item, if the seller wants to make 1 cent or $100, it has no effect on the wholesaler. 


It destroys the profitability of their product line. If their sellers are selling the items at close to wholesale prices, then their other buyers will not select that item to buy unless the wholesaler gives them a better price discount. 


If an item is selling on eBay at a rock bottom price, then whoever is selling at that price is still buying it from the wholesaler and will get all the sales becuas ehe has the lowest price. 

 

And if that seller stops buying it from the wholesaler, then there is no one selling at a rock bottom price any more and other sellers will start buying from the wholesaler again. 

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Re: Unprofitable salesmen

There are plenty of wholesalers who simply refuse to sell to anyone who doesn't have a B&M presence (ie won't sell to those who only sell online).

"If a product doesn't sell, raise the price" - Reese Palley
"If it sold FAST, it was priced too low" - also Reese Palley
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