When purchasing books for resale pricing is very important.
Recently I went on a trip to find some new sourcesof books. I don't like to visit my sources too often because I tend to see less stock potential if I visit more than twice per month.
My usual sources, thrift stores and libraries have good value books at very competative prices. My average purchase price is just over $1.00 per item.
This last weekend I moved my region of search to the Central California coast. I had little expectations of finding deeply discounted bargains there. Sadly I was not in for a shock.
Book prices there were in the region of $4.00 per hardback and $2.00 for a paper back. Tough pricing means less chance of a long shot purchase.
A long shot purchase is a book of marginal interest that I decide to risk a dollar on. At four dollars a book I am very risk averse if my profit may only be $1.00/
I did come away from the coast with fofty books. for $100 so I aveaged $2 per book, many of these were made up of hardbacks from a store which had a half price sale on Saturday. Normal prices reduced from $4.70 per book.
Contrast that to a trip on Superbowl weekend to thrift store just forty miles inland from the coast at which I bought 60 books for $83.48. All of equal quality, at least Used Very Good if not Used Like New.
This weekend's trip will need to see some higher pricing to maintain margins.
Remember if you figure 33% of your sale cost will probably be taken up in FBA fees, Amazon partnered shipping will cost about another 33% Leaving you with about 33% to cover costs and profit.
Since this business makes you think in terms of averages it is safer to look at the overall selling prices. All of those books bought this week end need to sell at $6.00 or more.
50x6.00=$300.00
$100 each to UPS and me for transport, $100 to Amazon for fees and commissions, $100 to me to just retain cost of items.
Of course I plan to sell some items for $7 or $8, a couple of the best items may sell for up to $30 but if I had bought them at a lower price I would have had much more leeway to sell at lower prices at the same margins.
Recently I went on a trip to find some new sourcesof books. I don't like to visit my sources too often because I tend to see less stock potential if I visit more than twice per month.
My usual sources, thrift stores and libraries have good value books at very competative prices. My average purchase price is just over $1.00 per item.
This last weekend I moved my region of search to the Central California coast. I had little expectations of finding deeply discounted bargains there. Sadly I was not in for a shock.
Book prices there were in the region of $4.00 per hardback and $2.00 for a paper back. Tough pricing means less chance of a long shot purchase.
A long shot purchase is a book of marginal interest that I decide to risk a dollar on. At four dollars a book I am very risk averse if my profit may only be $1.00/
I did come away from the coast with fofty books. for $100 so I aveaged $2 per book, many of these were made up of hardbacks from a store which had a half price sale on Saturday. Normal prices reduced from $4.70 per book.
Contrast that to a trip on Superbowl weekend to thrift store just forty miles inland from the coast at which I bought 60 books for $83.48. All of equal quality, at least Used Very Good if not Used Like New.
This weekend's trip will need to see some higher pricing to maintain margins.
Remember if you figure 33% of your sale cost will probably be taken up in FBA fees, Amazon partnered shipping will cost about another 33% Leaving you with about 33% to cover costs and profit.
Since this business makes you think in terms of averages it is safer to look at the overall selling prices. All of those books bought this week end need to sell at $6.00 or more.
50x6.00=$300.00
$100 each to UPS and me for transport, $100 to Amazon for fees and commissions, $100 to me to just retain cost of items.
Of course I plan to sell some items for $7 or $8, a couple of the best items may sell for up to $30 but if I had bought them at a lower price I would have had much more leeway to sell at lower prices at the same margins.
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