Prices

[amethyst1415]

Can someone explain to me why a pair of cheap novelty handcuffs goes for $5000 or a cheap plastic toy from Wal-Mart goes for $200? Does eBay not care about ridiculous prices? Plus, when it says "10 sold" you mean ten people actually paid $5000 for a pair of cheap novelty handcuffs???

[pierrelebel]

What is the listing number?

[pierrelebel]

The handcuffs sold for US$5.22

The pricing was revised yesterday to $5,555 (I suspect in error).

http://cgi.ebay.ca/ws/eBayISAPI.dll?ViewItemRevisionDetails&item=160898919286&rt=nc&_trksid=p2047675...

[moviemerchmania]

I know it is common practice among particularly Chinese sellers when inventory of a certain item is low or out and they have more inventory on the way, instead of ending the listing and paying to relist it, they simply put the price at a ridiculous price so know one will buy it. Once the inventory is in stock again they lower the price back down.
This happens all in the same listing.

[amethyst1415]

Okay. That makes sense. I found a lot of toys that are cheap at Wal-Mart for ridiculous prices. Crazy.

[femmefan1946]

Not really an answer to this question, but posters should realize that not everyone lives next door to WalMart.

Small towns, remote and isolated communities have limited retail opportunities.

Shopping online may cost "more" but not compared to a hundred mile drive to Regina or Red Deer or HappyValley/Goose Bay.

[amethyst1415]

So you are saying it is alright if I go to my Wal-Mart and buy some cheap junk and sell it for ten times the price because of people that live in remote communities? If you think it is alright to rip off people that is your deal.

[pierrelebel]

"sell it for ten times the price"

Where did you read "sell it for ten times the price"?

Simple reality here, sellers who sell as a business set their selling price for more than their purchase price.  The difference between buying and selling is your gross margin.  From that you deduct your expenses and you end up with your net profit.

Why would anyone call that a "ripoff"?

All businesses work on the same basis: they sell for more than they pay.

Margins will vary depending on the type of services or products.  At the end of the day, buyers determine what the "right price" is.  They are the one who decide on the value of the item to them.

If a buyer is willing to pay $50.00 for an item (because it is worth $50 to him), whatever cost the seller had is irrelevant.  It has nothing to do with it. 

Possibly, the seller paid $25 and is making a typical 100% retail markup (50% gross profit). 

Possibly the seller paid more and is making less. 

Possibly the seller paid a lot more and is losing money on the transaction.  It does happen to most of us: we pay more than we should, having miscalculated the marketplace.

"Profit" is not a dirty word.

[amethyst1415]

My original post.

[mater721]

"So you are saying it is alright if I go to my Wal-Mart and buy some cheap junk and sell it for ten times the price because of people that live in remote communities?"

It's called the Free-Market system. Based on supply and demand. What do you care what price some sellers are asking? If they can get a buyer for that high-priced item, good for them. If they price it too high, then likely no buyer. Of course this is really a tangent on your original posting. But... you asked...