Has Anyone Calculated What You Make Per/Hr.?

[intertradelink]

Hi:
I am on the brink of throwing in the towel with this Ebay business. When I calculate how many hours I work on Ebay ( particularly the endless hours searching for new product), then divide that into the actual PROFIT I make, it just doesn't seem to make sense.
I'd like to know how others feel about this? Has anyone done this calculation?
Thanks,
Al

[shooger]

I have no idea what I make her hour, but I know that it's less this year than last due to:

a) Canada Post up
b) my product price up
c) Canadian dollar up
d) eBay fees up

If PayPal fees go up soon, we'll be set!

[laplaya29]

I dont think you want to know what your hourly rate is. Look at it this way, what would you be doing if you were not doing e-bay, can you make more money or do you need more money, then you better go find that. You forgot to calculate in your packaging supplies, tape, paper, bubble envelopes, boxes. How about your time driving to the post office and standing in line, how about your time at the garage sales or where ever you get your items. I look at it this way, if I make a dollar, then its a dollar I did not have, or would not have if I was not on e-bay.
Bill.

[whoscloset]

I'm with you Bill, if I actually took the time to figure out my hourly rate I'd probably be crying over all the time, money and effort I spent getting a University degree just to end up selling on eBay. LOL

I keep smiling by factoring in the intangibles, such as being able to pick up my kids from the school bus every day.

Monique

[llee2]

Shooger,

Think you jinxed us with that Paypal comment. Paypal is changing the merchant rate thresholds for Canadians. To maintain the merchant rate of 2.2% + 0.30USD you will have to have sales between $12000-$125000 CAD per month. Goes into effect Aug 6th. $3000-$12000 per month (CAD) gets 2.5%+0.30 USD. Less than $3000 per month gets you the current standard rate =(

Quit tempting the fates will ya?!

Just kidding, but not happy...
Lincoln

[shooger]

I know... I just started a new thread about this. 😞

[shoplineca]

Running an eBay business is like running any other business. The only difference is not everyone selling on eBay are selling to make a living.

If you sell on eBay as a hobby or to bring in a little cash flow then calculating how much you get per hour is of no consequence.

Some people like to shop at yard sales and auctions. Buying one or two extra items to sell on eBay while they are there picking up things for their own home gives them a little extra cash to buy those things for their place.

For some, as shooger recently pointed out, sell items that they are involved in as a hobby so he is able to get those extra collector's cards and pay for his hobby and a few 'extras' around the house. It is never meant to provide an income for a family to live off of or depend upon.

For others, it is a means to sell additional product lines that may not be selling through their retail store so the hours are calculated against total sales and not just eBay sales.

If you are selling on eBay as a business, then set up your operation like a business with a business plan and a budget and a costing system that keeps track of each of your items so you know where you are making money or loosing money and adjust accordingly.

As a business, time is something that should be factored in, however I would never factor in time spent in these chat rooms/discussion forums as time running my business, this is more social or educational.

Malcolm

[www-labels4less-com]

The way I see it is how much per hour would I be making off ebay if I were NOT listing anything.

[spidermanuj]

Hi Malcolm

Do you have such a system which calculates costs and profits? I am in the process of developing one such system but it will take at least 1-2 months to develop that complex a system doing it part time.
If there is some thing already available - that will certainly help me get started today.

Thanks
Manuj

[shoplineca]

Manuj
There are several commercially available software programs that will provide good costing systems.

You have 2 ways of approaching this. One way is very detailed and will require the use of a commercially purchased software program. That would be a Job Costing system which will take specific costs for each item you sell and tell you your actual cost at the end.

What you really need however is to simply determine what your standard cost is, assuming that you use the same amount of energy and time for everything you sell.

This is simply where you are Standardizing some of your overhead costs to be factored into the final unit cost of what you have sold.

Those costs would include your operating expenses such as rent, labour (time spent buying, selling, doing acctg, packing etc), phones, internet etc.

A standard cost will be developed and applied to everything that you sell. So if what you are selling cost you $10 to purchase, you apply your standard cost to it of $1.10(or whatever your cost is) and then add your eBay and PayPal fees and you will have your cost for what you have sold.

Alot simpler and no need to get into the the detail of a more complicated system.

Check out the library for books on Managerial Accounting and you can probably develop your standardized costs in a couple of hours.

Malcolm

[spidermanuj]

Malcolm

I know what you mean - but my setup is quite different because I get items shipped from India and now UK and I have a good stock here in Canada. Each item's basic cost is almost the same but due to differences in duties, shipping charges and other expenses each lot's final cost is very different.
I guess I will continue my effort to develop a custom system and may be I can share it with my fellow Canadian PW 🙂

Manuj

[shoplineca]

Manuj
Any accounting software that has a costing system will handle what you want it to do. You can still factor in your fixed or standarized costs (for you operating expenses) and then treat each "lot" of your invetory as a separate inventory item adjusting its costs according to the extra costs each 'lot' incurs when imported.

You can also elect to handle foreign exchange profits and losses outside of the item cost and reflect your wins or losses for exchange differences as a treasury function.

Personally I would simply add the exchange and non-refundable duties and taxes to the unit cost and then add my standardized cost. After you sell the item, you know exactly the profit you made on the unit you sold.

Malcolm

[shooger]

I believe I make somewhere between fourteen cents and eighteen cents an hour. If I work without a break for 16 hours every day, I'll have enough to buy a 2044 Honda Civic (assuming they don't become luxury cars by then).