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Sunday, March 12, 2023

Profit Margin Perplexation

An odd post title - let me explain. I had a buyer inquire about a cut sewing pattern I had listed for sale on eBay. When I first started listing patterns that were cut, I didn't note at what size. Patterns can be multiple sizes in one packet, say size 6 to size 12. This particular child's dress pattern was cut at size 7.  

I offered to sell the buyer a new uncut pattern and would have sold it for $8 + shipping. I have calculated that $8 is the lowest price I would normally go to make a profit. 

The buyer messaged back that she had found the pattern at $6.95 + free shipping. 

Sure, I would take that - it is a good deal. Postage for a pattern averages $4.00. Let's say the buyer paid $1 for that pattern, now we are at $5.00 cost to seller. Seller has now made $1.95 profit, but wait! We haven't deducted all of the costs of operation in running a business. 

If a lowball offer comes in on a pattern, I will accept without countering. Any bite on inventory is better than no bites at all. Any product I list going forward will be no lower than $8. 

Sequeing to sewing pattern of the day. This 1954 is one of the cut patterns I have priced at $8.

After holding back the reins on my thrift shop purchasing for awhile, I was finally let loose to visit the 4 in my vicinity. I spent $60 for the total shopping day of mainly books, some fabric, and sewing patterns. One thrift shop routinely sets out free items on a cart out front, I brought home an armload of quilting magazines. Along with those magazines were three needlework patterns - now listed in eBay. Thank you đź’śChristmas sells year around. Freebies to inventory mean higher profit margins! Post update - this pattern sold next day.

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