One of the best sources for good deals is when someone is given a gift that they don't want.
An example is when a Christmas party at work has a prize that you win, an Iphone, and you and your spouse already have one. You “want” the gift in general, but you don't need it so you want the money instead.
How can you benefit from this dynamic circumstance?
Well, people with these extra items post them for sale on classified ad sites. The data source used for this analysis is taken from the http://www.nearbyitems.com website:
8,027 have the word “Christmas” in them, but this can be from ads that are indicating that they make good Christmas gifts. So to weed those out, use different combinations of terms.
2,368 have the phrase "for Christmas", as in “I got this for Christmas but I don't need it”.
The reasons given are:
419 gift from work,
60 already had one
32 gift from father/mother/buddy/brother/sister/friend
18 can't return it
17 replaced old one
When people post these items for sale, they pick a price about 10-20% below the brand-new cost. But they are willing to take MUCH less. If you are a buyer, try offering just below half the new cost, and be willing to negotiate up to just over half. High demand items may have to be closer to the new price.
If you are looking for good deals of new items at used prices, check the classified ad websites after the holidays and ...
Happy Posting.
About Me
Monday, December 28, 2009
Tuesday, December 22, 2009
Whole Product Solution
I almost moved this blog to a new website because readers want to be emailed when a new post is posted. Before moving, I'm trying out this widget on the upper right for subscribing. Please use that rather than the "Follow" feature provided before.
The need for this for me, as a customer, is expected and should be supplied by the folks at blogspot.com. Since it isn't, I had to use a 3rd party, feedburner.com, to provide it. That means that blogspot.com doesn't provide a whole product solution. The customer must cobble together their own solution. We, as customers, long for a whole product solution in all the areas of our lives. Successful entrepreneurs do their best to make this as easy as possible in their business.
Thanks and Happy Posting.
The need for this for me, as a customer, is expected and should be supplied by the folks at blogspot.com. Since it isn't, I had to use a 3rd party, feedburner.com, to provide it. That means that blogspot.com doesn't provide a whole product solution. The customer must cobble together their own solution. We, as customers, long for a whole product solution in all the areas of our lives. Successful entrepreneurs do their best to make this as easy as possible in their business.
Thanks and Happy Posting.
Monday, December 21, 2009
The “New” Discretionary Spending
The "New" Discretionary Spending
Where once, we as a nation bought things as soon as we thought of them, now, not so much. We are learning to be frugal. To be accurate, we are being forced to be frugal.
What was purchased during the time-of-plenty? Everything.
Now as unemployment creeps up, and as debt is being reduced, unneeded items are being sold. How can we tell how many discretionary items are up for sale? By searching http://www.nearbyitems.com/ for the following terms and looking at how many occurrences there are.
On the morning of December 21, 2009, out of 136, 979 total items, here are the counts:
Occurrences Phrase
13,187 "brand new"
2,350 "in box"
2,055 "never used"
1,444 "never been used"
1,029 "don't need"
510 "used once"
81 "unopened"
If you are a buyer, this is good news since you can acquire like-new items for low prices.
If you are a seller, this sounds like bad news. But there is a silver lining, if you give it a little help. Used items have the best success of being purchased by the following groups in order of success:
family,
friends,
neighbors,
strangers.
The first three are likely to buy your used items for the asking price, however, with these you are likely to set a "good deal" price.
How can you let them know you have these things for sale?
- Post them on a classified ad website (like NearbyItems.com), copy the URL to the list, and email that link to family and friends.
- Talk with family, friends, and neighbors about what you have for sale to see if they are interested. Mention NearbyItems.com.
- Get others to review the items for sale near them by using the "Within X miles" feature of NearbyItems.com.
Put yourself in the shoes of a neighbor: there may be things you want to buy but it isn't urgent so you put it off. But if you see that item for sale by someone you know up the street, and the price is below the new cost, AND NO SHIPPING charges, when then you are much more likely to buy now.
That is the "new" discretionary spending. It is something needed, bought used at a discount, and nearby.
Monday, December 14, 2009
How to Price a Classified Ad
Once, when working at an auto-body shop at 14 yrs old (long time ago), I was putting on a new bumper and asked my boss how tight to make the nuts. He replied "as tight as you can, and then a quarter-turn more".
That's how pricing used items is done. Lower the price until it hurts, then 10-20% more. Basically, there is alot more selling going on than buying in this economy. The items selling are those that are real bargains.
I saw some solar panels for sale that were bought for $900 each. The seller was asking $700, a 22% discount since they were used for less than a year. Problem is, the seller didn't look at what the cost was brand new. Now the new panels are $695 each.
Here is a tip on pricing: The second-hand selling price has nothing to do with the original purchase price.
Now that your expectations are lowered, here is an example of what to expect.
If a new bike (current price) is $150, and the used bike for sale, if it is in perfect shape, just a little "used" a pawn shop will offer you $50, but be willing to go to $60. A classified ad site cuts out the middle man, you should post the item for $80.
If anything is broken, figure half of that or no deal at all. People like to buy things that are ready to be used. If that is too hard to swallow, then fix the bike first, then sell it.
Waiting for a better offer? I knew a man who had to sell an item for immediate money needs, but felt that the current offer was too low. So he turned it down, thinking he could wait for a better offer, if none came he would call the original offer back and accept.
The original buyer bought something else that was in better shape, but for more money. So the (apparently) only buyer was out of the market. The item was still for sale after 3 months.
With selling used goods, you must lower your expectations. The purchase price at the time you bought it may be much higher than current new prices, due to current economic conditions.
Tip: Never say you are firm on the price.
People like to feel like they are getting a deal. Something that generates that feeling is underbidding the current price. Don't be firm, be flexible and get the deal done!
If the price is below what you are looking for, try asking if the buyer has anything for sale, maybe a trade will help. You could mention things you are looking to buy. Barter is the new "in" thing.
Happy Posting.
That's how pricing used items is done. Lower the price until it hurts, then 10-20% more. Basically, there is alot more selling going on than buying in this economy. The items selling are those that are real bargains.
I saw some solar panels for sale that were bought for $900 each. The seller was asking $700, a 22% discount since they were used for less than a year. Problem is, the seller didn't look at what the cost was brand new. Now the new panels are $695 each.
Here is a tip on pricing: The second-hand selling price has nothing to do with the original purchase price.
Now that your expectations are lowered, here is an example of what to expect.
If a new bike (current price) is $150, and the used bike for sale, if it is in perfect shape, just a little "used" a pawn shop will offer you $50, but be willing to go to $60. A classified ad site cuts out the middle man, you should post the item for $80.
If anything is broken, figure half of that or no deal at all. People like to buy things that are ready to be used. If that is too hard to swallow, then fix the bike first, then sell it.
Waiting for a better offer? I knew a man who had to sell an item for immediate money needs, but felt that the current offer was too low. So he turned it down, thinking he could wait for a better offer, if none came he would call the original offer back and accept.
The original buyer bought something else that was in better shape, but for more money. So the (apparently) only buyer was out of the market. The item was still for sale after 3 months.
With selling used goods, you must lower your expectations. The purchase price at the time you bought it may be much higher than current new prices, due to current economic conditions.
Tip: Never say you are firm on the price.
People like to feel like they are getting a deal. Something that generates that feeling is underbidding the current price. Don't be firm, be flexible and get the deal done!
If the price is below what you are looking for, try asking if the buyer has anything for sale, maybe a trade will help. You could mention things you are looking to buy. Barter is the new "in" thing.
Happy Posting.
Friday, December 11, 2009
How to Post an Online Classified Ad
This entry is a how-to on posting a classified ad, but from the perspective of what to include. Hopefully the site you choose to use to post is easy enough to figure out that you can do the rest. If not, then visit http://www.nearbyitems.com (shameless plug) for the ultimate in ease of posting.
What to include:
1. Say what the item is in the title.
2. Describe the item, accurately listing the good and the bad.
3. Use at least one picture, but more is better. Show close-ups of defects.
4. People are curious, they'd like to know why you are selling. If you don't say why in your ad, they will ask you at time of purchase.
Don'ts:
1. Don't try to attract attention by USING ALL CAPS or *** special formatting ***. This is called a "hack".
2. Don't disparage other sellers.
3. Don't state that you're firm on the price. More info on how to price items in a future blog entry.
Hope this helps. Happy posting.
What to include:
1. Say what the item is in the title.
2. Describe the item, accurately listing the good and the bad.
3. Use at least one picture, but more is better. Show close-ups of defects.
4. People are curious, they'd like to know why you are selling. If you don't say why in your ad, they will ask you at time of purchase.
Don'ts:
1. Don't try to attract attention by USING ALL CAPS or *** special formatting ***. This is called a "hack".
2. Don't disparage other sellers.
3. Don't state that you're firm on the price. More info on how to price items in a future blog entry.
Hope this helps. Happy posting.
Thursday, December 10, 2009
The Most Popular Selling Classified Ad Item
The most popular selling classified ad item is cell phones.
Of 810 phones that were sold over a month long analysis, out of a total of 4,827 for sale, here is the breakdown of the reason given for selling:
Start-up Business Idea
An enterprising person could buy cell phones from people upgrading their phones at the store and then resell them on a classified ad site.
The data for this analysis was taken from http://www.nearbyitems.com/ over the period of Nov 1, 2009 to Dec 1, 2009.
Of 810 phones that were sold over a month long analysis, out of a total of 4,827 for sale, here is the breakdown of the reason given for selling:
- 26% Upgrading to better phone
- 13% Need money
- 12% Unlocked resale service
- 12% Switch to different service
- 05% Got as a unwanted gift
- 03% Damaged
- 02% Downgraded
- 27% No reason given / Other
Start-up Business Idea
An enterprising person could buy cell phones from people upgrading their phones at the store and then resell them on a classified ad site.
The data for this analysis was taken from http://www.nearbyitems.com/ over the period of Nov 1, 2009 to Dec 1, 2009.
Tuesday, December 8, 2009
Credentials
Hello. I am a software developer and entrepreneur that has been working with the Classified Ad marketplace for over two years. As you know, the last two years have seen major changes in buying trends of new and used items. What was once bought with discretionary funds is now for sale using sites such as ebay.com, craigslist.com, and nearbyitems.com.
As one in touch with this marketplace, I am in a unique position to spot trends that are interesting and can be capitalized-upon by new businesses.
I'll be posting tidbits from time-to-time, so please, follow this blog to get notified when something new is posted.
As one in touch with this marketplace, I am in a unique position to spot trends that are interesting and can be capitalized-upon by new businesses.
I'll be posting tidbits from time-to-time, so please, follow this blog to get notified when something new is posted.
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