Need to check my maths due to wafer thin margins

Legacy_user

Hi peeps,

Ok I have been given the ok to retail my companies excess stock on ebay. Now this is good because at any one time there is in excess of 1/4 million in excess stocks. All good I hear you say......

Almost.

Basically I have been told I can only sell this by the pallet and that I get 10% of the *profit*, but as I need start up a company and then pay my company 90% of the profits, so can someone tell me if i'm missing anything

Basically If I sell a pallet for £500, after fees and VAT I will have to pay, ie paypal, ebay how much would I be left with ?

Cheers

13000

Searcher

13000 wrote:

Hi peeps,

Ok I have been given the ok to retail my companies excess stock on ebay. Now this is good because at any one time there is in excess of 1/4 million in excess stocks. All good I hear you say......

Almost.

Basically I have been told I can only sell this by the pallet and that I get 10% of the *profit*, but as I need start up a company and then pay my company 90% of the profits, so can someone tell me if i'm missing anything

Basically If I sell a pallet for £500, after fees and VAT I will have to pay, ie paypal, ebay how much would I be left with ?

Cheers

13000

I'm not sure on the actual fees but surely any profit would be what is left after Ebay and paypal fees are deducted in which case you would hand over 90% of what is left?

Edit: I think from memory Paypal fees are something like 20p per transaction + 3.5% I'm sure someone will correct if I'm wrong
As for ebay listing fees... find them HERE

freebie_junkie

13000 wrote:

Hi peeps,

Ok I have been given the ok to retail my companies excess stock on ebay. Now this is good because at any one time there is in excess of 1/4 million in excess stocks. All good I hear you say......

Almost.

Basically I have been told I can only sell this by the pallet and that I get 10% of the *profit*, but as I need start up a company and then pay my company 90% of the profits, so can someone tell me if i'm missing anything

Basically If I sell a pallet for £500, after fees and VAT I will have to pay, ie paypal, ebay how much would I be left with ?

Cheers

13000

please feel free to correct me if im wrong but i believe the paypal fees to be £25.25 and the ebay fees to be £26.25 plus the listing fee which depends on how much you start teh bidding for and wether or not you use special features etc.

so youd be left with £448.50, so if the fees are to come from your cut youd get nowt and if your cut comes after fees youd get £44.85.

pennymakespounds

https://www.ezay.co.uk

may be helpful

pennymakespounds

sorry

https://www.ezaytools.co.uk

VeryTrying_2

13000 wrote:

Basically I have been told I can only sell this by the pallet and that I get 10% of the *profit*, but as I need start up a company and then pay my company 90% of the profits

I don't think the problem here is Ebay fees or Paypal charges. I think your main problem will be how the PROFIT is calculated. Some questions:

How will the stock be valued? At book value ie what was paid for it? In which case you might have difficulty in even getting that much money back, never mind making a profit.

Of course, your company/current employer(?) won't actually care whether your new venture actually makes a profit or not - just so long as they get top dollar for their excess stock, they won't bother if the new company makes a loss. But I'm sure you will, because you'll be covering it.

Think carefully about who stands to gain most - them or you - before you go signing anything or spending money of your own. Sorry to be so negative. I'm not saying it's not a good opportunity, only that you seemed to be looking only at the little snags (PayPal fees, etc), but missing the main one (that you may never actually make a profit, but your employer could do quite nicely).

System

Well you will all be pleased to know we came to a much more amicable deal, with a lot better profit margin

Thanks for all the sites and help