Tuesday, March 1, 2016

Turnover Tuesdays - I Should Have Taken My Own Advice

For those who are not familiar, I started a series a while back called Turnover Tuesdays. Every Tuesday I like to highlight one item that I have resold. This will include profitable and non profitable sales. I hope that there is always something to learn.

In week 38, I said "Don't be Afraid to Recall Your Inventory".  I wish I would have heeded my own advice, at least a bit sooner.

The Item - Bunchems Mega Pack

I bought 30 units of Bunchems Mega Pack from Target for $19.99.  This was on November 17th.  At the time, the item was going for about $35 on Amazon.

I went for the gold and listed it at $40 each and bought 30 of them

Unfortunately, as happens a little too frequently things did not work out as I planned.

The item never quite got back up to $40 so I lowered my price at some point to about $30-35.  Still no takers.

Then the dreaded happened, Amazon started selling the item.  You can see the results of what happens when Amazon starts selling your item and they have more than 1,000 units and match every sellers who drops their price to beat Amazon.

If you check out the listing, it is now down to slightly below $20.  Yikes!

A few weeks ago it was at about $22.  I could have just waited it out (possibly until next quarter 4).  Not a great option considering how many sellers there were, how much it dropped and Amazon is still selling it.

The other option was to drop my price.  I did that and on February 11th I lowered to $22.69.  More than just the increased float, any inventory sitting at Amazon is inventory not cycling through to the next sale to earn more and more money.

The results were a bunch of sales.  At least I was getting rid of inventory.  The results are not pretty though:

Losses of 25% - Double Yikes!

Then my friend @mileswhip knocked some sense into me.  I should have listened to my own advice and removed my inventory.  I set up a removal order and all my Bunchems are safe at home.

I need to figure out what to do with them because the 90 day return policy is passed from Target and I don't want to return the remaining 22 with my driver's license.  Had I removed it earlier, it would have been no problem at all.

I might need to "buy" them from the business and then my kids will have some happy friends courtesy of my tax deduction ;)

Don't tell my wife but I might just keep them in my basement until quarter four. Shhhh!