HOW PROFITBUILDER SOFTWARE WILL
MAKE YOU MORE MONEY
The purpose of ProfitBuilder is two-fold. The first purpose is to
assist in product selection and pricing during the product acquisition phase. How do you know if the item you are thinking of selling will be profitable?
Every time I select a product to sell, I have a detailed understanding of what my profit margin will be on the item if it sells right away and how much risk of profit loss I am taking on in the event that the item has to be listed a number of times before it finally sells.
ProfitBuilder gives you all of this information up front, so you
can make an informed decision during product selection and continue
to operate a profitable business.
The second purpose of ProfitBuilder is to examine some of your
current items that may be not be selling quickly. ProfitBuilder
will show how much money you are losing if your item doesn’t sell
This information can help you determine what the best
course of action is for the item. You may decide the profit margin you
are currently seeing is satisfactory and not make any changes to the
listing. You may also decide to lower your price to achieve a better
conversion rate and a stronger profit, or you may decide that your
feature fees are cutting out too much of your margin and ultimately
are not worth having in your listing.
ProfitBuilder predicts in advance exactly how much profit eBay sellers will make on every eBay sale, allowing users to make sound decisions regarding which items to list for sale in a particular listing format.
The software guides you in choosing whether to list your item in an auction, fixed price or store inventory format, what choices to make as far as listing upgrades and how all of these choices impact how much money you’ll be left with upon sale of the item.
Using all of this information, ProfitBuilder will calculate your net profit margins for the first 10 attempts to sell the item.
Additionally, ProfitBuilder will assign a risk-level to your eBay listing, alerting you to items that carry a greater risk of reducing your profit than others when listed using your choice of listing upgrades and formats.
RESULTS: Using the information provided by ProfitBuilder Software, eBay sellers can determine which listing format and upgrades will yield the most profit for their listing while reducing their risk of losing money on certain items and will even know when they might make more money actually selling for less than originally planned.
A LOOK AT PROFITBUILDER
Here are some screenshots of ProfitBuilder and some examples so you can see how to use it to make more money in your ebay business.
ProfitBuilder will allow you to specify the following for your listing:
• Listing format (Auction, Fixed, Store Inventory)
• Starting bid, reserve and Buy It Now for auctions
• Expected sales price for auctions
• List price for fixed and store inventory
• Listing features (gallery, scheduled listings, etc.)
• Cost of goods purchased from supplier
• Cost of postage
• Cost of packaging materials
• Payment methods
Based on your inputs, ProfitBuilder will calculate the following automatically:
• eBay insertion fees
• eBay feature fees
• eBay final value fees
• PayPal fees or custom merchant account fees
• ProfitBuilder Risk Ratio
• ProfitBuilder Risk Level
• Net Profit Margin for the first 10 attempts to sell the item
(Calculates the effect of unsold listings on your potential profits)
Following is a screenshot of the ProfitBuilder Software so you can
see an example:
As you can see from the screenshot, ProfitBuilder Software allows you to choose which Auction Type, Picture Services, Payment Methods, and General Auction Upgrade Features you want to include in your pricing analysis.
A quick click of the mouse next to the items that you wish to select will incorporate them into the software analysis. You then just enter the expected sales price and amount of shipping and handling you are charging for that item in the Auction Expected Pricing area and enter your cost of purchasing the goods, your cost of packaging materials, and your costs of postage for shipping the item into Costs/Fees areas.
ProfitBuilder Software then automatically calculates your total costs; your net profit margins for your first ten attempts to sell your item, and the corresponding risk ratio, risk level and amount of risk you are taking on by choosing to list this item in this auction format with these features at this price.
Let’s look at the example above:
Based on the chosen format, features, and price the software has assigned a medium risk to listing this item. The profit margins for the first ten attempts to sell this item have revealed that you could still make a little bit of money if you sold this item by the fifth try and that you would lose money if it sold after that.
But this also reveals to you that you could actually make more money by reducing your price earlier in the sales process. Example, since eBay will give you an insertion fee credit if your item sells the second time its listed you could lower your price on the second listing by up to $2.40 to make the same thing you would make if it sold the third time.. $5.72 (net profit if sold in 2nd listing) – 2.40 price reduction = 3.32(net profit if sold in 3rd listing).
Let’s say that you lowered your sales price by $1 on the second listing…you would still yield approximately 4.72 net profit (the 5.72 net profit margin if sold in 2nd listing less $1 for the price reduction) which is 1.40 more than selling for the higher price the third time around.
ProfitBuilder will help you see what amount of price reduction you could make at various points in time to actually end up making more profit by selling for less money and giving your customers a better deal.
Here is an example of how ProfitBuilder points out when items are too risky to list in an auction or fixed price format:
The risk level tells you on a scale of 1 to 5 how much risk you are taking on by attempting to sell the item using the sales price and listings features you have specified. This is an easy way to alert you to items that may be a little too risky to offer in a Fixed Price or auction format, without a great deal of detailed analysis done on your part.
This is a pretty high-risk item and would not be ideal for selling in a fixed or auction style format. As you can see above, if your item does not sell during the first two listings, you will definitely net a negative profit for the sale. Instead, you might think about listing this item in a Store Inventory Format. With this type of format, you will have far less risk of losses and will still be able to offer the item for sale.