eBay is one of the greatest inventions ever. Whenever I need a little extra cash and a fresh challenge, I market a product on eBay. Notice which word I used – market – not sell. Here’s the difference. When you sell an item, you approach your market. When you market an item (correctly, that is…) your market comes to you.
As I mentioned a couple of blogs ago, I’ve been studying Trump University’s Marketing 101. And last week, I decided to put my marketing skills to the test, listing my Roland XP 10 Digital Synthesizer. It had a broken key and I was not planning to get it fixed. So immediately, I had to think like a potential buyer in my target market. They would have to take their time and energy to get the key fixed and that would have been reflected in the price the customer was willing to pay. Not only was I totally honest by mentioning the broken key in the product description, I also decided to make up for that lost value with a few extras. I threw in two MIDI cords, two audio cables, a damper pedal, gig bag and a 253 page guide to building a home studio. Separately, these items would have sold for little or nothing. And while throwing in the extras I thought “no one else does this, why should I?” But I realized that creating value is in my nature and it sets me apart from the other sellers. So, I posted the keyboard package at one cent ($.01), crawled in the bed and went to sleep. The next morning when I checked the price, it had risen to $20.50. Long story short, the keyboard package sold for $255…to a guy in Argentina.
Let’s take a look at this from a financial standpoint.