Overpriced cards on ebay -- Are they part of a tax scam?

[ctownboy]

But, here is the thing, they are NOT paying a listing fee right now.

From 12/27 - 12/29, eBay has had FREE LISTING DAYS, no matter how many items you want to list.

For me, I get 50 free listings a month and then I have to pay a small fee for each listing above 50. I was getting close this month and then I got an E mail from eBay telling me that I could list however many things I wanted, FOR FREE, during those three days.

So, my guess is, these "dealers" who refuse to lower their prices just wait for these free listing days and then they list their museum pieces and hope that somebody flush with cash decides they want to overpay for something.

David

[buymycards]

Even if the listing fees are free, it still costs money to keep these items in your ebay store month after month. I pay $50 per month for the store, plus a nickel per item every month. Most of my stuff is low end, and most of my stuff is "buy it now or best offer". I normally accept any offer that is 50% or more of my BIN price. I wan't to keep turning over my inventory, because even at a nickle per month per item, if I have 800 items listed, it adds up. When I sell an item I pay 12% of the selling price, plus the paypal fee.

It does pay to make offers on items that interest you. Yes, you do run across some sellers who act like jerks when you make an offer, but you also run into some nice people who are willing to work with you. I have been watching an item for the last 3-4 months but I didn't want to pay the BIN price of $225. Yesterday I made an offer of $150, and the offer was accepted.

Don't let the jerks keep you away from the BIN's. There are still some good deals out there.

Rick

[BlueDevil89]

Personally, it doesn't bother me that sellers are asking high prices for their cards. They own them, so they have a right to ask anything they want for them. If enough dealers buy up the available inventory on the market, and refuse to sell except at high prices, there's going to be inflation. I see it going on already. Cards that could be had readily at eBay auction 2 - 4 years ago are becoming more difficult to find, except via BUY IT NOW. When you do find them on auction, the final bid prices are 25 - 40% higher than a few short years ago.

I think the demand for the vintage cards is rising, and in recognition of that, sellers are asking higher and higher prices. Also, if dealing cards is not the seller's primary source of income, the indivdual can wait indefinitely to get the asking price, even if that means allowing a few years to pass for the market to catch up to the inflated asking price level.

We shouldn't bemoan that we didn't buy up cards yesterday while the prices were low. Instead, we should get out there today and buy up the vintage cards that can be had now while they're still available. They'll only cost us more tomorrow.

[batsballsbases]

It seems I was PMed by the person some of us were talking about in this thread. Instead of lurking around in the dark and sending me PMs why dont you post up and tell us why your business pratices are the way they are. So then we will all know and we can model our business after yours!Just to set the record straight I changed out any reference to your ebay handle,so I could be talking about anyone. Second in your reference to Leon Im well known on the board and if Leon wishes to give out the info to you that would be up to him. But until you post I see no reason to do that.

[ctownboy]

buymycards,

If these people don't have a store, just a regular eBay auction account, then they have no extra expense and can just post their "museum" every dump day for free.

David

[Exhibitman]

Inventory is not a deduction unless it goes bad [like perishables that spoil] and you write it off. Otherwise, you carry it until disposition.

The only "tax angle" at the end of the year for a calendar year taxpayer with a card selling business is to offset actual gains from the rest of the year with losses by dumping bad inventory at a loss to free up cash flow. The theory is that if you are in the top marginal tax brackets for Fed and state then every dollar of profit will be taxed at about 40%, so if you sell dead inventory [the junk we all accumulate and can't seem to get rid of] at a blow-out sale resulting in a loss, the loss offsets marginal profits you've already realized and you are effectively dropping about 40% of the loss on the government. It isn't a recipe for success but is sometimes done when cash flow [say for an upcoming auction] is a consideration and it's time to clean out the junk box. Letting the G absorb 40% of the loss can be somewhat soothing...

[Runscott]

Originally Posted by Exhibitman

Inventory is not a deduction unless it goes bad [like perishables that spoil] and you write it off. Otherwise, you carry it until disposition.

The only "tax angle" at the end of the year for a calendar year taxpayer with a card selling business is to offset actual gains from the rest of the year with losses by dumping bad inventory at a loss to free up cash flow. The theory is that if you are in the top marginal tax brackets for Fed and state then every dollar of profit will be taxed at about 40%, so if you sell dead inventory [the junk we all accumulate and can't seem to get rid of] at a blow-out sale resulting in a loss, the loss offsets marginal profits you've already realized and you are effectively dropping about 40% of the loss on the government. It isn't a recipe for success but is sometimes done when cash flow [say for an upcoming auction] is a consideration and it's time to clean out the junk box. Letting the G absorb 40% of the loss can be somewhat soothing...

Thanks for the tips, Adam

[Leon]

Originally Posted by batsballsbases

It seems I was PMed by the person some of us were talking about in this thread. Instead of lurking around in the dark and sending me PMs why dont you post up and tell us why your business pratices are the way they are. So then we will all know and we can model our business after yours!Just to set the record straight I changed out any reference to your ebay handle,so I could be talking about anyone. Second in your reference to Leon Im well know on the board and if Leon wishes to give out the info to you that would be up to him. But until you post I see no reason to do that.

This person also emailed me and PM'd me today about having your name in your posts. He went so far as to cut and paste one of the rules. I guess he not only has super high prices on ebay, he didn't really read ALL of the rules. I fired back the catch-22 rule and used it on him. Even though he is a member he hasn't ever posted, not even once. I see no need to help someone that doesn't contribute and spews the rules back to me. *(rules, unfortunately for him, that I wrote). If this was an egregious issue then maybe it would be different but him just whining to me over someone stating the obvious about his auctions wasn't going to make me change my mind. best regards

I should add....for clarification, I still would tell the person that emailed me, though he hasn't asked, who this poster is but that is about it. Everyone has a right to know who is saying anything at all about them, imo.

[HRBAKER]

Originally Posted by Leon

This person also emailed me and PM'd me today about having your name in your posts. He went so far as to cut and paste one of the rules. I guess he not only has super high prices on ebay, he didn't really read ALL of the rules. I fired back the catch-22 rule and used it on him. Even though he is a member he hasn't ever posted, not even once. I see no need to help someone that doesn't contribute and spews the rules back to me. *(rules, unfortunately for him, that I wrote). If this was an egregious issue then maybe it would be different but him just whining to me over someone stating the obvious about his auctions wasn't going to make me change my mind. best regards

Looks like a trip to the Blocked Bidder List for you Leon.
I hope you can sleep.

[Leon]

Originally Posted by HRBAKER

Looks like a trip to the Blocked Bidder List for you Leon.

and my wife will thank him!!


.
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[danmckee]

Originally Posted by buymycards

Even if the listing fees are free, it still costs money to keep these items in your ebay store month after month. I pay $50 per month for the store, plus a nickel per item every month. Most of my stuff is low end, and most of my stuff is "buy it now or best offer". I normally accept any offer that is 50% or more of my BIN price. I wan't to keep turning over my inventory, because even at a nickle per month per item, if I have 800 items listed, it adds up. When I sell an item I pay 12% of the selling price, plus the paypal fee.

It does pay to make offers on items that interest you. Yes, you do run across some sellers who act like jerks when you make an offer, but you also run into some nice people who are willing to work with you. I have been watching an item for the last 3-4 months but I didn't want to pay the BIN price of $225. Yesterday I made an offer of $150, and the offer was accepted.

Don't let the jerks keep you away from the BIN's. There are still some good deals out there.

Rick

Rick is correct! That card was mine, listed at $225 and I accepted his $150. I list my stuff high as I am not in any need to sell it and I always get beaten down at shows so why should my ebay store be any different?

Rick made an offer, I looked to see what I had in it, how long I have had the card, and how rare it is. Those are factors I consider. So I have had that card awhile, it is tough but not impossible, so I accepted Rick's offer.

After fees, I think Rick wound up buying me a shot of decent vodka.

Dan

[chaddurbin]

i recently offered a seller $375 for an item he was willing to sell on ebay for $400 and he rejected me saying he'd rather do the $400 transaction on ebay and give them the ~$35 instead. why? did ebay have him sign a non-competing agreement and he had to put up his first son as collateral?

i've had this happen a few times the past month...they just flatly refuse to engage to the point where they don't want to save money or do the deal.

[Jay Wolt]

they just flatly refuse to engage to the point where they don't want to save money or do the deal.

Its not that these sellers don't want to save money, more so if they do the transaction
off of eBay, they might get tossed from eBay.

[chaddurbin]

i understand that point jay, but a simple email off-grid away from "my ebay message" couldn't hurt. i see many examples on the bst linking to their ebays with smth along the line of pm me here and take 10% my ebay prices.

i don't base my business on selling on ebay so maybe i take the threat of banning more cavalierly.

[Runscott]

Originally Posted by chaddurbin

i understand that point jay, but a simple email off-grid away from "my ebay message" couldn't hurt. i see many examples on the bst linking to their ebays with smth along the line of pm me here and take 10% my ebay prices.

i don't base my business on selling on ebay so maybe i take the threat of banning more cavalierly.

This has become a 'venting' thread. If you go back and read my previous posts, you'll find the answers to both these questions (why they didn't accept your offer, and how they can avoid ebay fees legally). I'm sure many here won't believe me, but I've experienced it. That doesn't mean that you won't run into sellers who simply don't know how to conduct business. And, of course, you can throw everything out the window if you are even slightly rude to them.