eBay (via Johnnys General Electronics): New Apple iPad 4 with Retina Display 4th Generation 16GB Wi-Fi NEWEST MODEL $469

Quote from WingsOfF : Not much different from other top electronics brands just that Apple used to control the retail price to not let the retail price drop by controlling the supply and with marketing dollar incentives (they would throw in dollars for marketing the product if the retail price was not disounted). Most premium brand companies try to do this. With increased competition and a glut of iPads in the supply chain and used/refurbished markets, they have started to lose that control. There are also revenue pressures from Wall Street to move more units. Hence the increased advertising on TV, etc for iPads recently. This guy gets the limited supply the same way the grocery chain Shoprite did recently for the yet to be beaten deal so far on the new iPads when I bought one.

How much profit do you think this seller makes after eBay fees, PayPal fees and shipping?

Quote from mvinuela4812 : how much profit do you think this seller makes after ebay fees, paypal fees and shipping?

$5.00

For CA folks like me, Powermax [powermax.com]is still the better option. No tax or shipping and you can get a $10 off coupon by subscribing to their newsletter.

When I read the title for some reason I saw Jony Ive's electronics. I thought yes the stock is down but come on man.

Quote from mvinuela4812 : How much profit do you think this seller makes after eBay fees, PayPal fees and shipping?

Difficult to say for any particular seller since there are a lot of variables in sourcing and volumes. At this types of sourcing of occasional 200-300 units at a time, I would expect his margins on the sale to be around 20-30% on HIS COST. Could be less depending on where he sources them.

You would have no problem making money on these things IF you have access to any wholesale or overstock source. His pricing is based not so much on making a certain minimum margins but rather arbitraging the tax situation (for non CA residents) and the lack of discounted prices at retail outlets that Apple controls (except at Microcenter). He can afford to sell it for even less and still make money but why do it if he can sell his entire limited inventory at this price when the small discount from list combined with "tax evasion" (which does not affect his margins) makes it attractive enough to sell all of his limited inventory each time.

Quote from WingsOfF : Difficult to say for any particular seller since there are a lot of variables in sourcing and volumes. At this types of sourcing of occasional 200-300 units at a time, I would expect his margins on the sale to be around 20-30% on HIS COST. Could be less depending on where he sources them. You would have no problem making money on these things IF you have access to any wholesale or overstock source. His pricing is based not so much on making a certain minimum margins but rather arbitraging the tax situation (for non CA residents) and the lack of discounted prices at retail outlets that Apple controls (except at Microcenter). He can afford to sell it for even less and still make money but why do it if he can sell his entire limited inventory at this price when the small discount from list combined with "tax evasion" (which does not affect his margins) makes it attractive enough to sell all of his limited inventory each time.

i think this guys making less than 5% selling them on ebay

Quote from mvinuela4812 : How much profit do you think this seller makes after eBay fees, PayPal fees and shipping?

mvinuela4812: NONE of your business.
Same if you're asked: What's your salary?

Quote from khoi21 : i think this guys making less than 5% selling them on ebay

5% is a good amount of profit per item. Not to mention Ebay gives him a good deal (it increases traffic volume and visibility for them).. all in all he makes anywthere between 12% - 15% on each sale.

Bought one and OP repped. Biggest plus for me is the wifi range. iPad 3 had reduced wifi range compared to the 1 & 2, and it's 'fixed' in the 4. Doesn't affect most people, but in an old solid house like mine it was a PITA. Standing there at applestore with my 3 and my 2 showing them the difference in signal strength...didn't matter, it was 'operating normally'. Sold the 3 a while back....

Quote from mickey75 : mvinuela4812: NONE of your business. Same if you're asked: What's your salary?

That's a really childish viewpoint. The only people who aren't able to speak freely about their income and expenses are 1) those ashamed of not working hard, no matter what they make, and 2) only setting themselves up for missed financial opportunities and a continued lack of financial independence.

Quote from germinator : For CA folks like me, Powermax [powermax.com]is still the better option. No tax or shipping and you can get a $10 off coupon by subscribing to their newsletter.

That's unfortunately true... even with Microcenter's 459.99 still comes out to 500 after tax and CA recycle fee...

tax for ca peeps kills the deal, where you at go4computer?

I lucked out and caught a dude selling a brand new sealed 16GB iPad 4 on craigslist. I talked him down to $425. The kids love it and it's sweet for educational stuff. I'm glad I got a good deal on a new unit. I originally bought a 3rd gen refurb on Wal-mart's website and it was cold busted. It clearly wasn't Apple refurbished. The box was unwrapped and sealed in a plastic bag with scotch tape. The screen film that covers the iPad had been removed and placed back over the screen with crumbs and lint caught underneath. I don't think Wally actually did a darn thing to this iPad except ship one to me that some yokel had used for a couple months and returned to the store. Thoroughly disappointed because the price was right. Buyer beware on Wally World's refurbs; they're definitely hit or miss. Some reviewers actually got pristine units that were said to look brand new. I wasn't so fortunate. Like McKayla Maroney, I am not impressed with Wal-mart on their iPad units.

Quote from Vik : 5% is a good amount of profit per item. Not to mention Ebay gives him a good deal (it increases traffic volume and visibility for them).. all in all he makes anywthere between 12% - 15% on each sale.

Don't know whether you guys have any experience in retailing, not a one-of-sale on CL or eBay but having a business, carrying inventory with cash flow issues, etc. Do you have any idea of wholesaling numbers to come up with these percentages?

Nobody stays in business at 5% margins unless you are moving hundreds of thousands of units. CostCo has way better margins. Even 15% margin is not sufficient to compensate for inventory risk, cash flow, etc.

This guy has been running a non-trivial business carrying inventory, not a guy with a couple of things to sell where it wouldn't matter if he didn't sell any.

Too many armchair retailers in denial of what these things cost relative to what they are being sold at.