Many small business owners plan to increase profits while reducing costs in 2007. Since inventory, advertising, listing and Final Value Fees, and shipping costs are directly tied to volume they will increase proportional with sales.
The factors that small business owners can control are shipping weights and sizes, listing features, advertising costs, and the starting and ending prices of listings.
Shipping weights and sizes can be controlled by eliminating extra space and excess packaging materials when shipping. Order a variety of shipping cartons in different sizes at one time to save on freight. Many companies such as U-Line, Office Depot, and Staples offer free shipping on orders over a certain value. While the initial cost of shipping cartons may seem high, the accrued savings in lower shipping costs is substantial.
Listing Feature costs along with starting and ending prices can be controlled and optimized through the use of market research tools such as Hammer Tap. Hammer Tap allows individual sellers to analyze actual market data on individual items, brands, even competitors and other sellers to see what works and how well it works. The monthly cost of research tools are well worth the increased sale prices, and the elimination of unnecessary features will more than cover the cost for most sellers.
While every business owner wants to save money, it is often more profitable to control costs and keep them proportional to sales. For additional tips on cutting costs while increasing profits be sure to visit the Auction Tempest site at http://www.auctiontempest.com
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