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  1. #1
    Grand Slam Winner Smiffy's Avatar
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    How do they make any money?????

    Ordered a couple of angled "banana plug" pin connectors for my surround sound speakers a couple of weeks ago off the bay.
    https://www.ebay.co.uk/p/2x-24k-gold...p2047675.l2644
    Didn't notice at the time but it's an overseas seller (China) so they are taking their time getting to me. No problem though, I can make do until they arrive.
    Thing is, they are 99p with free postage!!!!
    Why on earth would somebody in China bother selling these for 99p when the postage must cost as much, if not more than that???
    Yes, I know these are knocked out by a factory somewhere for pennies.
    But even if they only cost 2p to manufacture, would you bother to send something half way around the world for 97p?????
    Cooden Beach Centenary Betterball Champion 2012 with Richart Handicap 13.0 Member http://www.coodenbeachgc.com/ Nike Covert 2.0 VRS Driver, 3 & 5 woods.TaylorMade RSi1 4-LWYes Tracy Putter. THIS IS THE YEAR OF THE KNOB.

  2. #2
    Tour Rookie IanM's Avatar
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    Re: How do they make any money?????

    Heck of a margin in percentage terms..... but you need to sell a few million units
    A bit Old School, Taylor Made Woods & Ping Irons! Jetspeeds and i25s
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    Somedays they behave, others less so!
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  3. #3
    Money List Winner Lord Tyrion's Avatar
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    Re: How do they make any money?????

    It shows how little a Chinese company needs to make to survive and how difficult it is to compete against Chinese companies as a UK business.

  4. #4
    Money List Winner GreiginFife's Avatar
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    Re: How do they make any money?????

    That 99p is roughly 9CNY and will be sold at volume worldwide.
    Probably cost a fraction of yuan per unit to manufacture.

    Like many far eastern suppliers it's all economy of scale.
    A bag full of Mizunos, a Bettinardi and hope. Lots and lots of hope..

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  5. #5
    Money List Winner paddyk's Avatar
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    Re: How do they make any money?????

    Quote Originally Posted by GreiginFife View Post
    That 99p is roughly 9CNY and will be sold at volume worldwide.
    Probably cost a fraction of yuan per unit to manufacture.

    Like many far eastern suppliers it's all economy of scale.
    and probably cheap crap. you'll have to buy again

  6. #6
    Money List Winner Rooter's Avatar
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    Re: How do they make any money?????

    you guys are missing the point, postage alone to china from the UK is 1.02. OK so they will get a better deal, but how much in reality can they get postage for? they have to be selling in the 100's of 1000's!
    Owner of golf clubs, dusty golf clubs...

    Talks a lot of sense on twitter @scottroots

  7. #7
    Grand Slam Winner Smiffy's Avatar
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    Re: How do they make any money?????

    Quote Originally Posted by paddyk View Post
    and probably cheap crap. you'll have to buy again
    I will let you know.
    Cooden Beach Centenary Betterball Champion 2012 with Richart Handicap 13.0 Member http://www.coodenbeachgc.com/ Nike Covert 2.0 VRS Driver, 3 & 5 woods.TaylorMade RSi1 4-LWYes Tracy Putter. THIS IS THE YEAR OF THE KNOB.

  8. #8
    Challenge Tour Pro SVB's Avatar
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    Re: How do they make any money?????

    I've wondered that.

    does anyone know how overseas postage works. If you pay Royal Mail £1 to post your item, when does their work end, at the uk boarder, at the destination boarder / post? Does any of your £1 go to the post service of the destination or is it delivered on some sort of reciprocal FoC basis? What about countries with no nationalised mail service?
    In the bag, Ping i25 (10.5*); G25 H:17/20/23/27*; i25 6i-UW; 54 + 58 Tour Wedge. SC Newport 2.5 Putter Minchinhampton New Course

  9. #9
    Money List Winner GreiginFife's Avatar
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    Re: How do they make any money?????

    Quote Originally Posted by Rooter View Post
    you guys are missing the point, postage alone to china from the UK is 1.02. OK so they will get a better deal, but how much in reality can they get postage for? they have to be selling in the 100's of 1000's!
    No, I pretty much get the point. But the fact remains that these companies will be small margin, high volume businesses. Postage will be on a very low flat rate so even making 4CNY on each unit and globally distributing millions (rather than hundreds of thousands) will return healthy profit.
    I run operations for a company that trades on a similar model and it works very well.
    A bag full of Mizunos, a Bettinardi and hope. Lots and lots of hope..

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  10. #10
    Ryder Cup Winner SocketRocket's Avatar
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    Re: How do they make any money?????

    I doubt if anything much gets posted direct from China. They normally cram Containers with all manner of goods and have them shipped on massive Container ships to UK warehouses.
    Play it cool Trigger!

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