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MAC - WHY SOME MAC PRICES ARE SO HIGH ON EBAY - READ

by: wc-racer( 13346Feedback score is 10,000 to 24,999) Top 1000 Reviewer
286 out of 321 people found this guide helpful.


WHY ARE SOME MAC PRICES HIGH OR MORE THAN RETAIL?  THIS COULD ALSO APPLY TO ANY BRAND OR ITEM.

  I recently read a guide written by a new buyer, and the tittle basically said, don't let sellers rip you off by charging high MAC prices.  She simply complained about how high some items would sell for in auction (which the seller has no control over).  She also complained that MAC was being sold for retail or above retail prices and that this was just seller's ripping people off.  So I felt the need to explain a few reasons for some of the high MAC prices. 

I will address mainly STORE listings, since this is where it may appear sellers are taking advantage of people at.  Actually, many items are priced LESS than what they would sell for in auction format (usually the discontinued/limited edition items/colors are the store items priced high).  Retail price on Ebay can still be cheaper than going and buying it yourself in the store, IF the item or color is still available through MAC. 

Auctions can be a place for getting good deals, HOWEVER, they are also for trying to find items you can't get in the retail market, so sometimes the items can cost more than the retail price.  Auctions are NOT garage sales as some people seem to believe - and not all sellers are trying to rip the buyers off.   Most sellers are on Ebay, because this is THEIR BUSINESS and how they earn an income - they are not here to sell items for less than what THEY PAID. 

First, most sellers do NOT get their MAC at discounted prices!  Some do -most don't, so it amusing when someone complains that the price of an item is same as or more than retail price (would YOU buy an item for $14.00 plus tax, then sell it on Ebay for less - plus have to pay all of the Ebay and Paypal fees on top of losing money on the sale price???).  Even those who do get a big discount on some items, may still pay full retail price on many of their other items, especially limited edition and special items, and some sellers will buy quantities of these items so they will have them to sell later, once MAC has sold out (or when the buyer needs a replacement).  So in addition to paying retail price, we pay MAC's high UPS shipping rates (starts at around $8 for even one item), and depending on where we live, tax can be as high as 9.75% - yes, we pay tax too!!

The MAC items priced above retail are usually the products/colors, that are discontinued and can only be purchased on Ebay, so supply and demand kicks in - just like with any other products in limited supply.  $17.99 may sound high for example a MAC lipglass or lipstick that retailed for $14 (or eye shadow that retailed for $14.50) - when they were available, but once you figure in the shipping and tax the seller had to pay, then the time it takes to list and ship the item (including post office time and gas to drive there and back), maintaining the Ebay store, answering ALOT of daily emails, and even the time it actually takes the seller to buy their stock (sometimes we have to call many MAC stores to find these items - and it's long distance), $17.99 starts sounding alot cheaper!  Then figure the store listing fees, the Paypal fees (higher than Ebay's regular auction final value fees and higher yet for international payments), Ebay's final value fee (WHICH FOR EXAMPLE IS NOW 12% of the sale price), plus the cost of shipping envelopes, boxes, bubble wrap, tape, shipping labels, fragile or other informational labels, paper for the invoices, printer ink (one cartridge per week for the black if selling about 100 items per week), bubble bags for protecting products, and I'm sure I have left a few costs out (like the monthly store charge itself because this is not included in the listing and final value fees per item, the on-line printing service for labels/postage - like click 'n ship, etc. which the seller uses to save money on del. confirmation and saves time on shipping, etc.).  PLUS, some sellers such as myself, include small free items with every package shipped, and I buy a very expensive metallic, cool-shield bubble material to protect my lipsticks during shipping in the hot summer months.  Again, I'm sure there are some costs I'm not remembering (there are also costs with maintaining a computer, printer, and email site - especially when your hard drive goes out, printer dies, the seller's camera breaks, etc.).  NOW that $17.99 IS CHEAP!  To be honest, there is no profit at all in selling the item for this price - the seller might just be breaking even.  Those buyers who DO buy their MAC from a MAC store, still have to pay the tax and either the UPS shipping costs or several dollars in gas, plus the travel time involved (my MAC store is 1 1/2 hours EACH WAY).  So they may end up paying even more for the item, than the sellers' store price!  We would all love to be able to buy our MAC very cheap on Ebay, but alot depends on how much the seller must pay for the merchandise.  It's VERY difficult and for most sellers, it's impossible, to find a wholesale supplier (then IF they CAN find one, most will only have a limited selection of product and they still aren't free - AND most "wholesalers" are responsible for the fakes that are so prevalent now).   A seller will have to be able to buy their items very cheaply, in order to be able to actually resell their MAC THAT cheaply (MAC on Ebay is that REALLY cheap, should be a HUGE RED FLAG FOR BUYERS.  

Why would someone sell these products if not making a profit?  Everyone has their reasons.  Maybe they are making their profits on other items or regular auctions.  Maybe they really need the money so are willing to just break even for awhile or on certain items?  Some of the newer sellers just don't realize how much it is costing them to sell an item or they are building their feedback up, since many buyers are afraid to buy from new sellers!  Personally, I lose money on many items, then try to make it up on the rare/limited edition items.  However, in this economy, there isn't much profit.

I DO AGREE there are some sellers who DO charge far too much for their store items.  Some are charging 2-3 times more than most other sellers.  They are not only making a profit, but are making a killing (if they can even sell the item at that price)!!  Some will also charge very high shipping so some of their profit is coming from that, rather than just on the actual items' selling price.  It's very easy to see when a seller IS really overcharging.  Just do a search for that item, then go to the last of those listings (look for where the store listings start for that item), and compare the prices!   If someone is over-charging, they will be the only seller or two, who's price is much higher than the majority of the other sellers!   Beware of the one selling for a MUCH cheaper price than everyone else too.  Is their shipping for a lipstick $8 or $9+ (so they are making up for the low price by overcharging shipping)?   Also, again, there ARE alot of fake MAC products on Ebay now!  Remember that these are store or fixed price listings, NOT items listed in auction format because auction prices can start at any price.   Auctions may start at .99 cents, but these auctions usually end up selling for more than those that start at 7.99-9.99 (for example), or will even sell for more than those listed in a store with fixed prices because usually, the more bidders there are, the higher the selling price of the item.  Then again, many buyers put a watch on auctions, but forget to come back and bid, so the item sells for very little and the seller loses ALOT of money (this is why so many sellers have stopped listing in auction format).  HOWEVER, items in auction format, can easily sell for much more than the fixed price or store listings (people get into bidding wars).  Auctions are risky these days.

Usually, the high fixed priced items are almost always the discontinued items or colors (or limited edition colors that we know are going to sell for 3-4 times the retail price, once they are sold out at MAC).   IF I list these items in my store, this price will usually be alittle lower than what I used to normally sell it for in an auction format (normal for a discontinued lip/eye color in auction is approx. $20-35 during the fall/winter).  Sellers DO also need to make SOME profit in order to continue selling!  During the slow months (spring/summer), most sellers must list more items in their store with fixed prices (lower prices too), simply because there are so few buyers on Ebay that they will lose alot of money if their items are in the auction format and only get a couple of bidders - so the store listings guarantee the selling price (even if the fees take most of the profit - at least they will break even or not lose money).  So essentially, most sellers set the store or fixed price, so the item will sell for the same amount - year round, rather than selling it in auction format for $6 one month, then $30 another month!

Many of you already know why some MAC items are being sold for retail or above retail price, but there are many who don't know this so I just wanted to add some awareness for these buyers.  Remember that in the auction format (where bidding takes place), the final selling price is whatever the buyers are willing to pay!  Some people are willing to spend alot on a make-up item, while others wouldn't dream of spending that much - but they would on their 50th pair of shoes!  So what's important to some buyers, isn't what's important to others.  For many buyers, it's more convenient to buy on Ebay whether it's due to lack of time, maybe there's no MAC store anywhere close, or many other reasons.  Some people just find the process of bidding on auctions - FUN!!!   If Ebay is the only place to get certain items, and several people are looking for that item, it is going to cost more - whether it's MAC or another brand.    If the price is WAY too high, then don't buy it, if you want to drive to your MAC store, .   Someone may have it cheaper (beware of fakes and high shipping charges too), and if they don't, and all the sellers are charging the same amount, then it's probably not overpriced - you just don't understand that we don't get our items for free - so we can't give it away.

These are just some of the reasons why MAC may be priced near or above retail price on Ebay.  I hope this has helped some of you who have had some wrong impressions of sellers.  Remember what it costs us to sell these items on Ebay.  If we don't pass this cost onto the buyer, then we can't afford to buy more MAC to sell (this is true with any brand).  If an item is $5.00 over retail price, and we paid retail price plus tax and shipping for the item, then we are LOSING MONEY by the time we figure in all of the fees and costs associated with selling and shipping. These days, if you can find a seller with authentic MAC - count your blessings and stick with them because the new counterfeits are SO GOOD, that it's nearly impossible to tell them apart from the real thing, and you have no idea what dangerous ingredients are in the fakes!  In addition, in many countries, they can't even get MAC (or have very few locations and alot of collections are not released there) and their prices are triple what the U.S. prices are, so they are getting great deals on Ebay compared to what it would cost them in their own country.  Most sellers are just trying to make enough profit, so they can continue selling - and pay a few household bills too.

PLEASE SEE MY GUIDE ON HOW TO SPOT FAKE MAC, AND HOW TO PROTECT YOURSELF FROM A VERY TRICKY SCAM IN SOME EBAY AUCTIONS NOW.  YOU NEED TO BE AWARE OF THIS INFORMATION!!!

Happy Ebaying!

wc-racer


Guide ID: 10000000002055120Guide created: 10/07/06 (updated 09/17/09)

 
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