Mobileciti Keeps 97% Profit and Passes on 3% as Savings In Store

watwatwat on 02/06/2017 - 14:30
Last edited 03/06/2017 - 12:11 by 1 other user

Their ebay store lists s8+ as $1330 and their website $1324. I emailed them if they could do a better price if I pick up in store, and they advised they already pass on the saving in their webstore. A saving of $6..

So assuming 13% ebay fees, they will save $172.90 plus postage fees of me picking up in store instead of buying on ebay.

So out of $172.90 + postage fees they save, they pass $6 on to the customer if you buy through their web store and pick up in store.

So mobileciti passed on 3% of the profit and kept the 97% for themselves. I might as well just buy through ebay - doesn't make a difference to me (would be cheaper with cashback or coupons).

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  • Nice one baby on 02/06/2017 - 14:36
    +27

    Do you think there may be a cost in also having a brick and mortar store?

    • ronnknee on 02/06/2017 - 18:46
      +11

      Not to mention that the phone is a cost to them. Claiming that 97% of the sale as profit is pure ignorance.

      • Diji1 on 03/06/2017 - 01:10
        +5

        Not true bro they magic the phone into existence using a time portal. The time portal runs on free energy so no cost!

  • ProjectZero on 02/06/2017 - 14:39
    +5

    I'm assuming you're planning on using the discount that's on offer on Ebay… considering the discount is probably out of Ebay's pocket and not Mobileciti, that probably is the best price they can offer. I'm not sure how they live off $1330 price if the ebay fees really is 13% though.

    • watwatwat on 02/06/2017 - 14:44
      -8

      Whether or not I get any ebay discount, they're still paying the same fee.

      • ProjectZero on 02/06/2017 - 14:55
        +1

        What fees would they be paying for if they sold it on their website?

        I'm surprised they are able to offer it for $1330 on ebay if the fees really are 13% on ebay.

        • watwatwat on 02/06/2017 - 16:21
          -4

          1-2% credit card processing fee? But then they accept bank deposit. So I could do that or pay cash.

          Fee for web hosting? Well they'd pay the same fee whether I buy or not.

        • trev likes bargains on 03/06/2017 - 06:18
          +6

          @watwatwat:
          So you may be feeling entitled to have free rides on a train, tram, bus or even an airplane.

          They will be going to the destination whether you use them or not

  • HarmonicMelody on 02/06/2017 - 14:47
    +3

    Then you'd be complaining that the eBay price is $172.90 more than the in store price.

  • [Deactivated] on 02/06/2017 - 14:49
    +7

    So assuming 13% ebay fees

    I don't think ebay stores pay 13% …

  • tightarse on 02/06/2017 - 14:49
    +28

    Seriously, what's the point of this thread? Mobileciti and every other store in the land are in business to make a profit, and therefore free to structure their pricing as they wish. If the numbers concern you, simply move on and buy elsewhere.

      • Clear on 02/06/2017 - 15:19
        +6

        Have you ever been involved with a business that sells goods? I can get computer tech for several hundred dollars cheaper from my suppliers than what they sell for here on OzBargain on sale and that's from a distributor and not the manufacturer itself.

        • Clear on 02/06/2017 - 16:04

          @watwatwat:

          Businesses exist to make profit. That's fine.

          In this particular scenario, they would rather pay ebay fees rather than circumvent them and pass the savings on to me to 1. guarantee a sale. 2. make a happy customer.

        • SlayerYoda on 02/06/2017 - 16:13
          +10

          @watwatwat: Dude, you got absolutely no idea about any of their internal processes. Let me give you one hypothetical example.

          There is a cost of a brick and mortar store, and some people (clearly not you) prefer that. That's point one. But let's go further. Let's suppose, for example's sake, 10% of all sales go through the store, because 10% of customers justify the $6 in savings. If they were to make that saving $40, then 50% of their sales would start going through the store. They'd be understaffed and have to hire someone new. That's a massive cost. See where I'm going with this?

          They have costs to cover, and additional costs to consider with any change in pricing. You don't care about their side, only yours. And you get defensive when others try to tell you there's more to it than a linear relationship.

        • watwatwat on 02/06/2017 - 16:19
          -2

          @SlayerYoda:

          Like I said earlier, let's take the retail store out of the equation. I'll just pay $20 extra for shipping and they can run whatever cheap warehouse they want. It doesn't bother me; this warehouse is serving their ebay store, online store, brick mortar store.

        • SlayerYoda on 02/06/2017 - 16:31
          +3

          @watwatwat: But that's the thing, you can't just take the retail store out of the equation. That retail store is part of the whole business model and it's a way to distinguish them from Kogan, etc.

          That store has an overhead that has an effect on all sales (because it doesn't just sell stuff, you can go there for warranty and returns as well).

          You hit the nail on the head when you said that having a store doesn't bother you personally. That's all there is to it - you personally can't justify the overhead cost to running a brick and mortar store in addition to an online one. But you can't pretend to be able to quantify it.

        • watwatwat on 02/06/2017 - 16:34
          -5

          @SlayerYoda:

          I don't see the relevancy of this. Either I buy it form ebay or buy it from their website. I might as well just buy it through ebay and they lose out the extra profit.

        • SlayerYoda on 02/06/2017 - 16:43

          @watwatwat: No, somehow I'm not surprised you don't. But I'm also fairly sure you're just trolling at this stage, so good luck with that.

        • t_c on 02/06/2017 - 16:52

          @SlayerYoda:

          I cant believe OP still doesn't get it.

      • Diji1 on 03/06/2017 - 01:11

        people can do whatever they want

        In this case they can when it comes to setting their prices.

    • watwatwat on 02/06/2017 - 15:59
      -5

      "every other store in the land are in business to make a profit" - did you learn that from ebay?

      • tightarse on 02/06/2017 - 16:10
        +2

        Why did you edit your comment?

        "every other store in the land are in business to make a profit" - yes, businesses discount by 10% and after everyone buys, you discount by 15% off and piss off everyone. Good learning, grasshopper.

        I didn't discount a thing lol. You're barking up the wrong tree.

        • watwatwat on 02/06/2017 - 16:18
          +1

          Why did you edit your comment?

          I didn't want to sound too mean.

    • imahapyboy on 03/06/2017 - 10:46

      agreed baby!

  • whooah1979 on 02/06/2017 - 14:50
    +2

    You passed on 3% of the profit and keep 97% for yourself!

    Not happy? Vote with your wallet. Buy it from ow.

  • pantsparty on 02/06/2017 - 15:00
    +9

    What is the point of this rant? A store wants to make profit? Heaven forbid! If you don't like how they do things, but from someone else?

  • kywst on 02/06/2017 - 15:06
    +2

    OP is probably a flat-earther or 9/11 truther … just keep cherry picking figures to suit your assumptions and everything will be just fine.

    • Diji1 on 03/06/2017 - 01:13

      You round earth shill, how much are they paying you man!

  • Ryanek on 02/06/2017 - 15:11
    +14

    Your sense of entitlement is ridiculous.

  • Clear on 02/06/2017 - 15:21
    +12

    Coles are selling carrots for 40c each how dare they make profit on the carrot. I can buy 2000 seeds for $1.50 and grow them myself.

    • Fiximol on 02/06/2017 - 16:47

      Just wait till amazon gets here!

  • QW3RTY on 02/06/2017 - 15:31
    +5

    So assuming 13% ebay fees, they will save $172.90 plus postage fees of me picking up in store instead of buying on ebay.

    Since when did rent, utilities, rates, taxes and staff costs equal $0 per annum?

    • watwatwat on 02/06/2017 - 15:46
      -3

      What is your point? I'd just buy it from ebay and they wouldn't make 1 cent more.

      So the decision is do they want the money going to ebay or do they want the money going to me to encourage me to buy it? They'd rather pay ebay.

      That's fine. Businesses can do whatever they want.

      • kywst on 02/06/2017 - 19:02
        +1

        The cost of doing business, especially business to business, is often tax deductible.

  • nocure on 02/06/2017 - 15:33
    +8

    What bothers you most about OzBargain?

    This thread…😔

  • pkc on 02/06/2017 - 15:50
    +2

    Wtf are you smoking?

  • tomleonhart on 02/06/2017 - 15:56
    +10

    Can't decide if OP is:

    • a troll
    • an id*ot
    • a cheapskate
    • a socialist
    • or all of the above
  • Baebs on 02/06/2017 - 16:02

    http://i.imgur.com/M2bZq.gif

  • Nutrino on 02/06/2017 - 16:42
    +1

    You've got a bit of an attitude.

  • Rizzy on 02/06/2017 - 22:27

    …..just go on gumtree and get one. I got one for $1000 brand new and sealed 64GB S8+ with actual samsung tax invoice and warranty.

    P.S. Samsung's making a profit on the phone as well. They are so selfish..

  • quitram on 02/06/2017 - 23:06
    +1

    The worker who emailed you back probably had little to no authorisation to give out discounts to online orders. The hassle of asking the higher-ups for permission probably outweighs their fortnightly paychecks. Usually the ones who answer your emails just want to clock off at 5pm, and will not care enough to go out of their way to give discounts to self-entitled customers just to make a tiny bit more profit for the company.
    But usually at the end of the day, it depends on how easily it is for the staff to offer you the discount.

  • justinh93 on 03/06/2017 - 00:02
    +1

    I feel like you haven't run a business before. You are taking a very rigid view on this and assuming you see know 100% about their business.

    There could be many reasons why they won't lower the price.

    1. They need to hit certain ebay targets to maintain their status/discounts, i.e. feedback/sales.
    2. Time for organising pickup is usually greater as we need to serve you when you come in as opposed to just labelling the box.
    3. The pricing on the website has built in their average adwords spend etc.

    This thread is pretty pointless, just go get the best deal you can. Why are you complaining, they are confident in their pricing and business. If they were just starting out with 1-200 feedback maybe being more flexible makes sense, but after a while its about having the right processes and sticking to it.

  • ronnknee on 03/06/2017 - 01:19
    +1

    This is why we need a voting system for forum posts too.

  • [Deactivated] on 03/06/2017 - 04:51
    +2

    EBay stores do not pay a 13% fee. Fact.

  • johnno07 on 03/06/2017 - 06:44
    +2

    You seem like an angry guy, OP.

    Apparently ignorance is not bliss.

  • vincent on 03/06/2017 - 07:40

    The maximum eBay fees in that sellers tier would 4.8%, they may get a discount based on volume on top.

  • fruxo on 03/06/2017 - 09:03

    So many things wrong with this post, I don't know where to begin.

    They have an actual brick and mortar store. The price in the store is the base price. They then additionally pay money to ebay and only charge you $6 for the service and they absorb the difference (if any) themselves.

    Using your numbers and logic, they make a 97% loss! What more can you ask for? Do you want them to drive to your place and give you the phone for free?

  • drsplodge on 03/06/2017 - 09:21
    +1

    Can we delete this thread?…..

  • srnoz on 03/06/2017 - 09:44

    OP, Regardless of their mode of sale, they still have a cost for the sale (I mean for the sale process).

    Similar to the cost of selling through ebay includes ebay fees, cost of selling through their online store includes cost of maintaining the website and more. It may or may not be less than ebay fees.

    So we cannot assume that they got no cost if you are buying it from their website.

  • No ONE on 03/06/2017 - 11:10

    You lost me at your calculation buddy!

  • Moderatorscotty on 03/06/2017 - 12:10

    The discussion has gone off-topic. Thread closed.

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