Tired and Frustrated with Shipping? - Let me share a story

[DoNotInsertIntoMouth]

So I here people mention this a lot and I totally understand -

 

1.  Frustrated with Idiot buyers 

2.  TIred of going to the post office everyday.

3. Want to smash your tape dispenser

4. Done with printing labels and paying stupid USPS inflated prices.

5. Done with USPS losing packages

 

And more and more.

 

So I thought I would share what is helping me through this on the off chance it might help someone else.

 

I am a candid guy - probably too open sometimes - but in January I was really really struggling with this. December burned me out some and made me realize that I was frustrating myself to much. 

 

This was complicated by the fact that I was diagnosed with Depression several years ago. I have, through medicine and being lucky to have a fairly good life, conquered it for the most part. However, when I get tremendously stressed out, frustrated, or angry it causes a relapse which is tough to deal with.

 

So I did a couple of things to figure this out because I knew I didn't want to quit. And I hope some of these things help you guys dealing with the same stuff. Just because you love something doesn't mean that its not capable of causing you serious grief.

 

1. I took a break.

 

This was imperative. Not to just give myself a little time away, but to rethink what I was doing and accomplish the rest of the points. I was always afraid to put the store on vacation because I am losing money. Its an easy thing to consider though - How much money do you lose if you have to quit because you can't handle the stress?

 

2. Limit the stress factors.

 

This one is tough, but probably the second most important to breaks. I sat down and actually wrote down everything that pisses me off about selling. That in itself was stressful, but I said to myself "what do I have control over here?". 

 

One thing I did was got Ebay notifications on my phone - every sale, message, etc. The thing is, I have another job. Everytime I get a message, I would immediately look at it and answer it. I got to the point where every time I got a message, my phone would buzz and I would think "Dammit some idiot buyer is mad about something." or "USPS lost something again". Several times a day I was stressing myself through diverted attention from whatever I was actually doing. So I eliminated the notifications. 

 

Instead I set times for myself when I would check messages, sales, etc. I made a routine. I check in the morning before work and after when I get home and answer everything then. Otherwise I don't even pay attention to it.

 

Mad buyers is another issue. I say to myself - "People will be mad - let it go". So now i just apologize and do what i can to help them. I NEVER look at my feedback rating anymore. I trust that if I do things right no one is leaving me a negative. I used to check it everyday. Not worth it.

 

Obviously there is more here, but to be brief (lol, right?) PM me and I would be happy to tell you more stuff I changed for this.

 

3. Improve Efficiency 

 

Things are a lot less stressful and a things don't go wrong as much when you are efficient. I now use small bags for all my minifigures so they can't lose their weapons, etc. I bought storage units to store and separate them with labels so they are easy to fine.

 

I bought a label printer which has been amazing. I streamlined my process of packing. I changed my opening and parting out sets routine - I only do it on the weekends so I don't do it while I am tired from my normal job.

 

4. Take Better Records

 

Tax time is pretty stressful no matter what. But doing it once showed me how I need to take down documentation for the rest of the time I do this. Next years taxes will be much easier and that makes me feel a lot better about the whole ordeal.

 

5. Find ways to make the stressful parts more fun

 

I hate the packing - especially if I have like 30 packages to ship. So I had to find a good way to make it so after doing it I didn't feel like I wanted to punch through a wall.

 

I am not ashamed to say, mine is music. I am a musician and obviously love music. I found that if I am blasting Led Zeppelin during packing, I don't hate it near as much. I do not pack without music playing anymore at all.

 

I only part out sets while watching some of my favorite shows: Seinfeld, Workaholics, Law and Order, etc.

 

6. Be Cleaner

 

I absolutely believe - a cluttered work space is a cluttered mind. At work people make fun of me because my work area looks like ground zero from a zombie movie. 

 

So I have changed the way I work and the space I do it in. It is MUCH less stressful to have plenty of space and have a clean area. My solution was to put built lego sets in it. I do not clutter my lego sets.

 

 

There you go people. Long-winded, but I felt like I should share it. PM me if you have anymore questions or if you are feeling done with things. I know how it goes and believe me - as much as you feel like you can handle it, that feeling is a sickness no different than working with the flu.

 

Its just mental instead of physical.

 

[Jackson]

Which label printer do you have?

 

I also turned off my phone notifications.  They got annoying fast.

 

If I find myself getting bogged down with too many orders, I raise prices so either people don't buy as much or I make more money.

[DoNotInsertIntoMouth]

Which label printer do you have?

 

I also turned off my phone notifications.  They got annoying fast.

 

If I find myself getting bogged down with too many orders, I raise prices so either people don't buy as much or I make more money.

 

Raising prices is a good one. I think there is a sweet spot for everyone per day. my limit is about 15.

 

My Label printer - http://www.amazon.com/DYMO-LABELWRITER-Printer-1752264-Software/dp/B0027JBLV4/ref=sr_1_2?ie=UTF8&qid=1395506942&sr=8-2&keywords=dymo+450&tag=brickpick-20

 

Its on a good sale today, worth a buy.

 

Labels - you just need 99019 Dymo compatible. 

[StarCityBrickCompany]

Raising prices is a good one. I think there is a sweet spot for everyone per day. my limit is about 15.

 

My Label printer - http://www.amazon.com/DYMO-LABELWRITER-Printer-1752264-Software/dp/B0027JBLV4/ref=sr_1_2?ie=UTF8&qid=1395506942&sr=8-2&keywords=dymo+450&tag=brickpick-20

 

Its on a good sale today, worth a buy.

 

Labels - you just need 99019 Dymo compatible. 

 

Yes, raising prices works well (If it sells too quick - you priced it too low). I know when you first start selling, you want to make a lot of sales - so lower prices works great. But once you get more established and grow the business, there's no reason why you have to have the lowest price on everything.

 

Making as much money, as quick as possible - isn't always for the best. Remember, we are dealing with an item that will generally increase in value - so if you plan on continuing to do this, there really is no rush.

[lpj8]

Some great ideas and tips brought up. Thanks for sharing!

Sent from my iPhone using Brickpicker

[Ciglione]

Really interesting and helpful. Thanks.

[seapotato]

Good tips. Luckily I haven't started selling in large volumes yet so hasn't happened to me.

[Anakinisvader]

The "cha-ching" of the EBAY app is like music to my ears. I like hearing it all day everyday. I think one of the biggest stress factors is ROI (return on investment). If you aren't getting at least 50% return you are working and stressing for nothing. We aren't Walmart. Margins must be higher to survive. This is why so many people come and go out of the collectible/retail markets. They work themselves to the bone for what? 10%-30% ROI. Is it really worth it? I've said it multiple times: "If your money isn't working hard for you --- you will be working hard for your money"!!!!! Sing it like Donna Summer.

[legoman12323123]

The "cha-ching" of the EBAY app is like music to my ears. I like hearing it all day everyday. I think one of the biggest stress factors is ROI (return on investment). If you aren't getting at least 50% return you are working and stressing for nothing. We aren't Walmart. Margins must be higher to survive. This is why so many people come and go out of the collectible/retail markets. They work themselves to the bone for what? 10%-30% ROI. Is it really worth it? I've said it multiple times: "If your money isn't working hard for you --- you will be working hard for your money"!!!!! Sing it like Donna Summer.

 

50% return even at discounted sets parted out is hard to do ( even harder when selling sealed sets) .. esp with all them fakes . More realistically you are making between 10-15% after all fees. So that cha-ching sound isnt much money you are making. Every $100 in net sales .. only about $10-$15 is really profit. Sad most people dont know how to calculate operating cost and expenses correctly on this forum .. they are prob making next to nothing and dont even realize it. lol

[Anakinisvader]

50% return even at discounted sets parted out is hard to do ( even harder when selling sealed sets) .. esp with all them fakes . More realistically you are making between 10-15% after all fees. So that cha-ching sound isnt much money you are making. Every $100 in net sales .. only about $10-$15 is really profit. Sad most people dont know how to calculate operating cost and expenses correctly on this forum .. they are prob making next to nothing and dont even realize it. lol

Actually, I do make a 50% return, at least, after all expenses and operating costs are accounted for. I lived through the sports cards days and learned the hard way. It is hard to do but you have to learn patience. Not everything is going to be a 41999 right off the bat (sorry I brought it up, please don't lock this thread). I don't buy at retail or 10% to 30% off because there isn't enough meat on the bone to make a decent profit. I don't sell cheap and I learned long ago not to waste my time unless I see $$$$$$. To each their own but I like to get compensated for my time.

[DoNotInsertIntoMouth]

Its to each their own - but I am more the type who calculates everything BEFORE a sale. I limit bad purchases, limit low ROI and then I don't calculate it afterwards. If you trust yourself doing it right, you will be fine.

 

This takes a lot of pressure off me. I saw what I made last year at tax time - it was about 28% ROI and I was happy with that. It will be much higher this year as I had a lot of loss last year.

[Jackson]

Sad most people dont know how to calculate operating cost and expenses correctly on this forum .

 

Can you show how you calculate operating costs and expenses?  I'm not being a d*ck; I'm curious to see how others calculate these things.

[Anakinisvader]

Can you show how you calculate operating costs and expenses?  I'm not being a d*ck; I'm curious to see how others calculate these things.

And remember to show your work. It counts for half your grade.

[Veegs]

50% return even at discounted sets parted out is hard to do ( even harder when selling sealed sets) .. esp with all them fakes . More realistically you are making between 10-15% after all fees. So that cha-ching sound isnt much money you are making. Every $100 in net sales .. only about $10-$15 is really profit. Sad most people dont know how to calculate operating cost and expenses correctly on this forum .. they are prob making next to nothing and dont even realize it. lol

 

I have to chime in, too.  I won't sell for less than 50% after fees/shipping/taxes, etc.  It isn't worth my time and I don't ship as much volume as others, and I don't need to flip money to re-invest (stupid other three jobs - plus being a parent).  Selling sealed sets has been much more lucrative (for me) than parting out, though I've tried both.  If I only only made $15 on average for a $100 sale I'd quit and get another job roofing in the summer with my brother-in-law.  That is a crappy profit margin.

[Fcbarcelona101]

Same with me...currently running a 55% ROI and still need to include some minifig lots. It all depends on your strategy and long term objectives.

[DoNotInsertIntoMouth]

Same with me...currently running a 55% ROI and still need to include some minifig lots. It all depends on your strategy and long term objectives.

 

Yeah - my parting out I only want to carry me until I have enough capital to do only sets. 

 

But you can't measure everything in ROI. Some of the reason I can sell sets for so much is my feedback rating, Seller ratings, etc. and the minifigs really help that. And it makes my store look badass.

[justafrog]

For the LEGO, Minimum 3x gross or Minimum 2x net

(and then I pay taxes on the result, of course)

 

The book business is actually higher profit until I get to figuring in labor costs (paying myself and my staff), and then the LEGO slaps it around and makes it its prison "friend" - even part sorting, part filing, and part pulling, time consuming as those all are, pales in comparison to creating unique eBay listings for 600 or more book listings per month.

 

I don't know if any of my eBay friends here went from a OOAK to a multi-quantity business model, but I am pretty much ready to weep with joy that we're in the process of it.

[DoNotInsertIntoMouth]

For the LEGO, Minimum 3x gross or Minimum 2x net

(and then I pay taxes on the result, of course)

 

The book business is actually higher profit until I get to figuring in labor costs (paying myself and my staff), and then the LEGO slaps it around and makes it its prison "friend" - even part sorting, part filing, and part pulling, time consuming as those all are, pales in comparison to creating unique eBay listings for 600 or more book listings per month.

 

I don't know if any of my eBay friends here went from a OOAK to a multi-quantity business model, but I am pretty much ready to weep with joy that we're in the process of it.

 

How the heck are you gonna manage a 1M piece Bricklink store. I guess that is what scares me. lol. 

 

How do you calculate taxes on that?  Averaging I would assume?

[justafrog]

We have a really, really good inventory system in place now - I created and scratched like four or five of them, between me and my oldest daughter and my husband that is, and now we're very happy with the speed and accuracy of filing and pulling orders (we're at about 56,000 parts now, so enough to be able to see that it works and is pretty much infinitely expandable).

 

And yes, we figure our retained inventory for taxes on average - we know what it costs us (on average) to buy each piece, we know how many pieces we have left in stock each Jan. 1, so it's actually a really simple calculation.

 

And 1 million parts is so last year's goal. Keep up!   Now I want at least 3 million (biggest in the U.S.) and I'm eyeing 10 million (biggest in the world), but don't tell Mr. Frog about that second goal, he might follow through on his threat to have me locked up somewhere padded and put under medication and close observation. 

[imirish11]

In one year,

 

If I spend $250K, and earn a 20% ROI

 

-or-

 

If I spend $50K, and earn a 100% ROI

 

Both cases, I've devoted 1 year to earning $50K.

 

As you can see, ROI takes a back seat to net income earned per unit of time.

[Guest brickcrazyhouse]

if you're spending that much on LEGO you have a problem. A great problem but a problem non the less

[StarCityBrickCompany]

I am not sure why people have such low % returns (other than if they are flippers). I have been at it for many years (which must help), & while I sometimes sell items that are currently available, I mostly look to sell only out of production LEGO (where the returns are much greater).

 

There is no doubt that the values on recently retired sets don't return the quick profits the way that they once did - I suppose that would also limit the returns for newer investors.

[legoman12323123]

Actually, I do make a 50% return, at least, after all expenses and operating costs are accounted for. I lived through the sports cards days and learned the hard way. It is hard to do but you have to learn patience. Not everything is going to be a 41999 right off the bat (sorry I brought it up, please don't lock this thread). I don't buy at retail or 10% to 30% off because there isn't enough meat on the bone to make a decent profit. I don't sell cheap and I learned long ago not to waste my time unless I see $$$$$$. To each their own but I like to get compensated for my time.

 lol try to make a living selling at 50% profits ( I do this fulltimr currently, making like $25k-$30k a month in net sales via ebay/bricklink/amazon, My profits is about 30% my total sales currently , which isnt bad not complaining) .. you prob raise your prices and get 5-10x less sales than someone who prices his items at a lower price. I rather sell 10 items at $3 profit and make $30 in a given timeframe than sell 1 item at a higher price for $6 dollar profit. Just saying.

[Stevenplays]

Considering that I really don't sell sets as of yet, hope to do soon, this again is just another topic on how I can be more profitable. Thanks OP!

[legoman12323123]

In one year,

 

If I spend $250K, and earn a 20% ROI

 

-or-

 

If I spend $50K, and earn a 100% ROI

 

Both cases, I've devoted 1 year to earning $50K.

 

As you can see, ROI takes a back seat to net income earned per unit of time.

 

 

According to your logic .. all major outlets should downsize their store why buy up 5 million dollars of inventory in a store at 20% ROi .. why not downsize to 1/5 the size and only sell things that net 100% ROI? Its not as easy as it sounds .. I highly doubt you are netting 100% ROI on a 50k investment in only a year. Assuming 100% ROI you would have to be selling your items at 120% in order to cover fees, labor, shipping, ect .. If you are pulling that off .. thats amazing

 

if you could spend only 50k and net a 100% ROI on your initial investment of 50k and double that in ONLY a year .. you are a financial genius you should be dabbling in stocks not legos.