Imagine this... You are watching a show with a bunch of electronic pallet pulls and all of the auctions are starting at $1.00. You see the bidding going up and up. This looks amazing! Yes, a few items are selling for $1.00 but the other items make up for it. Now... you're thinking "I can do this!". So... You have a show, and what happens? Everything sells for $1.00!
NEVER START AT $1.00 UNLESS YOU WOULD BE HAPPY SELLING IT FOR .52 CENTS!
Starting an item at $1.00 on Whatnot can seem like a great way to generate excitement and attract bidders, but is it really the best strategy? For many sellers, the truth is that starting at $1.00 can lead to frustration and losses, especially if you don't consider all the hidden costs of selling. Let’s explore what happens if you start at $2.00 instead, and what you should keep in mind before setting your starting prices.
What Happens When You Start at $2.00?
Starting your items at $2.00 gives you a bit more room to cover the various costs associated with selling. While Whatnot fees will still apply (8% for most categories, with a few exceptions like the coins category), and you’ll pay the standard 2.9% + $0.30 payment processing fee, starting at $2.00 offers a better safety net compared to $1.00 starts.
Let’s break it down:
Platform fee (8% of $2.00): $0.16
Payment processing fee (2.9% of $2.00 + $0.30): $0.36
Total fees: $0.52
After fees, you’re left with $1.48. That’s already a significant improvement over the $0.59 you’d make on a $1.00 start. And while it’s still not a huge profit, it’s enough to help you cover more of your costs.
Other Costs to Consider
While $2.00 starts might seem like a safer bet, you also need to consider the other costs involved in selling on Whatnot:
Packaging Costs: Even if you sell an item for $2.00, you’ll still need to package it securely. Boxes, bubble mailers, tape, and protective materials all add up, and if you’re not factoring these into your pricing strategy, you could be eating into your profits.
Your Own Time: Preparing items for sale, organizing shows, shipping packages, and communicating with buyers takes time. While you might not think of this as a direct cost, your time is valuable, and if you’re spending hours for minimal returns, it may not be worth it in the long run.
Label and Paper Costs: Printing shipping labels and invoices requires ink, paper, and a printer. Over time, these costs can add up, especially if you’re selling high volumes of low-priced items.
Item Purchase Cost: Don’t forget to factor in what you paid for the items you're selling. If you bought something for $5 and it sells for $2, you’re losing money before you even think about fees and packaging.
The $1.00 Scenario: How Would You Feel?
It’s essential to think about how you’d feel if every item in your show sold for just $1.00. Would you still be happy with your sales at the end of the show? Or would you feel like you’ve wasted time, money, and energy?
For some sellers, especially those who are simply looking to get rid of excess inventory, a $1.00 sale might be acceptable. If you’re in declutter mode or have items that aren’t selling anywhere else, this could be a good way to move stock quickly. However, if you’re hoping to make a profit or even just break even, consistently selling at $1.00 is likely to leave you feeling upset and discouraged.
If you think you would lose money or feel frustrated at the end of a show where every item sells for $1.00, don’t do it. Instead, set a starting price that ensures you’ll cover your costs and feel satisfied with the result.
The Unspoken Perception of $1.00 Starts
There’s an unspoken perception among buyers when they see sellers starting items at $1.00. On the surface, it looks like a great deal, and it does often draw in a crowd. People love the idea of snagging a bargain, and $1.00 starts create a sense of urgency that gets people bidding.
However, once you establish yourself as a "dollar start seller," it can become hard to move away from that pricing model. Buyers come to your shows expecting those low starts, and when you eventually decide to increase your starting prices to protect your profits, you may lose a significant portion of your audience.
While you’ll likely retain a handful of loyal buyers who genuinely love your items and appreciate your work, many of those who came solely for the $1.00 deals will stop watching once the bargains disappear. This is a critical consideration if you plan to grow your business long-term. Think about whether you want to build your brand around low-dollar sales or develop a more sustainable model with consistent pricing that reflects the value of your items.
Conclusion
Starting your items at $2.00 or $3.00 instead of $1.00 can make a significant difference in protecting your profits and covering the hidden costs of selling. Always consider not just Whatnot’s fees, but also packaging, time, shipping materials, and the cost of the items themselves. Most importantly, think about how you’ll feel at the end of the show if everything sells for $1.00. If the thought of losing money makes you uncomfortable, it’s worth reconsidering your starting prices.
While $1.00 starts can draw a crowd, it might be the wrong crowd, they also set an expectation that may limit your ability to grow in the long term. Decide whether you’re okay with that trade-off, or if it’s better to establish a pricing policy that values your time, effort, and inventory. In the end, creating a sustainable selling strategy that works for you is more important than chasing a short-term rush from low-dollar sales.nal rollercoaster of $1 auctions.
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