Selling DVDs for less than £1.67? You may be making a loss.

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With a standard 10% eBay fee, 3.4% + 20p PayPal fee, £1.24 Royal Mail first-class* postage (offered to your buyer for free), and reused postal packaging, the cheapest you can sell a DVD for without making a loss, is £1.67.
x = DVD price, y = your profit (or loss)
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x = DVD price, y = your profit (or loss)

This is the graph of y = x - 0.10x - (0.034x + 0.20) - 1.24. It shows you how much profit (y) you'll make when you price your DVD (x) at or above £1.67. (It also shows you how much loss you'll make if you did price under £1.67!) Ever wonder if selling DVDs on eBay is worth it? I've decided for now that I'd like to get at least £1.00 for each DVD I sell. That means I'll have to sell them for at least £2.82 each. I might have to bring down my prices, but here's hoping! (I'm just glad I'm not doing this for a living.)

I think a graph is a fun way to see how much money you'll actually make from an item depending on how much you sell it for. Of course, the simplified equation,
y =  0.866x - 1.44, is more useful.

I made this graph in Mac OS X's Grapher (in Applications: Utilities). Please get in touch if you'd like any help making your own graphs.

* You could offer to send it second-class, but I think people want to watch a DVD sooner rather than later.
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