Online Disc Sales. Can You Profit?

Image Courtesy of Dynamic Discs.

In this article we will discuss selling discs online, in a retail fashion. This means, you create an online store, buy a bunch of plastic at wholesale rates, market your products, and ship them to paying customers. Can someone who is interested in doing this really make a profit? The answer is yes, but it probably won’t be much and you will definitely not want to quit your day job.

The first issue is competition. There are literally hundreds of online stores for players to buy discs. There is also the big time players in the space like Dynamic Discs, Innova Factory Store, Discs Unlimited, Disc Golf Values, and more. Then take into account all the smaller players out there like our store avgdiscs.com. Can we compete? Well, not really. We won’t ever have the selection of the big players and we won’t ever be able to match their sales or specials. It’s just a matter of volume. The big players are either manufacturing their own plastic, or they are placing orders for  thousands of discs at a time. Can the average person do that? Probably not.

The second issue is margins. Margin is the difference between what you pay for the disc wholesale and the amount you sell it for. You also need to take into account time, labor, and other overhead. On single disc orders, the margins are the worse. Take a look at these figures from a reputable disc golf wholesaler.

Premium Plastic Disc –        $9.15 (Wholesale)
Shipped to you initially –     $  .40

Total cost for that disc –     $9.55

You sell it online for-           $15.99
Shipping                  –             $3.25
Packing material, labor –    $1.00

You actually sold it for        $11.74

Your profit?  $2.19 (22% margin)

Most business are not happy with a 22% margin. Does that cover your internet bill, web hosting, domain, and employee costs? Probably not.

Add in that if you sell 100 discs at that rate, you make a whopping $219.00. Although that is some extra cash, it is definitely not something you will be living on. The amount of time, effort, and the amount of competition make it very difficult for a new person or company to gain traction in a crowded online space. So can you sell discs online? Yes. Can you make a profit? Yes. Is it actually worth all your effort? Unless you’re ordering hundreds or thousands of discs at time. Probably not.
Please feel free to share your thoughts below.

*Figures based on a reputable wholesale dealer at the 25 disc minimum order rate. This is of course an observation, and not fact.

 

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