There is one tip that can take your business to the next level that we have used over and over to make hundreds of thousands of dollars in our reselling business. It is the key to our business. This one thing has made us hundreds of thousands of dollars in our flipping business.
So let’s dive into it.
One Example Where We Didn’t Use Our Tip
First, we’ll share a story where we did not use this tip. Melissa and I bought a bowling arcade on the road trip. We spent $175 on that bowling arcade. We had to pick it up with two other items at the end of the road trip. It was like eight or ten feet long, the arcade game you’d see in a bar where you slide a puck across it and hit bowling pins.
We picked it up for $175. When we got there, it was in worse condition than I initially thought. I should have walked away. We brought it back. I cleaned it up, got some pictures, and sold it for $550. By the time we shipped it out, there was no considerable return. We didn’t lose money, but we broke even after shipping and fees. And it was a big time suck.
This wasn’t at the beginning of my flipping journey; it was a year and a half ago.
What’s The One Thing To Make Hundreds Of Thousands Of Dollars?
Are you ready? Grab your pen and be ready. Your money is made in the buy. What exactly does that mean?
We were on a podcast interview the other day, and the host said, “You know who says this? Warren Buffet.”
I had no idea whatsoever. I’ve been saying this forever.
People think they make money when they sell their items, which you do make your money when you sell the item, but at the same time, the money is made by how cheap you can get the item.
If you can find an item from the trash and then sell it for $200 versus you spend $100 on an item and then selling it for $200, there is a difference in the profit. It’s better to sell an item you got for cheaper.
That’s the motto we’ve lived by since we’ve been flipping. But we’re not perfect at it. We’ve made mistakes, just like we did with that bowling arcade. My eyes got bigger than my head, and I’m like, this is cool. I love cool stuff. We sold it. And money wise it was okay. We broke even. But time-wise, I lost money on the time I spent on this sale.
Our general rule is to 10x our investment. If we spend $100, we’d want to make $1,000. It leaves us wiggle room for fees and shipping costs. We paid $175 for this and should have sold it for $1,700, but since it was in worse condition, it didn’t sell for that much.
Don’t be afraid to walk away from an item if it’s not what you expected. You don’t have to feel obligated, even if you’ve made the meet-up and the item is not what you thought it was. It’s okay to walk away.
If you don’t want to waste your time going to a meetup without knowing about the condition, ask about it ahead of time. Ask if it’s broken or has rust, and ask about the functionality and condition.
Where To Find Cheap Items To Make Big Dollars
You can look for items in the trash, but you can also find cheap items on Facebook Marketplace or OfferUp. Sometimes people just want to get rid of things.
The biggest thing is you have to be consistent with looking for items. Once you know what you’re looking for, you see things faster.
Make contacts at the places you shop. Make friends with the vendors or store managers, and maybe they’ll call you first before they put something on the floor.
So always know your money is made when you purchase the item, not necessarily when you sell it. Don’t be afraid to walk away from a bad buy.
Show Notes
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FURTHER RESOURCES
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