Instant Profits – Buying And Selling Used Items
Buying and selling used items is one of the easiest ventures to start. There are so many ways that this business can be run successfully that it’s almost impossible not to make a profit. This is one area where your success is truly limited by your creativity and drive.
The idea behind buying and selling merchandise is that you search for particular items at a low price and resell them, making a tidy profit. You must have the ability to recognize a deal when you see it. Your profit depends on this.
In order to get started you’ll need a little seed money. Even if you’re a little short on cash, you can start small and eventually start buying and selling higher ticket items. That’s the beauty of this business: you can start small, perfect your technique, and then scale it. Your income potential is only limited by your imagination.
Here are some of the most common places to find stuff to buy:
Yard Sales
One of the easiest ways to get started in this business is by frequenting all the local yard sales in your neighborhood. Make it a habit to drive around and visit several locations every weekend. While you’re not going to find many gems amongst the clutter that most people try to get rid of, you will eventually stumble upon something that is truly undervalued and can fetch a much higher price if sold in the proper venue. The key here is to be consistent and make sure you start early in the day while the good stuff is still available for sale. Try to strike a deal with the seller for a volume discount or you could simply haggle over the price. Just don’t push your luck if you already know you’re getting a great deal. Why would you want to haggle over an already unbelievable price anyway?
Unless you are experienced in buying and selling merchandise, or you know a lot about the value of antiques, there is a chance that you’ll be taking a risk when you buy some items. However, you’ll eventually get better at this and be able to spot true value in most instances. On a positive note, yard sales and garage sales won’t be selling expensive items. Even if you miscalculate and wind up not being able to get all your money back, you likely won’t be losing much anyway.
Auctions
When you’re ready to move up from yard sales, you might want to try your luck at auctions. These can be a virtual gold mine if you know what to look for. The great thing about auctions is that the item can sell for much less than it’s worth if there is no interest. If you have knowledge about the price of certain items and they don’t garner any other bids, you can clean up.
Most commonly, you’ll run across two types of auctions: liquidation and estate.
Liquidation auctions are usually conducted by a bankruptcy trustee. The proceeds will go towards paying off the creditors of the former business. You will likely be bidding against other business owners that are price savvy and are also there to make money. Thus, much of the merchandise will be sold at market prices. Still, there will be items that won’t attract any bids and if you can figure out a way to resell them for profit, you can get some amazing deals. Keep in mind that the trustee simply wants the merchandise liquidated. Most often, these auctions are listed in the newspaper several weeks before the actual event. Just make sure that you register early.
Estate auctions are normally carried out to liquidate the assets of a deceased person. Generally, the heirs will hire an auction company to sell off the contents of a house and personal possessions. Quite often, you will find amazing bargains in such a venue due to the fact that the true value of many of the items will not be known. If you are good at pricing antiques and such, you can confidently bid on items that attract no other bids. If need be, you could take someone along that knows more than you do on the subject. A word of caution: Don’t get caught up in a bidding war. If an item comes up that seems to attract many bids, take a pass unless you know for certain what the item is worth. The real money is made in the items that fly under the radar and are missed by everyone else.
Antique stores
While you may think that finding under-priced items in an antique store is impossible, you may still stumble across items of interest. Although this is indeed a tough nut to crack, if you have above average knowledge in antiques and collectibles, you may find something worthwhile to purchase. Unlike yard sales and auctions, you also get a chance to examine the piece, look for any markings, research the item online, and then returned if you determine that it’s under-priced. Although most antique dealers are very knowledgeable when it comes to pricing such items, you may find the odd gem if you’re persistent and you do your research.
Selling your inventory
Depending on the type of merchandise (and quantity) you have for sale, there are some venues that are custom made for making a quick sale (and profit). Here are some of the most common ways to sell your wares:
Flea market
Rent a table or booth at your local flea market. The biggest advantage of doing this is the fact that you’ll be able to expose your items to high traffic and not have to commit yourself for an extended period. You can rent by the day, weekend, or month. The biggest disadvantage is that you’ll need more than a few items to set up a reasonable display. A decent inventory will speak volumes about your credibility. People will want to browse through your items, and if you’ve only got a few things to sell, you’re not going to make much money. A flea market is ideal if you’ve built up a decent sized inventory.
Classified ads
Running a small ad in your local newspaper is likely to attract a few potential buyers. In some publications, you may even be able to place a free ad under items for sale. Of course, this isn’t meant for businesses and you’ll likely only be able to do this occasionally. Even so, the price for a tiny classified ad can be justified if the item brings you a decent profit.
Online classifieds
Place your items on sites such as craigslist.com, kijiji.com, or Usfreeads.com. It’s completely free and can give you some very good results if you write a compelling ad and headline.
Ebay
Auction sites such as eBay will give you maximum exposure and almost guarantee that you’ll sell your item. The biggest drawback is that, unless you’re selling a very in-demand product, you won’t get nearly as much as you would using other methods. If you’re selling in a highly competitive market (there are more sellers than buyers), you’ll be selling your items for next to nothing.
Buying and selling used merchandise can be very profitable if you know what to look for. In fact, I still do it once in a while myself. There is no doubt in my mind that a person could make a livable income doing this if they put forth a decent effort.
One of the greatest things about this business is that it’s scalable. You can start with a single item and work your way up as you gain confidence and accumulate some capital. Don’t forget, however, that you need to claim all your sales and expenses no matter how small – just like any other business.
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