Today I would like to share my thoughts on how people can make a passive income by buying and selling items, whether it be on eBay or garage sales the principles are remarkably easy and lucrative to say the least.
The trick to buying items and then selling them for a profit is understanding the true value of the product. This means focusing on items you are very much aware of – e.g. I would know nothing about buying ladies shoes and then selling them onwards and upwards for a profit. I simply have a mind that doesn’t allow for that, nor do I want to start visiting ladies shoe shops – it may make my wife slightly suspicious.
Instead I would focus on items I do know well – like consumer electronics, gadgets, books, CDs and DVDs.
So how do you make money doing this?
For me it started when I used to sell lollies at school to my class. I once found a wholesale packet of red frogs for around $5 and proceeded to sell them at 5 cents each. Needless to say, this probably laid the basis for my future love of running a business.
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It’s about finding arbitrage points. Arbitrage is the act of buying something for less than it is worth in the hope of selling for more and profiting on the difference.
This all sounds pretty obvious I know, but we often pass up these opportunities every day.
A case study of how I got free shoes from buying and reselling
I went to General pants before my holiday to buy some new Chuck Taylor converse all-star shoes. Those simple, American looking shoes that looks great with jeans.
General pants were selling two pairs for $50 when I knew that they were worth $70 each. I bought my two pairs which I love and proceeded to buy another 2 pairs of size 9’s – a very popular size on eBay.
So not only did I get myself two pairs of shoes for $50 – I went on to sell another two pairs for $140. That means I got myself two pairs of shoes for free – in fact, the shop helped me make $90. All for 15 minutes of my time.
The trick to buying and reselling
If you try and focus too heavily on making money, it can be tricky. Instead just keep your eyes open for real bargains and hopefully you have enough experience with the product to know its actuall worth and what you can realistically sell it for into the future.
This can also work great when it comes to buying electronics, if they have buy one get one free – ensure you don’t just keep the extra item as idle junk – sell it and subsidise your initial payment.
Good luck and do let me know if you find any size 12 converse all-stars.