Posted by forex at 7:30 AM
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1. Start with a little capital. Shop for items that are close to your location, so you don't incur additional expenses of shipping or going to pick the items up. It's good to start by purchasing items you are very familiar with, so you can quickly evaluate the quality and make an accurate estimate of the price you'll be able to get when you resell the items. Don't purchase something at a cost close or equal to the price you intend to charge when you resell. Look for low-priced auctions and set a bid limit for yourself so you have a difference of at least 20 percent between your purchase price and what you intend to sell the items for.
2. Purchase items you can move quickly. Sometimes this is a matter of guesswork and instinct; it's definitely not a science, but there are some common-sense guidelines. Don't purchase things you know nothing about, have never heard of or wouldn't buy yourself. You've got to have some knowledge and passion in order to resell these items. If you think you can sell the items, make a few phone calls to potential buyers and ask if they are interested in purchasing. If all you get are negative responses, pass on it and find something else.
3. Plan on storage. You want to resell the items quickly, but there is inevitably some turnaround time. Have a plan for where you will store the items you purchase as you connect with buyers, agree on a price and get the items delivered. If you have a garage, workshop or basement, it might be ideal. Alternately, you could rent a mini-storage unit. Be sure that the location you choose, whether part of your home or a rented unit, is weatherproof and secure.
4. Sell auction items at retail to individuals or at an increased wholesale cost to businesses. You will get a greater profit when you sell at retail to individuals, but you will also have to make more sales in order to clear your inventory. Selling to businesses means a reduced profit but a quicker turnaround. Often a combination approach works best. Set up retail space, either with an online website, at a craft fair, as part of a bazaar or flea market or with a storefront, and display and sell your items for your determined retail cost there. Don't charge too much; your retail price may have to be significantly lower than the retail price for the same type of item, brand-new, at a box store. In order to sell to businesses, set a wholesale price that is 10 to 15 percent above what you paid for the item. Offer items in bulk and create incentives such as free delivery to help businesses choose you over another supply option.