Originally Posted by jgill79
Right but you also just made 100% profit on your initial investment and covered all your costs (if you count your time and effort as free, which many small business owners do). Most businesses would be exceedingly happy with that. That said, a product is worth what the market will bare, and if you can get more for it, there's absolutely no reason you should be shamed for doing so.
100% profit sounds good in the abstract. However, the opportunity cost of the hour it takes to make that profit might be higher doing something else. For example, I pay my lawn guy $30 per week. Takes him an hour. factor in mowers, gas, oil, trailer, he's making $10-12 an hour.
Not arguing your point, but I think that's why many people here have minimum deal targets. Most part-timers aren't set up to do high volumes of low margin deals. If you're measuring, shipping, photographing, tracking you really have to factor in the additional time you're not available for family, friends, other hobbies etc. Plus the fact that half the spouses are pissed that boxes and bags of clothes creep into all parts of the house. Most are really motivated to show a reasonable profit so the support continues.
Me personally, I love learning new things. I'm enjoying the occasional thrift hunt. Learning what sucks and what doesn't. But when I sell all my own personal stuff that I can't consign, I'll move on to something else I want to learn. But still, making money is how you keep score, so for now, I want to get better, I want to learn more, and I want to have fun. So Far, So Good. If I were going to go after this big time, I would look for pallets of close out items, contract an agent in the garment district for samples or some such, hire an assistant to manage the postings, shipping and email, and I'd focus on finding stuff exclusively.
I look at this like I look at playing the guitar or playing golf. I can enjoy those at my own level of competence, without comparing myself to Tiger Woods, Eric Clapton, or Spoo, Brian, or Wes. These guys have taken years to develop and earn the knowledge, the skills, their online reputations. Rather than withhold these abilities, they generously contribute to the online learning clinic that this forum has become for so many of us.
So when a successful guy like Wes, with 400 items for sale, an acknowledged finder of great things, and a great stager of his items tells me he starts at 3X cost plus fees and shipping, I take that as a baseline assumption. So now when I'm evaluating a purchase, I look at it and ask myself if I have an 80% chance of getting a minimum of 4x (allows for fees and shipping) the cost. If I don't think so, then I shouldn't buy it. Even something decent that would require more of a time investment (like getting a specific brand of button and sewing on) if it is only 4X the cost, its probably a pass. On something like that, the opportunity cost may move my thinking to 5X unless its a really expensive item that will be worth the time.
The Proof? all you guys have a pile, or boxes, or bags of stuff awaiting repair that you're delaying because you have easier stuff to post and turn. If it was a Kiton jacket that needed a $30 repair for you to make $300 - $400 profit, it would be at the top of the list.
Again, my opinions only, based on observations.