I see signs that the United States is giving up its place as industrial leader of the world. I see a lack of vision, and a decrease in employment opportunity vs. reward for that work for more and more people. As third world nations emerge, they bring with them an eager workforce eager to work for less than Americans. This would require great vision and imagination plus a concern for our own workforce inorder to remain competitive. I don’t see any of this.
The rich get richer and the poor stay poor. Wages are going down. In the past, a good job could make one rich, but it is becoming less and less important to the goal of wealth.
Even in the most economically depressed countries, skill and discipline in buying and selling can make one wealthy. So this is our goal.
You don’t have to have a lot of money to start. Find something as common as aluminum cans, sell it as scrap, then use that money to buy something cheap that you can sell for more. Sell something that you don’t need and use that as seed money. You can grow your way into large deals so long as you remember your cost includes acquisition expense, handling, transportation, and delivery costs.
Adjust your margins to fit your experience. Your margin is the spread between what you buy it for and what you sell it for, including all expenses. Be honest in your accounting. Low price items require larger margins than expensive items.
For thousands of years traders have made fortunes moving merchandise to the far reaches of the world, but today, you can reach almost anywhere electronically in a moment. Ebay and other auction sites like that make the whole world your market.
If you buy at the right price, your item will almost sell itself. Buy cheap! Sell dear!
Research what people are wanting. Trends change. If you acquire something but the market shifts before you sell it, you’ll lose money. Don’t agonize over bad deals. Mark your item down and move it out. Learn something then move forward to the next deal.
See what is hot on ebay, or 50.lycos.com, or ubercool.com. Buy and sell what you are most interested in and know about. If a search on ebay shows lots of auctions with no bids, pick something else. Do a wildcard search on ebay for “a” or “the” in price ranges equal to the range of capital you are comfortable risking. Look through those items for something that sparks your interest.
Develop your market sense; use your intuition. The better you are at picking items in demand the faster you complete your deals.
How to price your items? The market prices your items for you. What you pay for it doesn’t matter. What matters is what the market is willing to bear. If you pay too much you lose. If you pay very little, the profit is yours. Price according to you what the market is willing to pay. You want to acquire at a price low enough to allow you to price slightly below market.
You have more control over what you pay for something than what you sell it for. You can’t sell it for what you want; you sell it for what someone wants to pay. When you are buying, you are the one in control. Make sure you buy cheap!
As you are building your capital, your time is a consideration but you can’t always price your time when building investment capital. As you grow more skilled and your investments larger, you can build your time spent into the deal.
Don’t overbuy! Consider your available storage space and work with what you have. Turn your inventory! Get rid of your mistakes, even if you have to give them away. Mistakes staring you in the eye erode your confidence. Get them out of your sight and move forward.
Establish a market protocol. Maybe you’ll try to sell large ticket items locally through a classified ad. If that doesn’t work list it on ebay. If that doesn’t work try a free listing on craigslist. Lower the price until it sells. Develop backup markets. Backup your backup. If you lose money, learn something from your mistake and be more careful on the next deal.