One thing that I still struggle with when buying items to flip for profit is how much money I should be spending. Spending money is scary for me, especially when its way out of my comfort range. I am a notorious cheapskate so I am constantly reminding myself that –
“You have to spend money in order to make money.”
Whether I’m sourcing for items at a storage unit or a thrift store, I rack my brain for the potential profit. Usually I have to do it quickly, especially when I’m at an auction. But if I have a chance to confirm an items possible value via eBay or Google, then I will quickly whip out my phone to look it up (being as discreet as possible).
With the rising popularity of the television show, “Storage Wars”, storage auctions seem to be hotspots for quick money-making seekers. Storage units around my area usually don’t sell for nearly what they sell on in the show, however. As the show has gained success, I believe the “Storage Wars” bidders’ bank account has drastically took a pay raise as well, which is how they can afford to drop thousands of dollars on these mystery units.
There really is no answer to the question of this topic though. In order to be successful in sourcing items to resell, you have to have a good balance of common sense and courage.
Have I ever overpaid for items? Yes. But more often than not, I have underpaid. That is why I am able to do this for a living.
Considering that I only spent $90 on my last storage unit, I have been extremely hesitant on purchasing my next unit. The one that I have my eyes on is currently up to $300. After discussing it with my husband, he advised me to go for it, as long as I truly feel that it is a valuable unit. I am so thankful to have him to bounce my crazy ideas off of once in a while. He is a man of reason and I think it’s important to have that one person to be able to run things by.
So, to sum up how to decide whether its’ too much, here are some ideas to help you:
Verify the Value
Whenever possible, always check the completed listings in eBay searches for what an item has sold for previously. If you can’t find it on eBay, you can always do a quick Google search of the item.
Ease of Potential Sale
How easy would it be to flip this item? Consider the size of the item and how many people would actually be interested in it. Larger items can take a long time to sell, so make sure that you have proper storage to keep it safe until it sells.
Also, would it be easy to ship? Breakable items are items to sell that I always hold my breath and hope for the best.
Run it by Someone
Before you spend more than you’re comfortable with, you should find someone that you trust to bounce the idea off of like I do with my husband. Personally, my husband and I always run by big purchases before we commit to buying them for obvious reasons. If you’re not married, you could ask a parent, sibling, or friend that could offer a good, black-and-white opinion. It doesn’t always mean that you have to take their advice but it is always good to hear what someone else thinks.
Trust Your Gut
Sometimes, you just have to trust your gut. The longer time you have invested in purchasing items for resale, the more trustworthy your instinct becomes.
Learn to Say No
Especially when it comes to storage units, nobody wants to leave empty-handed. However, that could mean overpaying for a unit just because you want to walk away with something. There will always be more units in the future to buy. However, the more you overspend, the less chances you’ll have in being able to buy them.