Personally, I think about the term "value add". I learned this when I started in the corporate world.
I only buy items, I can add value to.
It's like, you buy a board from the sawmill. If you sell it on EB, you'll make about 20%. If you sand it first, then sell it (thus adding some value to it) you'll make 30%. If you'll clean up the edges, and make sure it straight and clean on all surfaces, as well as sand it (adding more value), you'll make 40%. If you'll turn that board into a baseball bat, you'll make 100%. Turn it into furniture, and you're in the 300% ballpark.
So, to me, when I look at buying an item, I consider whether or not I can add value to it. If not...I move on. Too many other people simply flipping items.
The only exception, in my opinion, is buying in bulk. It's hard to buy 1 chainsaw, and flip it on EB and make a profit. But, I can buy a pallet of 20 chainsaw's (at a volume discount), and then flip them one at a time on EB, and make a decent profit.
About a year ago, I bought $7K worth of product in bulk. Now, I'm selling it and making about $3K/month on it....and I'll be making that $3K/month, for about the next 2 years. When I add value to this product, the profit goes thru the roof.
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