How to Buy for Resale

Check your closets, basement, attic, garage, shed, boxes, crates, storage areas, etc. Repair, refinish and restore when necessary.

Also, barter and swap & exchange with people, firms and organizations. Start with those you know including friends, suppliers and current customers.

Hold on! Before you buy anything see if you already have what you need.

1. Try not to buy or prepay
   • Pay as you sell. Set up "consignment" agreements with other sellers, manufacturers and merchants
   • Use barter, swap & exchange, in-kind agreements, transaction payment services
   • Co-op: team up with people you know, organizations, businesses, churches, other sellers, etc.
   • Be a "virtual" seller. Avoid inventory hassles by using just-in-time tactics, the Internet, mail order, 800 numbers, etc. Some sellers will even "drop" ship for you
   • Sell what you have and everything you can get your hands on

2. Don't overpay! Remember you must make a profit when reselling

3. Keep the price down
   • Take advantage of bulk buying discounts, overstock and sales of all kinds
   • Don't forget about auctions, liquidations and foreclosure sales – this includes failed e-tailers like eToys, retailers like Ames, Service Merchandise, Montgomery Wards and Lechters and companies like MCI, Enron and Consolidated Freightways
   • Buy direct. Cut out the middleman
   • Consider factory seconds and "irregular" goods

4. Delay payment
   • Use methods like installment payments, credit and consignment

5. Can you actually sell what you buy?
   • Be careful. Incredible once-in-a-lifetime "bulk" discounts can quickly turn into a garage or warehouse full of unwanted junk
   • Is there "popular" demand for it?
   • Have you done enough to publicize and promote the sale?
   • Is the sale scheduled at an appropriate time? What does it compete with?

6. Get the right type of items
   • Does it fit in with other items?
   • Does it match the theme of your sale?
   • Will anyone be interested in it or more importantly buy from you?

7. Get the appropriate amount of items
   • Too many and you're stuck with leftovers. What will you do with them? Where will you store them (how much will it cost you?)? Will you ever recoup your investment? That's why it's best not to buy or prepay
   • "Less is more." But too few and you don't make any money. You also kick yourself for not having more to sell

8. If you buy items that need restoration, repair or refinishing make sure it can be properly done and at a reasonable price. Ask yourself:
   • Can you accurately assess what needs to be done? Mistakes can be costly
   • Are you capable of doing the work? Have you ever done it before?
   • Do you have the time, tools and money to get the job done?
   • If you won't do the work who will, what will they charge, will they do a good job, can you depend on them, etc.?

9. Get advice from experienced resellers (online, retail, neighborhood, books, libraries, etc.)

10. Thoroughly check out sellers before you buy from them. Make sure they:
    • Aren't con artists
    • Actually have merchandise
    • The merchandise meets your standards
    • Are able to deliver and on time

For more see where to buy resalable items.

Lending Club

© Copyright by Arthur A. Hawkins II. All rights reserved.