Do you ever scout out great deals at the supermarket? Perhaps you’re a master couponer and you’re able to find 2 for 1 deals and then still take $1.00 of that already reduced price of spaghetti. Where else have you noticed that you can find a savings?
A few years ago, I used to work for one of the big office supply stores. I was stationed at the headquarters and it was my job to proof-read the catalog pricing before the prints went out to our prospective customers. One of my areas of focus was on any item that was selling in bulk – I had to make sure that the each price for a bulk purchase was less than the each price for buying a single. So why are the bulk prices always less? It’s simple really. If a store can get you to buy one or two more than you would have before, and at only a slightly reduced rate, then they are still making more profits than if you had only purchased one. It’s a win-win for both parties.
My Bulk Purchases as a Kid
I figured out this game a long time ago actually. When I was about 12 years old, I was looking through my mom’s Oriental Trading magazine and saw these smiley-face key chains for sale. I could either buy one for a dollar, or I could buy 144 of them for just $10. My mind started doing some quick calculations and I soon discovered that if I were to sell these smiley faces for just $0.25 a piece, I would earn $36, which means I would have a profit of $26. Not too bad considering I only spent $10! It took a while to sell them all, but I definitely made money on the deal.
What Can You Buy in Bulk?
So now you know that you can buy a large amount of a single item and resell them individually for a large overall profit, but what types of things could you sell? Just the other day I was browsing Craigslist and discovered a baseball card collection with over 100,000 cards. The man had estimated his collection was worth over $5,000, but in the interest of time, he decided not to sell each card individually; but rather, he would sell them all for just $700. If I had the time, I would have snatched up this deal and started posting each valuable card on eBay. After a month or so, I could have at least $2,000 in my pocket for a $1,300 profit!
There are plenty of other things you could buy in bulk as well, and they don’t always have to be the same product! If you walk into a garage sale and 10 different things catch your eye. Don’t just pay the prices that were marked on each of the products. Offer a reduced rate since you’re taking quite a few things off their hands. They don’t really want their junk anymore anyway. After all, that’s why they’re having a garage sale!
This post is from Derek at Life and My Finances.