I want more cash. Do you want more cash? Ofcourse you do. Let’s start a list here of ideas on how to bring in cash, some old ideas and some new ones. Some serious and some silly ones (I’m looking at you Chris). This post will be about Retail opportunities. We will dive into other fields in other blogs.
Here is a list of money making Retail business that I have done and the thoughts behind them. They all revolve around small products as opposed to something big like selling cars or whatnot.
I see these types of business as hobby businesses that could grow from a closet in your house full of product to a warehouse full of junk you selling. You need very little to start out in the retail/resell trade. Maybe a couple of hundred to start.
- Retail – eBay (an old tried and true one here). In the last year I made about $2,800 on eBay with little effort. True, I was selling a portion of my old collectibles (I’m good at discerning what will sell well in the future). I also got into listing individual CCG cards (Collectible Card Games). that is a bit of work but you can have thousands of items listed with little storage needed and good return if you have the patience). What I have found out are these pointers about eBay:
1.) Be Patient – It’s like planting seeds, eventually you will harvest.
2.) Smaller is better – The less space your product takes up the better.
3.) Use eBay shipping – It’s cheaper and easier. - Retail – Conventions. This one is a bit hit and miss. Booths costs are often way more that need to be and your profits go into the rent for a 2 day con and you wound up just breaking even and having spent your weekend being bored. However, conventions are a good place to turn over product, obtain cheap product (if you can work a deal with other vendors or customers). It’s kinda like a networking event (which I hate that aspect) but there it is. It does have it’s advantages.
- Retail – Conventions (running one). We have discussed this many times. It is still a dream of mine to run a toy/collectible show. Starting small is the key I believe. You can have the advantage of selling your stuff,, collecting rents, networking, sourcing from other vendors.
- Retail – Antique Mall/Craft Mall. We have done this before too (Chris mainly). I think if you find the right location it could work (or with a lower rent and plenty of advertisement).
- Retail – Shop. This is tricky UNLESS you own a retail location, can do consignment at an existing location, or can get the rent for next to nothing. RENT is the #1 reason for failure of any mom and pop business (that isn’t an official statistic but it makes the most sense).
Sourcing:
Sourcing is a big part of any retail operation. You have to find cheap product or good product that you can sit on until a later date that be sold for more (I’ve gotten pretty good at that). Our go-to sources have been:
- Retail (clearance sections)
- Retail (non-clearance but items that will likely appreciate in value)
- Retail (end of year sales)
- Pawn shops
- Goodwill/Thrift
- Garage sales (probably the best place for high profit items at low cost)
- eBay (look for bulk or shop auctions and underbid at the last second)
- FB Marketplace
- Friends wanting to sell and make buck from their old stuff
Products:
Chris and I have sold several different items: comics, collectibles, toys, models, games, household stuff, anything and everything you can find at the sourcing list above. A co-worker and I (Chris Noble) starting making 3D comic book page cutouts in frames to sell at shows. So we have store bought and hand made products. At some point in the past I made candles to sell as well.
You have to figure out what will sell well (or eventually sell well), where your customers are, and how to get them to buy it.
- Conventions were good for hand made items, rare items, or cheap items. They are also good places to turn over your inventory quickly. Your exact customers are walking past your booth, this is your chance to get rid of a lot of stuff. However, you will probably be cutting prices to do so… but it’s a good chance to convert to liquid assets on stuff that is slow moving otherwise.
- Antique/Craft mall are good for hand made and cheap items. Rare items are kinda risky since no one is watching your booth.
- Online is good for rare or collectible items. Don’t sell cheap online.
- Retail shop was good for hand made, rare, collectible items. Cheap items are not really worth it (since you are trying to pay some bills). Selling cheaply is fine as long as you bought SUPER cheap and you can easily turn it over.
Profits:
When it comes down to it, your success depends on profits. I did the convention thing for several years and could always turn over product but I hardly ever made enough profits to make it really worthwhile.
Online selling is where the profits come in. I am specifically talking about eBay. I have tried Amazon and there are so many hoops to jump through that it often more frustrating that worth it.
eBay provides a marketplace where people are searching for specific items, not just randomly browsing. Like I said earlier eBay sales can take some time. You may get antsy and want to reduce the price of something, but don’t. I’ve had stuff on there for a year or more and suddenly it sells. As long as you check ‘sold’ comps and price accordingly, you will be fine.
So what do I suggest?
After spitting up all this info for you, I am at the conclusion (once again) that a blend is the way to go.
- Source and get the cheapest deals (only when it’s super cheap) or rare/collectible items, or in bulk.
- List it on eBay (for larger items, try FB Marketplace).
- Try an Antique/Craft Mall booth (once you get enough and if there is one that meets your needs [cost/traffic] close by). This is especially for those of you who want to feel like you want to have a physical shop of your own (but just can’t afford that).
- If your products fits, try a booth at a convention or craft show.
- Only consider an actual shop if all the stars align… it’s rarely worth it.
So that’s it for my look at Retail business. Ofcourse I am coming from a very specific experience aspect so you may be thinking totally differently that me and may have better ideas. Leave them in the comments below if you do!