Tuesday, November 25, 2014

High Risk equal High Rewards and High Returns

Buy high sell crazy higher, yep that is a great feeling when you get those mega sales for big ( over 100.00 ) sales but with those big sales comes the risk of expensive returns. We have recently began experimenting with high dollar items and wouldn't you just know the first sale gets returned.  In a way I'm glad it did because it taught me a valuable lesson in don't spend that money until your past the return date.

Now we normally sell in the 20 to 30 dollar an item range and its pretty safe. You keep around $500.00 in the ole PayPal account and your covered for nearly any amount of returns. With $100.00 to $300.00 items selling you need quite a bit more.  So I have decided to just sit on the cash until we have about $2000.00 in PayPal so we don't get caught short.

This means no spending for a while and that is going to be hard for us as we have gotten real used to having that extra income. I would like to eventually take that to $5000.00 and just keep that as a buffer, an amount we never go past.

On the bright side we have had 8 of those high dollar sales in the last 4 weeks so that's great for us as newbies to the high dollar market. It is going to be probably another 4 weeks before we reach our first buffer goal and can start using our money in PayPal again but at least for me, the peace of mind will be worth the wait.

I am really liking the higher end items as they don't seem to get bought up like the lower dollar stuff does. It's a fun but expensive game.  For us we will spend $25 to make $100.00 and $50 to make $200.00 or more. That's pretty much as far as we can go for now. We have nearly stopped buying clothes unless it's something really good like some miss me  jeans or something.

On a darker note we are having to use our own money (not from eBay sales) to buy new inventory and that sorta sucks but we are building a business and a pickers gotta do what a pickers gotta do :-)

Peace y'all,
Tony