Library of ideas
Library of Ideas

crucible of experience
Crucible of Experience

stairway to a fortune
Stairway to a Fortune

Treasury of Tales
Treasury of Tales

Vault of Old Videos
Vault of Old Videos

Portfolio of Motivation
Portfolio of Motivation

Table of Negotiation
Table of Negotiation


Additional articles:

Get Rich After Retirement

Never Break the Copper Rule!

Barter Page

Step Twenty Five to a Fortune:

picture of Surfin' Bird 45 rpm record

Experiment Title

Turning Old Records into Money

Vision

I have an old box of 45 rpm records that live in a dark closet taking up space

I have a lot of old records, but I had no way of knowing the condition any of them were in.  As I looked into the possibility of buying a record player, I discovered a market for phonographs I did not know about.

About this time I stumbled upon a local school auction for 17 record players.  I bid $45 and won.  Now I have something to check out the quality of the old records.  This deal is about the records.

Objective

Step 25 schedules an investment of up to $8.13 hoping for a return of $8.94 or more.  A search on ebay shows that some old records sell for good prices, but others don't sell at all. My objective is to convert these records into as much capital as I can

From $199.72 in reserves , I can invest up to $8.13 in hope of expanding that to $8.94 or more.  That should yield a profit of $0.81 or more.  Since the probability of selling these records at all is low, I don't want to spend a lot to list them.  I already own them so, acquistion price is low.  I think I paid 79 cents for them back in the day.

Step 25

Starting capital                                    $199.72

Planned investment     risk                      $8.13

Investment receipt goal                           $8.94

 

Hypothesis

If I can sell some of these records as singles, then group those that don't sell into packages, I should be able to make some money

 

Procedure

 

I listed four records on ebay.  Of the four only one sold.  The listing fee was waived so there was no cost to those that did not sell. 

I sold "Surfin' Bird" by the Trashmen for $1.00 plus $4.00 for the shipping.

Results

$5.00 - $2.60 for shipping - $.55 in fees leaves $2.05 for fun and profit before taxes and contributions.

 

 

 

 

                                        gross profit before deductions was $2.05

 

 

 

Ending gross capital  (before deductions)            $201.80

 

Questions

Can you grow broke taking a profit?  The answer to that question is no, but it's hard to get rich at this rate. 

What did I learn from this deal?  As poor as the return was, and as much work as it was to list four and sell one, I did learn that some records can be sold.  I have records; I just need to take a different approach to selling them.

 

Conclusion or Final Result

 

I started with $199.72 in capital. I was looking to risk $5.56 in hopes of growing it to $6.11.  I didn't get as much for the templates as I'd hoped, but I still made a profit on the postage.  After the sale before tax and charitable deductions I had  $201.80

35% of $2.05 = $.71  leaves $1.34

10% for contribution from $1.34 reduces it by $.07 leaving $1.27 net

leaving $200.99 for investment and surplus to cover bad deals.

It took a while to break $200 in capital, but I've learned enough now to handled that kind of money with confidence of making a profit

This is really better than having a $100,000 in investment capital without the knowledge to manage it.  The big boys would take that hundred thousand like it was candy from a baby.

 

 

Next Step 26