Step Twenty Five to a Fortune:
Turning Old Records into Money
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.
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.
Starting capital $199.72
Planned investment risk $8.13
Investment receipt goal $8.94
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
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.
$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
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.
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.