Step Thirty Seven to a Fortune:
More Money in Old Record Players
I finally get back to the profits from phonographs.
Step 28 was the first of a combined investment. I won an auction for 13 record players at a cost of $3.50 each. I sold the first one during step 28; now I am ready to convert the rest of my phonograph inventory to investment cash.
Step 37 takes us back to the record players to sell the second one.
Step 37 according to the overview expects to reduce our junk (in this case inventory that has been waiting in storage) by an investment limited to $25.52 bringing $28.07 or more at the end. That would be a scheduled gain of $2.55.
From $267.78 in reserves , I was planning to risk up to $25.52 seeking $28.07 or more.
This step will account for the second of the 13 phonographs.
Starting capital $267.78
Planned investment risk $25.52
receipt goal $28.07
If the price of acquisition is low enough, the sale for profit will be easy.
I have 12 more phonographs for which I paid $3.50 each.
I listed the second record player on ebay.
So each of these items cost me $3.50
The second unit sold for $78.70 including postage
$78.70 - $3.50 cost = $75.20. There was additional expense of $22.72. I had postage, ebay final value fees, insertion fees, and pay pal fees, which leaves $52.48 gross net before deductions for tax and contributions.
Reminder: My last three steps were a bit shallow on the profit. I determined I needed larger profits. The great price I got on these phonographs should provide a way to make up lost ground on the profit margin. I should be able to add significantly to the reserves, far beyond the scheduled gains. This is important because as the deals get larger this will be harder and harder. The large reserve will provides essential funding for unexpected costs.
gross net profit before deductions was $52.48
Ending gross capital (before deductions) $320.26
What did I learn from this step? I learned that all profits are good, but large profits really build up the reserve in a hurry.
I started with $267.78 in capital. I was looking to risk $25.52 in hopes of growing it to $28.07. My risk each of the remaining deals comes to $3.50 for purchase plus required additional expenses. After the sale before tax and charitable deductions I had $320.26.
35% tax on $52.48 is $18.37 that gives us $34.11
10% for contribution from $34.11 reduces that by $3.41. Now we have
$30.70 increase to total $298.56 for investment and surplus to help with any contingency.