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 Thirty Eight to a Fortune:

image of old school type phonograph

 

Experiment Title

Round and Round, here we go again Third Record Player

 

Vision

Third Phonograph to Record Profits!

I've got a closet full of record players and phonographs.  I need the space and I need the money.

Step 38 will continue the record player project to sell the third one.

Objective

Step 38 according to the overview requires an investment less than $28.07 seeking $30.88. or more at the finish of the deal.  That would profit us $2.81.

From $298.56 in reserves , I was planning to risk up to $28.07 growing it to $30.88 or more. 

This step will account for the third of the 13 phonographs.

Step 38

Starting capital                                    $298.56

Planned investment     risk                      $28.07

receipt goal                                           $30.88

 

Hypothesis

If we gradually increase the size of our deals, our skills will grow to enable us to complete even larger deals.

 

Procedure

 

I have 11 more phonographs for which I paid $3.50 each.

I listed the third phonograph on ebay.

Like the first two, this third unit cost only $3.50 to acquire.

The second unit sold for $88.32 counting the postage and handling.

 

Results

$88.32 - $3.50 cost = $85.82. To move this unit I had to spend another $23.66   I had postage, ebay final value fees, insertion fees, and pay pal fees, so as the smoke cleared $61.16 remained as a gross net before deductions for tax and contributions.

 

                                 gross net profit before deductions was $61.16.

Ending gross capital  (before deductions)            $359.72

 

Questions

What did I learn from this step? I learned that if I let the prospective buyer hear the phonograph as it plays a record they recognize, I can make a few more dollars than my competition.  This is the type of edge that a capitalist looks for to give him an advantage over others in his market.

 

Conclusion or Final Result

 

I began with $298.56 in capital. I was looking to risk $28.07in hopes of growing it to $30.88.  My cost of acquisition for each of the remaining record players comes to $3.50 to purchase and whatever extra expense it takes to sell them.  The third unit sold for $88.32.  After expenses before tax and charitable deductions I have $359.72

 

35% tax on $61.16 is $21.41 our part of that amount will be $39.75

10% for contribution from $39.75 reduces that by $3.98. At this point we are left with a

$35.77 gain which will total $334.33. For now we have a substantial back up to keep us on our feel even after a disaster. 

Next Step 39