Step Thirty Eight to a Fortune:
Round and Round, here we go again Third Record Player
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.
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.
Starting capital $298.56
Planned investment risk $28.07
receipt goal $30.88
If we gradually increase the size of our deals, our skills will grow to enable us to complete even larger deals.
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.
$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
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.
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.