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 Eight to a Fortune:

image of a Windows 98 for Dummies book
A Simple Book Deal for a Simple Book

Experiment Title

Acquiring and Selling an Old Dummies Book

Vision

I made a little money selling a book.  What works once will probably work again.

I close my eyes and visualize negotiating, getting bids and making a sale.

 

Objective

From $9.01 in reserve capital, I plan to risk up to $1.61 for a target return goal of $1.77 or greater.

 

Hypothesis

If I can buy this dummies book for $2.00, I should be able to sell it for a profit.

Procedure

 

Research: I saw books like this selling on ebay for up to $12.  A $2.00 purchase should be safe.

I Listed the Dummies Book on ebay and sold it.

I used equipment on hand. I used a digital camera, and a computer. I used a pre-existing ebay account.

 

Results

I sold the book for $6.30 plus $3.44 for shipping and handling.  The cost was .55 for listing plus $2.01 for actual book shipping. We net 4.38 cash. Our new total is $13.89 before deductions. I continue to bring in a little more than scheduled. That extra will be important when I have the inevitable loss.

With a capital surplus I'll easily be able to repeat a similiar investment at the same level without having to having to go back several steps should I lose money on some deal in the future.

 

Profit or loss this deal                                             $4.38

Ending gross capital before deductions                       $13.89

 

Questions

 

What is my expected gain?  I expect to gain at least $.16 and the experience to handle more deals at this and higher levels.   

What do I want to learn? Books and manuals may be good for a few more deals until I rise to higher levels.  I am getting more comfortable with the process of buying and selling for profit.

 

Conclusion or Final Result

There is a clear interest in books. I will be on the look out for suitable books at garage sales in the future

Step 8 is to acquire something for <$1.61 and sell it for >$1.77 

  Starting capital                                     $9.51

Investment return goal                          >$1.77  with a net profit of > $.16

Initial investment                                   $2.00

Total expenses                                            ebay fee  $.55

                                                                   Actual  Shipping $2.01

                                                                 Sale price $6.30

                                                                 Shipping and handling $3.44

                                                                 Total received =     $8.94  

                                                                 Net gain = $4.38                                       

                                                                             

 

Ending gross capital before deductions          $13.89

 

I started with $9.51 in capital. I was looking to risk $1.61. When it was all over I had $13.89 before tax

after 35% tax of $1.53 we have $12.36

after contributions of $0.15 we have $12.21 capital for investment and surplus in case something goes wrong.

Next Step 9