Buying things to sell, how?

[m3jappa]

For a while i have considered buying 'stuff' to sell on, nothing revolutionary as it seems theres a good few doing it and it appears some do very well (or they have at least built up a good stock).

Things like plant (mini diggers, wacker plates etc)

You could also consider things like watches.

What i don't get though is where on earth do these people buy these things for an amount which means they can actually sell on for a meaningful profit.

It seems that anyone who is selling something understandably knows the value and as such wants to sell it and it always seems can afford to sell it for the top price, if they cant get that then they sit it out.

perhaps its simply finding people who cant be bothered to sell and are happy with 20% less to get the money in their account today?

Take mini diggers. Theres a constant stream available and watching them on sites like eBay they sell on pretty quick. I know of one place near me that does well, they offered to buy my mini digger for 9k and looking at their listings would sell for between 11.5-12k so after spending maybe 250 or so on it theres a decent mark up. no wonder they have massively increased their listings since starting.
when it comes to sell mine i will list private on eBay for maybe 11k and expect it to sell quickly.

Maybe with the plant it helps to know people who offload their ex hire equipment and knowing the right people just happens to them being in the right place at the right time.

Same with watches, who on earth agrees to sell their 10k watch for 8k?

I suppose you could apply this to anything which can be sold and holds a good value second hand.

[m3jappa]

Pflanzgarten said:

I can't understand the confusion?

Say selling something bought in bulk from China, I might really want X and I'm willing to pay £Y for it. What I can't be trashed with is buying XXX and trying to sell all of them for £YYY.

So it's laziness.

Same as a watch as your example;

RRP £7,500
Grey Market price £15,000

Could you sell that watch for £15,000? Perhaps, but you're going to have go through the rigmarole of selling to the public, risking being scammed, bartering etc.

So why not sell it to a dealer for £12,000 and get rid of the hassle?

IIRC OP you're a landscaper perhaps? Why would anyone pay you £10,000 for a new block paved drive when they can buy the materials and hire the plant for less?

Because they can't be arsed to!

It's just how commerce works.

I get all that, i suppose its more of a question of how the hell do people buy stuff thats worth £100 and sells easily but they buy for £75, and make a consistent business out of it.

In my case, people are paying for the skill, plant, machinery and the fact that to do it on their own would take weeks or months and they dont know how to do it in any case.

As someone else has said, i suppose its contacts as well.

[m3jappa]

gotoPzero said:

With plant the only way to make big money is to be able to refurbish at a low cost or export to a market that will pay more.

The cost to refurb machines is not actually that high so long as its running and driving ok. You can take a really tired machine like a mini digger that looks like its ready for the scrap yard and spend a couple of grand on it (in materials) and it will look like a really well looked after machine.

The big cost is the work shop, equipment and people who have the knowledge to carry out the work.

Most of the people doing it are ex-fitters for the likes of JCB/Case etal or big quarries etc and know the machines in and out.

Reading that back i think your right tbh. I do see and know of machines which are remarkably tidy for hours/age. I guess thats what they are doing.

I can do some stuff but couldn't do major work on them.

[m3jappa]

Unfortunately (or fortunately) i have dealt with the public in my line of work for over 20 years

tbh 99% are absolutely fine, i say what im going to do, do that and then theres no problem at all. Pretty easy really but yes now and then a total lunatic comes along

I totally get the overheads part. I am a paving contractor and have some fair overheads now. Yes, so many people seem to forget that part and in my line of work it seems most of them don't get that part at all........

Anyway, it was only a thought (the buying and selling) i will stick to earning with my hands, skill and knowledge.....

[m3jappa]

TCX said:

Most plant firms have 'preferred' dealers,often some one who has worked for them in the past,who take packages of machines,it's easier to sell on stuff than dealing with individuals.
Lot of the larger firms can buy/ lease gear,use it 6/12 months and sell it on above their cost price,buying in bulk

It certainly appears that way.

I am wanting a new digger and brand new ones are still thin on the ground. Contacted a guy who is selling a good as new (24hrs, 6mths old) bobcat and speaking to him he told me he used to work for this plant hire company and when he left he agreed to take all their old or unwanted plant....

the px he has offered on my machine is incredible tbh.

machines like mine are advertised for around 12k plus vat

i was going to sell private for 11k (obviously easy to ask, different to get).

he's offered 10.8k against an already reasonably priced machine.

I haven't even sent the deposit yet but the guys very keen to do the deal as he already has someone who wants my digger.

so for me as has been the story of my life, especially after reading the valuable comments above i will stick to earning through labour

thanks all for the great insights.