The Chattle Challenge - Operation Benjamins

Summary of my chatteling progress since 9/6/12 - if this post is too detailed let me know, I find other people's stories to be motivating so I will try and share as well.

Purchased Skip Rossell's book
-Read it through
-Got excited started looking for deals midway.
-Found a few, emailed away, why doesn't anyone put numbers?
-Waited eagerly for responses
-Figured I'd be better off using my time in a productive manner, decided I'd setup a picturing station.

Setup picturing station, see below:



I'd built this for my defunct eBay business a few years ago, it's only slightly ghetto but I used what I had. The light cube is also from then. Sorry about the lighting I just took this today, you can see my two eager business partners Charlie the brown one, and Sammy the black one. Charlie is a little hefty and would probably eat away my profits rather quickly as he is constantly hungry.

9/7/12
Withdrew a $100 to start chatteling with.
Went to work
Finally received a response back on an ad I asked about, but we couldn't schedule a meeting time due to scheduling conflicts. I asked her if I could keep her number and call her when I'm out there again, she said okay.
Decided that since I wasn't having any luck with Craigslist I'd start with stuff I've been meaning to sell but haven't taken the time.
-Listed two auctions for a Logitech Revue Google TV, and a Microsoft XBOX 360 Kinect
-Sold the Revue with a Buy It Now. I put Buy It Now's based on the idea that quick cash to get me started would be better than waiting to get a few dollars more.
I was stoked this evening and could barely sleep, normally I don't have any trouble, but when my mind get's whirring...

9/8/12
-Woke up early 7:00, imagine that on a weekend! I had an epiphany, I originally thought I'd have to make $431 a day to hit my goal by December 31st, I realized I only had to use the law of exponential growth with doubling my money to hit my goal. The reason I think this is a good idea is that the more money you have to play with the bigger deals you can afford. In my other thread it's been pointed out by Cornell that this has been tried before and it generally breaks down at the $200-$400 range if you're trying to double on each purchase. Ankesh shared that it would be better to just take a 15%-20% profit on more things to make it up. I still haven't formed my opinion, I'll deal with it when I get there.

-Once my wife got up, she asked me if we were going to yard sales like we used to. I said sure, drove around for a good 10-15 minutes looking for one yard sale, I'm pretty sure it was last weekend Ended up finding an Estate Sale up the road from me. As luck would have it, it was a nice house with good items and they were selling it all. I rummaged around and looked at a few things when I went out back, they had a beautiful stainless steel barbecue with a surround. I was pretty sure that I had seen a similar BBQ without the surround on Craigslist for $300. Did I hit gold? I went and asked the owner how much he wanted, he told me $70.00, I didn't even haggle like I normally would just pulled out the money. I rushed to the car and told my wife to wait by the BBQ in the backyard I had to get the truck.

I went and got the truck and dropped off my business partners (the dogs) who were waiting semi-impatiently in the car with my wife. When I got back we loaded up the BBQ, that sucker is heavy and I asked about some weights I'd seen. I left all in all $132.00 poorer, but I got the weights and the BBQ, and I don't know how I lost $2.00.

I found out afterwards that my wife doesn't know how to get to a backyard and had never been to an estate sale. If you've never been, it can be a little bit awkward walking into someone's house and asking what's for sale. My wife only found the BBQ about 2 minutes before I got back, but before she found it she heard the owner talking to someone on the phone asking about it, he said he'd sold it for $70.00 but if they could beat that he'd sell it to them. This is why it's good to have a helper and be ready to take it with you, but sometimes you can't.

That was my day.

9/9/12
Day off

9/10/12
Today I had a little extra time so I thought I would start cleanup. The prior owner missed the taste of a charcoal grill, and decided to use the grill with charcoal and wood chips instead of propane. It took about 3 hours to clean it but I finally got it done. I know this isn't always the best use of time, but my old ebay business taught me presentation matters, and can be the difference between a quick sale with more money or a slow sale for less money.

Here she sits:



Initial research indicates that the owner wasn't lying about the $1400 price tag, what I'll get out of it I don't know, but it sure does make a tasty burger.



and the weights:

Shelby, very much enjoying this.

Getting motivation and information! It'll keep me coming back for more, just to watch you tweak your system. Thanks for posting it!

When you sold with the buy-it-now button ... I'm assuming you are ebaying yet again?

I think I'll use a combination of eBay and Craigslist as well as other venues as I find them. It will probably depend on what sells best where.

It would be cool to watch you do it as well, hop on and post when you sell something!

Here's an update for those who are interested.

I listed the Grand Hall BBQ on Monday with Craigslist. On Tuesday I discovered that my ad was not even in the search results.

This phenomenon is called "Ghosting". Ghosting is when Craigslist tells you that everything is fine with your ad, but it doesn't appear in the search results so effectively your ad is there but not. No one will see the ad if it gets ghosted.

Apparently Craigslist will ghost your ad for a number of reasons including:
-Editing it too much
-Not having a verified account
-Listing it in the "wrong" category
-Using HTML
-Hosting pictures on sites they don't like
-and more…

I believe my ad was ghosted because I edited it a thousand times to figure out how to add the video I made and get the pictures up right. I'm a bit of a tweak and like to use the hosting I already have for things, not a good idea with Craigslist.

So I'm out the $70 for the grill and $50 for the weight set so far, but should eventually get the money back. I think the grill will take a while to sell at the price I listed it at.

Here's the ad:

http://inlandempire.craigslist.org/app/3264998782.html

On the plus side I've sold the XBOX Kinect and put $65.00 in my pocket to play with. The Logitech Revue was sold but the buyer backed out, I will have it sold shortly as well.

I've also started compiling a list of things to look for on Craigslist in addition to Skip's report that I can quickly flip. If you want to get started doing this as well and are having a hard time PM me and I'll share the list with you.

Michael Senhof emailed me with some Craigslist interviews he did and I think they are very helpful, especially if you're just getting started. Here's the link:

http://www.hardtofindseminars.com/Craigs_List.htm

Here's some things I picked up:

When meeting people be very specific on what time they will come, don't waste your whole day waiting for Craigslist flakes. Have them call you when they are on the road.

Print out the ad and use it as a receipt, if you are scared to ask for their money say, "Shall we finish the paperwork." Don't help them load until you have the money.

Everything has some value, even old carpet, one man's trash is another's treasure.

Screen people over the phone, if you are uncomfortable meet them in a public place before giving them your address, also be wary of people and use common sense. I read a story on Craigslist about a guy who was selling a laptop, he arranged to meet at a McDonalds, the buyer showed up looked it over and ran with it, his buddy was waiting in a car. The seller ran after them and punched the guy who dropped his laptop and broke it. The two guys got away, the seller is stuck with a broken laptop.

Everyone has different tactics, you can either buy and sell chattel quickly for low margins, or stick to your guns and bring in the higher margins.

On listing: Take good pictures, host them through something like Flickr, be detailed and point out benefits, if your item has a warranty add that in.

Other things I've personally learned:

Write your number out like five-five-five-etc-5-etc-5 or make it into an image, so the scrappers won't pull it and file it away on a scammers database.

Use a junkier email address, scammers abound on Craigslist and the people who are really interested will call or text.

Add a way to identify scammers in your emails, here's something I'll probably add in to my future ads:

"If you are not a scammer please type the word bear in your response"
"If this ad is up the item is still available"

You can use filters in your email to sort these.

Hope that helps some people make some money, I'll report in when I have more to share, unless this thread is a bore to people.

[GordonJ]

Originally Posted by shelbyc

So I'm out the $70 for the grill and $50 for the weight set so far, but should eventually get the money back. I think the grill will take a while to sell at the price I listed it at.

Here's the ad:

http://inlandempire.craigslist.org/app/3264998782.html



Everyone has different tactics, you can either buy and sell chattel quickly for low margins, or stick to your guns and bring in the higher margins.

I've written about this for years. Yet, the vast majority just don't get it. You don't.

So here it is once again.

Circulation of your money beats STORAGE, WHICH is what you are doing with such a high price tag on this item. Greed.

99% of people THINK they know a value. If it takes you a week to sell this at your so-called higher margins....that's 7 days of potential deals you won't make.

This is absolutely the #1 reason people fail with chatteling...they KNOW they can get more money, that is, the item is worth X and rather than circulate their money, they put it into storage.

Just my opinion.

Gordon Alexander

PS. The legal term for personal property is chattel. If you are buying and selling chattel for a profit, then you are chatteling. If you are buying and holding stuff until you get some perceived value...you are losing time and money.

And oh, I'VE never been ghosted or flagged cause I follow the rules. If you are going to use craigslist to do this, it certainly helps IF your ad can be seen. MINE always are. And I've conducted many deals at McDonalds and the local coffee shop. Never have I had a problem in 20 years.

You talked about doubling....

Double your money on this and get rid of it quickly...get your $70 back and reinvest the $70 profit and double it again...then use the $140 and double it either through one transaction or 2 transactions.....either way doesn't matter.

@GordonJ

Thanks for the knock on the head, I see what you mean, better to keep that money in circulation, I've already probably missed out on a few deals where I could make the money up. In your experience is this some kind of metaphysical law such as "An Object in motion tends to stay in motion"?

What did you mean mentioning the spelling then? Just a friendly suggestion to increase search rankings?

@Cornell

I've got some more play money now from selling the Kinect, I will do this now with that money. I will also relist this tomorrow when I have a few minutes for a lower price.

Now for both of you, you're saying that everyone of your deals is flipped within 1-2 days because you're offering such a great deal? Say I think the market will bear $350 because the average price is $400, you would list at $140 and move on?

Thanks again for the tutelage,

Shelby

You spelled chattel wrong in the title of your original post. You spelled it "chattle" instead of "chattel". Since it is wrong in the original post, it is wrong in the title of every reply to that post (including this one).

Originally Posted by shelbyc

@GordonJ

Thanks for the knock on the head, I see what you mean, better to keep that money in circulation, I've already probably missed out on a few deals where I could make the money up. In your experience is this some kind of metaphysical law such as "An Object in motion tends to stay in motion"?

What did you mean mentioning the spelling then? Just a friendly suggestion to increase search rankings?

@Cornell

I've got some more play money now from selling the Kinect, I will do this now with that money. I will also relist this tomorrow when I have a few minutes for a lower price.

Now for both of you, you're saying that everyone of your deals is flipped within 1-2 days because you're offering such a great deal? Say I think the market will bear $350 because the average price is $400, you would list at $140 and move on?

Thanks again for the tutelage,

Shelby

Originally Posted by shelbyc

@Cornell

Now for both of you, you're saying that everyone of your deals is flipped within 1-2 days because you're offering such a great deal? Say I think the market will bear $350 because the average price is $400, you would list at $140 and move on?

Hi Shelby:

No not saying that they are flipped within 1-2 days because they are such a great deal....they are flipped quickly to get the cash back in action.

If I have an item that cost me $200 and I know I can dispose of it quickly for $350 but then decide to sit on it to try and get an extra $50....then I don't have the $350 for an item that I just found for $300 that I could flip for $500...I would not only have passed up on the $150 profit from the first item but would also lose out on the $200 profit from the item I didn't buy because my money was tied up trying to make an extra $50.

Learn what dealers and stores buy what in your area or neighboring areas and when you find an item they will be interested in take it to them and get your profit and turn around and do it all over again...what is better...one sale making $200 in your pocket or 2 sales putting $300 in your pocket?

Do some homework...watch the classifieds and see what things are selling for...then buy and price yours for similar or a little less for quick flip....not to mention if you don't know what things are selling for you will end up overpaying and taking a loss.

With regards to: [ Say I think the market will bear $350 because the average price is $400, you would list at $140 and move on? ]....NO...

....every case is different. In the case of your BBQ...I know BBQ's of that calibre are selling here for around $250 - I also know that at that price it can take a few days to unload it....so I got a good deal at $70 knowing I could double it at $140 and move it out the same day I bought it...now I could go for $200 to make the extra $60 but then I might have to wait 2 days for the sale...I want it in and out the same day if possible and no more than the next day....I only put money in my pocket when items sell and the faster they sell the faster I am putting the money into my pocket or into circulation to repeat the process. If I can double then I am happy and away I go again....sometimes tripling or quadrupling...all depends on price paid and what the competing items are selling for....always priced for the quick sale so I rinse and repeat.

Hint: I don't use craigslist or kijijii...I use a smaller local classified site....it's easier to see how fast things move and what the prices are that are moving. A good item at a good price will move off the classified site here within hours of posting.

Example: I just recently picked up a riding lawnmower ...asking price $275....bought for $200...needed an $80 part....bought part...added part in 15 minutes...listed for $400 and sold it roughly 2 hours later with $120 profit. Riders of this quality normally list for $450-$500 and I could have gone for that but then I would have been fighting for a buyer with 6 others that were listed in the price range...instead I went for the $120 profit at $400 and had it gone while the others were still sitting there trying to get more money....and I am off to find another gem and do it over again.

I would much rather turn 5 items in a week and profit say $600...than have one item that will make $600 but have to wait 2 weeks to get the money....in that second week I have made another $600 that otherwise would have been lost....it's all about moving things in and out...circulating as Gordon says.

C.

[GordonJ]

Originally Posted by shelbyc

@GordonJ

Thanks for the knock on the head, I see what you mean, better to keep that money in circulation, I've already probably missed out on a few deals where I could make the money up. In your experience is this some kind of metaphysical law such as "An Object in motion tends to stay in motion"?

What did you mean mentioning the spelling then? Just a friendly suggestion to increase search rankings?

@Cornell

I've got some more play money now from selling the Kinect, I will do this now with that money. I will also relist this tomorrow when I have a few minutes for a lower price.

Now for both of you, you're saying that everyone of your deals is flipped within 1-2 days because you're offering such a great deal? Say I think the market will bear $350 because the average price is $400, you would list at $140 and move on?

Thanks again for the tutelage,

Shelby