Update..
Update: The auction closed at $713. We paid $110. That's a total profit of $603. It wound up going for less than expected but there is nothing to complain about when you make that kind of money!
Final Margin: 94%
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A few days ago I told you about a new product genre that I was beginning to experiment with, Restaurant equipment. I know, I know, it sounds like an odd things to get into. So far though, it is looking to be a very nice choice. We went to an auction nearly 2 weeks ago and picked up a few pieces of equipment. Some needed a few part and others needed a good cleaning, but they were all operational and ready to go.
I did my normal research method to determine what I should pay for them and didn't go over my budgeted amount. I came home with some pretty high margin items. Not only that, they are high dollar and high margin.
If you remember back a few weeks ago to this post, I talked about how normally the more money you spend per product the less margin you normally expect. For example I can by a $3 bag and make $50 on it. That is equal to a 96% profit margin. However, it is very difficult to spend $300 and get anywhere close to that same 96% profit margin. Its a sliding scale of sorts.
What I have discovered in the used restaurant equipment world is that you can have a happy medium of both. Here is an example below. I pad $110 for it. The average selling price on eBay Completed Listings is $1182. That is right at a 92% profit margin (if it goes that high).
Within the next month or so I will have a guide available to you that will show you exactly how to buy similar type of items, where to find them, what to pay for them and exactly how to go about researching them so you don't over pay. If you would like to be notified when that guide is available then sign up for the newsletter on the right side of this screen now.
Here is the auction. It is set to end in a few days.
We Paid: $110
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