Erik’s Blog: Board Shorts and Business Suits

Surfing is synonymous with Hawaii. People visiting, vacationing, or moving here usually want to give it a try. Once those people moving to the islands are hooked they will want to buy a board. Most won’t wait around or learn where a deal is, they want it now and will spend upwards of $400 for a used board. When they move they’ll end up selling the board for a loss last minute because they forgot about it and need to unload it fast.

It took me a while to notice that there was an opportunity here to make money. I was like those people I mentioned. I bought my board for $350 as soon as I could. This is still a good price for a board but not as good as if I would have known where to look and waited it out. Once I realized this and got done kicking myself I woke up and took it for what it was. A learning experience that I could make money off of. Buy a good used that is popular in the area then resell it for more to those who don’t know where the deals are.

Now this type of business can apply to many different places selling many different things. Take for instance college campuses. Every fall new people move into college towns all across the nation and every summer they move out. People sell, give and trash all types of things that could be collected and stored for a few months just to be turned over to those incoming freshman for a profit. I am sure there are many more situations where people sell things last minute for a loss ,you just have to start looking around you.

The example I have implemented myself is buying and selling surfboards. Take what you will from it and apply or improve the methods that I have used. Giving it a try will allow you to become good at selling things which in business is half the battle.

1. What to Sell
2. Where to Buy
3. Negotiating - Part I
4. Advertising the Goods
5. Negotiating - Part II
6. Improving Profits

1. What to sell

Like any business you need to make a profit. For used goods you should be looking for something which people sell last minute for a loss and that those coming in usually buy used at a higher price. For me it was surfboards. Everyone moving into Waikiki is looking to buy a board. Everyone moving out is usually selling a board. Those moving in buy it cause they love it after their first try or because they want to fit in. I was lucky and found a product that people want right away and can’t really drive a few extra miles to get a better deal (being on an island and all).

Most people, like me, are too impatient to wait around for a lower priced board. The only other way they can surf is to pay a $10 rental fee. Within 10 days of surfing they could make up for the $100 difference if they just payed it now or so I assume the mentality goes.

Waikiki is also close to the University of Hawaii. There are a lot of students moving back to the mainland that will take a big loss just to cover a last night out of partying with friends. Look around your area. Colleges are great places to find deals and to find that good that you can make a profit from. Just be observant and I bet you’ll see something to you can make a dollar on.

2. Where to Buy

My surfboard selling business got started because I saw an advertisement for a few at my condo’s posting board. If you live in an apartment or condo you probably already know that these are great places to find deals. If you don’t live in one start wandering into the lobby’s of those nearby. You’re bound to find a deal sooner or later. just keep looking.

The next obvious place is the classifieds. Although the classifieds in your local newspaper are a good source, chances are they aren’t free and people need to charge a little more to cover the cost of the ad. The classifieds I am talking about are those in the backs of free newspapers like college newspapers, local freebies, and the current events papers. These always have deals because people can post for free and don’t feel they have to overcharge in case they don’t get a lot of takers.

Online. Craigslist. This is a nationwide online classifieds service that is free, easy to use, and wonderful. If you haven’t been there, GO!. You’ll find tons of stuff you never thought you needed. The sections are divided by major metro areas so search the one that’s closest to you. I actually bought most of the boards on craigslist and then just resold them on craigslist a week or two later for a profit (often for $50-$100 more than I payed!)

There are of course many online classifieds all over. Just google classifieds and your city or metro area name. You’ll find something.

3. Negotiating - Part I

There are two things you have to think about for the buying part of your negotiation.

First is that you have to go in thinking about what you can sell the product for. For me I had price breaks in my head for several sizes of boards, 6′-7′, 8′-9′, then 9′ and over. I also had prices for the different board shapes. This is where I would start then if I already saw a picture of it and new the condition the price would be pretty much set before I even started talking with the person. If I didn’t know the condition I would do some quick thinking while I was first looking at it. In order to know what you can sell your product for you have to have a pretty good idea what people will pay. Look around at the ranges for what people are buying and selling, see what has been in the classifieds for longer and what has been in shorter. When something isn’t posted very long it is either a great product or the price was way too low and more profit could have been made. The time will vary depending on what you are selling. For surfboards 3 days was usually a long time for me to see a board on craigslist.

Second you need to realize that the people you are buying from are usually in a hurry to sell. This is good for you, it gives you room to squeak out a little more profit. If you see a great deal don’t start too far below the asking price but still ask less, most people post for higher than they are willing to sell. If you go too low though you may offend the seller and they won’t deal with you. Start reasonable and work your way back towards the asking price. If the seller is really looking to get rid of it and you gave a reasonable price you’ll more than likely complete the deal without much negotiation at all.

4. Advertising the Goods

Where to advertise is simple. Post in the same places I described above in where to buy. You may need to wait a week or so between when you posted and when you bought, but more than likely no one will remember the previous post that you bought from, especially if there wasn’t a picture.

When you advertise include a picture! People want to see what your are selling. Even if the board looked junky I would post a picture on craigslist. People respected the honesty and if the price was respectable called anyway. When describing the board I also tried to add in where you could use it, who the board would be geared to, and tried to make it comical as well. People like humor and will be more open to contacting you if they know right off the bat that you aren’t grumpy.

5. Negotiating - Part II

Now you must resell the product. In my case within hours of posting a surfboard on craigslist I would get a call or an email. Usually these were just people trying to get a feel for how used the board really was, but often there were people who would setup a time to meet right away. When selling things through classifieds out of your residence you have to be open to other peoples schedules. Try and be as accommodating as possible, this will open you up to being nice and people will be more willing to pay what you asked.

When you meet them be honest about what you are selling. For me I sometimes would stretch the truth about how many times I used it but found it easier to just let them know I liked to buy boards, use them and sell them. Most of the time if you found the right product to sell no one will care that you are acting more like a middle man.

Finally be set on your price. If you have a product like the surfboard that a lot of people are willing to pay quite a bit for you don’t have to be that flexible in your price. My guess is you already have had a few people want to meet you and you can tell the person you are currently negotiating with that you have someone else interested. This is usually a great way to weed out those people that really want something from those just looking for a deal (or looking to do the same thing you are).

Remember that sometimes you just can’t sell the product and you may need to take a loss. Use it as a learning experience and don’t make the same mistake twice.

6. Improving Profits

Improving profits is usually done on the buying side of things. Keeping an eye out for a deal is the best way I found to improve profits when reselling goods. A lot of times I was able to wait someone out and not call right when I saw the posting. Yes I lost a few deals but I was also able to get some great deals as well that made me $150 profit in best case scenarios.

Getting more people interested. Posting in as many free places as you can is a great way to get people interested. The more people that see your ad, the more people that will call you, the more people you can say, “Sorry, I don’t want to take less right now because I have so and so stopping by later.” Saying this will cause some to call your bluff, but if you aren’t bluffing then the joke is on them.

Mostly have fun, what fun are profits if you don’t enjoy the selling.

I hope you have learned a little bit about starting an on-the-side resale business and maybe even something about becoming a good salesperson. Even if you are like me and only able to sell surfboards for a little while (craigslist has become a hit and usually there aren’t boards for less than $350 any more) you will get to learn sales and improve your skills as a business person.