Do you feel that you can be successful in the business of buying and selling goods? Do you want to make money doing it? Buying and selling is a long-standing art and is at the heart of capitalism. Here are some basic principles in starting a buying and selling business.
Step
Step 1. Decide what you want to buy and sell
You can sell all kinds of things. However, you should master one type of market.
- You can buy and sell anything, even a broken cell phone. You can buy and sell physical object (such as orange juice or newspaper) or non-physical object (such as services performed secretly).
- Remember a few principles. The rarer an item is, the more people will pay for it if they want/need it. It is called supply and demand. So, natural diamonds will be more expensive than synthetic diamonds because natural diamonds are much rarer than synthetic diamonds.
- More and more business or skill needed to make a product or service, the more expensive the product or service. Products that take a very long time to make, or that require a lot of different skills and a lot of practice, will cost a lot more than products that anyone can make right away.
Step 2. Research the market
You should know the average price of your product when it is bought or sold to someone who knows its value.
- The market you are looking for could be a retail location, a wholesale business location, the internet, or some other appraiser. If possible, pay attention to the products being traded on open market like eBay.
- The market value of your product or service will sometimes fluctuate depending on a number of circumstances. Over the past ten years, although the price of milk has not changed much, the price of gold and crude oil has changed a lot.
Step 3. Find a supplier to provide the product you want to sell/buy
Make sure the supplier is trustworthy and sells the product at a lower price than what you charge it for.
- Suppliers usually sell goods wholesale. Wholesalers are parties who buy goods and resell them to retailers (without changing the value), who in turn will sell them to consumers.
- If you can buy the product directly from the manufacturer, you mean cut the middleman and usually can generate greater profits from the product. If possible, try to buy the product directly from the manufacturer so you can buy it at a lower price.
Step 4. Sell the product
Watch the market so you know when to sell it. You have to look for a supportive and reliable market.
- The general rule is that you must buy a product at a low price and sell it at a higher price. This means that you should buy the product at the lowest possible price and sell it as high as possible in order to make as much profit as possible.
- This regulation has several concepts. In general, when you buy a product at a low price, the quality of the product will not be too high. So, for example, if you can buy an umbrella for Rp. 13,000 and sell it for Rp. 39,000, then this means you are buying it low and selling it high. However, the quality of the umbrella will not be too good. You can also buy a better quality umbrella for IDR 65,000 and sell it for IDR 130,000. That way, you may sell fewer products, but the profit from the total sales may be higher.
Tips
Don't quit your regular job to do this business, unless you believe you will be successful and have a clear buyer
Warning
- It's a good idea to do your best to research so that you know you're getting the best deal and not being ripped off.
- If you meet people in person, make sure they are trustworthy and won't steal any items or property that you own.
