Thinking about reselling with an "hourly number" is such an employee mentality

@commonwealthflipper

4 ай бұрын

Seems like common sense to me.

@joeambly6807

4 ай бұрын

@commonwealthflipper I think it's good to have an idea of what your time is worth, but lots of people get caught up in the hourly rate number without realizing how much more they need to make as a freelancer. Hourly rate is alot more important if you have a guaranteed 40 hours a week. I've done some flips where I made 100s of dollars in 30 minutes of work, and I would jokingly say I just made 1000$ an hour, but unfortunatly could only book 15 minutes of time 🤣

I said by the end (when I quit selling) that if you're not making minimum wage for all your hard work, it's literally not worth the effort. Some traditional (i.e. long term) resellers are disabled and can't hack a standard 9-5 without ending up in the hospital or the obituaries. I have a collection of auto-immune diseases and other problems and literally can't "go back to work" whether I want to or not. Figured out I would make medically safer money playing picker for other dealers. Far less stress too, which I have to avoid if I don't want to get sicker. Minimum wage here is about $15/hour. Most local resellers I know have a second income or are retired.

I’m afraid to figure it out. Either I’d realize I’m using slave labor or I’d realize I can’t afford myself 😂.

My advice for a new reseller. Research and study the topic for 3 months before starting. Especially how shipping works.

So yea. You got me thinking and never really have crunched the numbers till now. So I work 40+ hours a week at my daytime job. And try to put 2-3 hours a day in after work, keep in mind some days I put in 0 hours depending on what is going on, and on Saturdays and Sundays I try putting in 4-5 hours each of those days. So took the numbers for the last 90 days and times that by 2 (average) 180 hours for the 90 days. My average per hour came out to be $15.72. If I average 3 hours per day then that’s $10.48. So my hourly wage is $10.48 to $15.72. Not too bad for part time work for more than minimum wage (for my area).

Minimum wage is only $1,160 for 40 hours a week and $2-4k a month is over twice minimum wage not even close.

@red58impala

4 ай бұрын

My thoughts exactly!

Hey Kevin, love your videos. I am a property manager (I manage 120 single family homes in Washington state). This job gives me the flexibility to thrift (bins and garage sales). I plan to calculate my hourly rate soon, but I'm sure it's $40+ an hour. 4 months ago, I was making $2500 NET a month on ebay/posh/depop. Slowly my inventory is increasing and now I'm clearing $4000 NET a month and did $5500 NET last month (had an outlier sale). I should make $48k+ EASY this year part time. The crazy thing is that my labor isn't even increasing that much. This business is all about margins. Find a way to save on storage (I make a two car garage work for 600 items (currently) , find a way to save on shipping supplies (I grab amazon boxes from recycle bins), find a way to get cheap inventory. Most parts of this business are controllable

Many a reseller look at margins and its a very poor indicator for them. Good economics classes teach margins are measure for volume usually consign. There are other models too but with business such as flea market, thrifts, co-ops its almost always cash flow the measure, same with picking. For example you'd never hear "American Pickers" on TV speak of margin nor the Antique Road Show etc. This is due to the diverse nature of inventories, ebb and flow sales, inability to forecast short or long term revenues. A two dollar item that sells for ten dollars is a 400% margin yet this item over here cost $40 and sold for $70 has a 57% margin drawing a $30 gross profit. If you view the two, $42 costing and $80 gross out you see margin less than 50%, $38 profit was made w/ $42 costing. Margins instantly fail as indicator of anything, its the cash flow measure of the total business not individual items. Most resellers are buying inventories outright which is liability, money tied up in it. It has no value until sold but the investment versus gross sales out is the balancing measure. Being inventory rich and cash poor is failing as the bank should always have more money in it than inventory investment. This takes time and why its said cash flow business take time to show success, usually five years the measure in small brick and mortar. Banking considers viable small business in sales to be 1.5 - 3 million gross a year anything short of that is considered high risk of failure. One significant adverse event and they usually can't recover from it. Big retail uses margins because they consign and the value for say Target is the floor space itself. Thus the equation is sell through rate, margin of profit per unit versus floor space valuation.

Last summer I asked people at a community flea market to make their best guess at what they made on eBay per hour after costs and expenses. I only asked people who were friendly and willing to talk about it. One woman told me that she put in 100 hours the previous month and made $50. She sold those embossed old greeting postcards. This didn't make sense but her son agreed that she wasn't making anything. The guy who sold vintage toys made $7.50. He was the only one who sat down and figured it out. He says that eBay is so bad that he refuses to pay more than a dollar for any items to resell. The man with the vintage magazines and other paper items said he made $10 and was happy with that. The guy with the old tools made between $20 to $30. The woman with the plush and knicks knacks made between $3 to $5 an hour and said anything she made was a help. The lady with the used clothing said between $5 and $10. The rest of the sellers I spoke with said under $10. Most of these people were retired and/or disabled. They enjoy it but don't make much. The group that made the least were older women. Not scientific but eye opening.

@bennystratton7734

4 ай бұрын

this is 100% true many don't want to hear this but this is what most make per hour after all monthly business fess and expenses I've done this full time for 25 years online and off line i told myself because i have loved this from the beginning and i don't feel like its work to me i feel like i have been on vacation for 25 years that as long as i am making more then federal minimum wage (when i went full time in 98' federal minimum wage was $5.10 its now $7.25) as long as im doing the same or better IM 100% fine with that again it feels like im on a vacation not work so if im getting paid to be on a vacation that's even better

@joeambly6807

4 ай бұрын

That's because they are picking stuff they like, and not stuff that sells. I am a niche down seller in a highly specialized category and went from making 5k a year to 60k a year (profit not net) after sourcing things the market 2anted and taking it seriously. Selling postcards for 7.99...I don't think that would be possible even if it was a high demand itemn

@thundersnowmountain9225

4 ай бұрын

Most people I spoke with at the flea bought what they know and what they can afford. Sourcing is SO competitive. Every time I go to the thrift store, there is at least one person with their phone checking "comps" to see if the item has worth. I sell vintage collectibles and try to buy in bulk. Not having much luck. Most people trying to move large lots of stuff already have a "guy" they sell to. Or the seller finds people willing to pay silly money for stuff. @@joeambly6807

I like hearing about reselling. Not the drama some resellers bring on these videos. Thanks, Kevin, for being professional!

Kevin, the more noise the package makes the more you touch it and flip it over. 🤣

@adammonahan687

4 ай бұрын

I know!!! It used to drive me insane how much he moved a item before finally letting go haha. Now the only thing I can't stand is the extremely long pause at the end when he says " I'll see you next .................. time " like why the dramatic pause kevin?

@TheThriftyVeteran

4 ай бұрын

Ya know ya can turn it off prior? Amazing i know...​@adammonahan687

@commonwealthflipper

4 ай бұрын

Lol. Paul Harvey radio show growing up. It was his sign off. He would say his name and pause then say. Good day

@clay25420

4 ай бұрын

​@@commonwealthflipperAnd that's...... the rest.... of the story?

@-ChrisD

4 ай бұрын

​@@adammonahan687 Oh wow, I've always looked at it quite differently. (My perspective is ) Kevin takes a moment to acknowledge the departure of his viewers. It comes across as a heartfelt "until we meet again".

Oh my..lol, i saw you put those wrenches down near the glass and thought,' Oh, Kevin, why?' But then you moved the glass. It was like you heard me. 😂

Daycare , wear and tear on your car, gas All cost money just to get to work but also it cost time. A lot of people in my area live in cities like Stockton & Los Banos then they have to commute into the Bay area of California for work. We're talking 2 hours commuting to get to work and then another two maybe more to get home.

Bigger question is, and I'm sure it's been brought up before, is opportunity cost. How much you make per hour reselling is only important if you have an actual option to make more per hour doing something else with that time. If you don't then who cares. If you do then choose the option whereby you get paid more per hour.

@commonwealthflipper

4 ай бұрын

No doubt.

@cowboypatriot6052

4 ай бұрын

I agree, every situation is different and we can't hold others responsible for knowing our situation when this is subjective.

@bennystratton7734

4 ай бұрын

see but its not all about Monetary value this is why its very subjective and really and individual decision i would not stop reselling even if i was getting paid more somewhere else i have been doing reselling full time for 25 years the benefits i get from being my own boss and the time i get o be with my love ones and friends and all the other extra perks and benefits to me are worth there weight in gold maybe to you and others its not but to me and i know others our there it is i also love reselling probably more then anyone id lower my standard of living to keep reselling most would not be willing to lower there standard of living to keep being able to resell for 25 years i have felt i have been on a vacation and i get paid for it no other job in the world can compare to this

Picking hourly rate - Don't really care. It provided a living for my family while I became a Chiro and still does while I build a practice. Doctoring - I also don't care about hourly wage, but about how much I help.

@brickhauspicker

4 ай бұрын

The jobs that I have looked at as a Doc - about 50$ per hour. Hence why I'd rather continue reselling to build a practice and some other streams of income. The streams of income is important and something that most people overlook. There's an idea for the podcast.

@brickhauspicker

4 ай бұрын

Also, my fee for discussing this on ethe podcast is $600 an hour.

@bennystratton7734

4 ай бұрын

100% this and if you truly love THIS PROFESSION of reselling you should not be worrying about hourly rate! the EXTRA benefits of being your own boss and being about to be with love ones is wroth there weight in gold i have been reselling full time for 25 years and for 25 years i have felt like i have been on a vacation as the saing goes if you find a JOB you really love TRULY LOVE then you will feel like you have not worked a day in your life this is how i truly feel about this profession of reselling so i am one who could care less about HOURLY rate its not all about MONETARY value resellers need to start to understand that or go back to a 9-5 brick and mortar job. I love this profession so much to keep doing it if it meant i would have to lower my standard of living so be it i would do that most would not make that sacrifice because there not humble and they don't appreciate what reselling gives them Beyond monetary value

Kevin, as a Canadian reseller, by the time I cover supplies, shipping labels, seller fees, sourcing time etc. I'm lucky to keep 40% of my gross sales and then there's costs of goods. I enjoy reselling and I'm retired so my time is irrelevant as I have allot of spare time. As long as I make a little bit of money that's good.

@donaldpearson5172

4 ай бұрын

You sound just like me, if it wasn't fun buying I wouldn't do it.

@bennystratton7734

4 ай бұрын

yep same way i think as well i have ben doing this full time for 25 years but to me who really loves this profession it does not feel like work to me it feels like i have been been on a vacation for 25 years

Reselling is Hard. New sellers need to know that it takes a Long time to have enough Good inventory to get daily sales.

@bennystratton7734

4 ай бұрын

100%

I also think about the benefits of working from home. You don't have to drive to and from a job at traffic hour, so less gas and wear and tear on your car. Yes, we have to drive, but for most of us, it's not nearly as much. You don't have to buy "Work Clothes", or get clothes dry cleaned, etc. You spend less on lunches out, coffee out, etc. You get lots of tax benefits that people working for an employer don't get. I can claim the space in my house I use for reselling, part of my utilities, part of my cell phone, mileage, etc. And if you're a teacher like us, you are no longer buying supplies for the classroom, team, etc.

@commonwealthflipper

4 ай бұрын

Totally agree with all of this.

The most freeing thing to me after quitting my career to pursue full time reselling was NOT having to think in terms of an hourly wage!!! Instead, I set minimums (list x amount per day, etc). Trying to factor in time to equate to an amount of money is impossible considering some days I grind all day (5+ hours) and others I do very little (literally just hit submit on saved drafts and I'm done "working" for the day after ten seconds). I just keep track of overall weekly sales numbers, easy peasy!

@bennystratton7734

4 ай бұрын

YES THIS IS IT EXACELY i don't look at HOURLY because i love what i have done for 25 years as the saying goes if you love your job like truly love it then you will not feel like you worked a day in your live i TRULLY LOVE reselling i TRULLY Love this profession for 25 years i feel like i have been on vacation and GET PAID FOR IT i have a minimum for what i need or want to make per month TRUE NET for my OWN personal use and if don't make it its not the end of the world i am an introvert i don't need to be around people i can list for 10 hours and watch my wife walk through the door after work and take a break to spend time with her then go back to work for another few hours when she goes to sleep because i love THIS profession you have to have that kind of passion for it to truly love it and not feel like you working when you get to that point then worrying about how much you make PER HOUR is out the window

LOL! No one has 100% market share when it comes to reselling. Plenty of room for entrepreneur spirited people at the table.

Another thing to consider is the value of the items you're sourcing. I try to get a many high value items as I can. For the lowest price possible. You still need to sell some lower value items. They're your bread and butter. I make a very good profit on most of my items, but I'm just starting to spend more time since I just got laid off from my high paying job. We'll see how it goes as I start putting more hours in.

Hen I first started I was making minimum wage but only because I had to relearn ebay and shipping programs so first week was snail paced but after I knew how it all worked again I've made great money! Enjoy your show and thanks for keeping us informed on the hot topics

Great topics. Thanks for sharing Kevin.

I have been telling resellers in my area you have to buy real cheap to make a profit at all. that is why the estate sale, thrift store route has become very hard. Just a few years ago, I used to find a few items every week in those places that I paid $3-4 which I could flip for 100 or more. That seems like a fairy tale now. Those places are looking stuff up now and pricing 40-50 percent of ebay now.

@bennystratton7734

4 ай бұрын

yep 100% i have 4 goodwill outlets that i have been going to for 14 years within the last 5 years i have noticed less and less GOOD stuff (hard goods wise) coming out it goes right to the shop good will auction site or goodwill finds site and i have also been sourcing from shop good will for almost 20 years (there auctions are also going insane compared to years ago but i feel they now have employees bidding up there auctions pathetic schill bidding is illegal) but yes you have to keep your Margins you pay for your inventory at as closet to 0 as possible i have a personal rule that implemented 25 years ago when i went full time that i never pay more then 10% of what im going to list an item for so if plan to list it for $10 i pay $1 or less if i plan to list it for $100 i pay $10 or less and so on and so on this allows you a lot of things it allows you to have wiggle room to drop your price (best offer or running discounts and still profit)

Kevin, this was such a great video! I welcomed the lighter conversation!😊 Things have been really heavy for you and I hope this is a turn to the better! I so appreciate your passion for the reselling world. You are a WEALTH of knowledge! Can we add THAT to your VALUE/hourly wage? Thanks for all your great content. Keep up the channel and reselling. Such great videos. You and your family are an ASSET to those of us who have ditched regular TV. Well done!

My daughter never wants to move up from being a teacher, cause it would take time away from her 3 boys 😊😊

I really appreciate your videos that address the stereotypes of resellers. I get so tired of hearing all the negativity, and I really don't understand how people are able to get so angry over what somebody else does for a living. This person wasn't, I am speaking general terms. Please keep them coming.

What I’ve gathered watching other resellers is that most who do it full time, gross around $100K….but actually net less than half of that when it’s all said and done. If one files taxes as a pass through entity on their personal income tax return, they can take a lot of business deductions…(office space, utilities, mileage/work vehicle, etc…and they can offset some taxes from W-2 income that one’s spouse may receive. Me, personally, I started reselling part time (retired military) in 2018 and don’t rely on any income from reselling; don’t even pay myself. The highest gross sales years were $30K (2021 & 2022) from eBay and Amazon sales, worst sales year was 2023 (about $6k gross) -but I was traveling a lot and when I wasn’t traveling, I was doing projects in my house and on my property. The other years I averaged about $15K/year.

@commonwealthflipper

4 ай бұрын

I would say that most that I know net in excess of 50 percent of their gross. You are very correct on the deductions. In effect making the tax liabilty much much lower.

@joeambly6807

4 ай бұрын

Then you need to stop watching channels with people buying low priced stuff. I make more a year as an amateur buying instruments than many of the yard sale pickers. It's very limiting when you consider 100$ a "MASSIVE SALE" Lol

@mr-vet

4 ай бұрын

@@joeambly6807 I just resell for the thrill of the hunt….and it’s a great way to lower our tax liability; especially, with the ridiculous SALT cap that raised me and my wife’s taxes each year it’s been in place…it expires next year, fortunately

For that guy to sell 72k a year, his 4 to 5 hours a day he says he works is unreal to me. During rummage season, I can spend 4 hrs a day 2 to 3 days a week rummaging not counting hours going to Thrift stores. I sold 1/3 of that last yr and I put in more time than that. Hours in the car driving to UPS and USPS nearly every day. I'm on my phone responding to offers at 11pm too. 4 to 5 hours a day is unrealistic to me BUT I'm a 1 person business here. I have no helpers, packagers or anyone else to rely on. Wonder if when people say 4 to 5 hours a day if they count all the hours their help works? And I've been doing this 24 yrs so I'm not new at this. As usual..love the videos.

@commonwealthflipper

4 ай бұрын

I spend less than 4 hours a day.

@bennystratton7734

4 ай бұрын

same here 25 years full time on multiple platforms my own website and face to face sales via flea markets and shows and 1 man show here too (except when my wife decides she wants to help her and there) yes that 4 to 5 hours seems WAY Unrealistic unless he is doing this as a side hustle and not full time

@bennystratton7734

4 ай бұрын

@@commonwealthflipperif you count al your revenue streams then your working more then 4 hours a day also you have help if it was just you doing JUST eBay you would be working more then 4 hours a day

For every $1 in sales I make ~ 65 cents gross profit. Thanks to all the fees eBay gets about 20 cents on a dollar of sales. My kids are gone, my home and cars are paid for and I have closed my retail store to foot tragic. You could say I put in 40 hours a week here but I don't consider it work in the conventional sense (very low stress, flexible and easy going). I am 63.5 yrs old and am basically just padding out the time so I can receive maximum social security at 70. Based on a 40 hour work week I made $8.39 an hour last year.

@bennystratton7734

4 ай бұрын

Great Plan because the Self employment tax we pay via 1099k is FICA so your paying into your Social security retirement! that its my plan too but i have 20 years to go

Hey Kevin. Love watching you!

No clue as to my hourly rate. Just starting to get serious about reselling (had been doing some occasionally) and building up a stream of additional income. Thanks for the great videos here and on the Picker channel. Thinking Reseller Genie is going to be very important in tracking everything from expenses to the hourly rate. Have a great day Kevin.

I started this just a little over a year ago and love watching your videos. I don't try to figure out how much I make an hour, I started this as something to do when I retired and make a little money. All I know is that I make money on the stuff I buy but, I don't have a family to raise (mine is raised) like a lot of you do. I do it for fun (that's what I'm telling myself) but really to just to keep me busy after working for 42 years then one day that stops, you can lose your mind.

@commonwealthflipper

4 ай бұрын

awesome.

I love planners! I can see why that sold. If you ever found a Scooby Doo one, I would totally buy it lol. I use one on my phone, but there is something very satisfying about a nice planner. I use mine every day for my full time job. I started using calendars in college. I would color code exams with highlighters. My husband doesn’t understand since he just uses his iPhone calendar.

I do not do a good job keeping track of my hourly rate. I get up early do some work, then I do personal errands, then back to work, then I’ll do personal stuff and then I’ll do work. It’s not very efficient, but I just have a goal to accomplish for my day and I just work until I finish.

Thank you for pointing out that there's reselling for us that work like myself full time. As well as part time. I've been a reseller for over 20 years. I used it to supplement my income when my kids were babies... They're adults now but I still resell. Hopefully some day full time gemeni-dreams ❤️

Yeah I like the transparency of gross/net. There are many people that do it right tho. I don't track well enough to know my actual. I'd like $1 out $10 in but those are the good sales and not the average sales.

I’m a new reseller, just a going on a year. Of course my hourly wage is lower than longer, more established resellers. In a year I increased that hourly wage because you figure out what sells, what is labor intensive (which costs you in hourly wages), and figuring out pricing. All in all for a first year reseller I’m happy with what I’ve earned & learned.

The minimum wage in Washington State is $16.28 an hour, depending on where you live in Washington State could be higher. For example, the Seattle Airport minimum wage is $22.00 an hour. We also have some cities/towns now doing 4 day work weeks, but employees get paid for 5 days, not just the 4 days they actually work. Love seeing your fur baby Wallin come inside. His little trot when he comes in is so cute, those ears going back and fourth, get me every time💓. Plz give your fur baby a treat for me❤, loving you Kevin from Seattle Washington, Cheers 💓 xoxoxox

Easy method for storing/finding inventory...bins are labeled to match custom SKU I assign when listing AR for art, HG home goods, DW dishwares, PL plates, PS plush, EL electronics etc. Things I list tons of get their own code. Never have to guess where it's at n helps when checking ebay for errors like dropped listings because reports are alphabetical.

@karentingler4937

4 ай бұрын

Great idea

The minimum wage in Missouri is $12.30 hour

My advice to him is to source better items. I thrifted for three hours today and found 6 clothing items worth $400 for $60. Another hour of work to list and fulfill and I will have made $75/hour after shipping and fees.

Man 3k a month profit even at 40hrs a week is still $18+ an hr.

20% or better +shipping are where I buy at. If I can 5x on a item I'm down to list it. I do everything from board game parts to industrial equipment 😂. Bid on 5 lots for VHS tapes go to auction to pick up find out they only pictured 1 box out of... Left with 2 van loads of VHS tapes... 32 boxes 😅

I resell just to make a little extra money to pay a few small bills each month. I live with and take care of a disabled family member so I only have car insurance & cell phone to pay for each month. Any extra money I make goes into savings. I’m not out any money for inventory because I’m selling items inherited from other family members. Stuff I’ve moved from house to house and decided to let go of by downsizing. I’ve learned that I love reselling and know I can make money at it. Would love to do it full time one day.

There’s an Aussie KZread reseller that grossly exaggerates and misleads viewers. Would barely scrape a wage, and misleads with bad info. I guess you need to follow successful resellers if you’re trying to learn.

I’m retired what ever I make is fine. Just goes to golf and beer😂

@commonwealthflipper

4 ай бұрын

Lol. Love it

I pay up for good clothes and my margin is about 67% after COGS and eBay fees. I try to pick stuff that doesn't need to be promoted with a high sell-through rate. I also dabble in other categories, i.e. toys, magazines, comics, books, and housewares. Some toys and toy lots can have a 90+ margin.

@commonwealthflipper

4 ай бұрын

Hard to have a 90 percent margin when fees along are 15 percent

@Kevin-rs6cr

4 ай бұрын

I apologize for not being specific. In my last sentence, I was referring to gross margin, which, for everyone who doesn't have a CPA level education in accounting, equals Retail Price (after discounts) - COGS (Cost of Goods Sold). eBay fees are part of SGA (Sales General and Administrative Fees). @@commonwealthflipper

I have just really started my eBay back up and it is a 2nd income stream, so anything added is a bonus. I hear how much some KZreadrs make and that is great, I'm not there yet, but I know what is possible. I don't want to go back to a J.O.B...

Nice shirt Reagan!

If you want to see a transparent sale breakdown, I do what solds and break down all the fees of every sale, including paying taxes and investing back into the business 😁

@commonwealthflipper

4 ай бұрын

Yeah but you're a thrifter. LOL JK

@MattsProfitPursuit

4 ай бұрын

@@commonwealthflipper 👍🏻

05:53 Retired with no what? That didn't sound right the first time I heard it. Haha!

My hourly rate varies greatly. For certain ephemera it can be high (In the hundreds of dollars an hour) but for most general paper items and vintage books it is around $30-50 because I don't buy if I can't hit that amount. You could really have a low hourly rate if you sell the wrong items in these categories and/or you don't have the knowledge base and have to look up every single item. But these are longtail collector's items and they don't turnover fast unless they are super special so you might have to wait awhile to get that return. It's nice when it finally comes though.

I’m retired military, and my wife and I have been reselling for over a year now. We are making OK profits, and are getting better as we go and continue to improve our sourcing and processes. I could probably make more money working for someone else, but I would lose the freedom and flexibility of working from home and being able to travel. But having other income and benefits in place definitely make it easier to do reselling.

@commonwealthflipper

4 ай бұрын

amen to the freedom

@voodoopat5518

4 ай бұрын

Another thing to consider when calculating the “hourly “ wage. If the numbers are close, would you rather be working outside the home, or sitting on your couch editing pictures and listing items? I know that there are other tasks involved, but listing and researching are a time consuming task. Just food for thought.

Yep - My numbers for 2023 on ebay - Gross= $75,327.93 Minus state tax, ebay fees, shipping = $44,458.24 Minus Cost of Goods = $35,566 Minus Federal Income Tax $30,942....... Hours worked 960 (20 a week for 48 weeks) $30,942 divided by 960 = $32.23 an hour. The only way my profits would be at minimum wage would be if my Cost of Goods were tremendously higher. Or if I just bought items that do not sell.

@bennystratton7734

4 ай бұрын

what about storage, Gas, Supplies, Internet or Cell phone bill, electric bill, and many other expenses all these are business expense and must be taken off your gross sales each month to get your true NET (and if you don't need a storage unit then count your blessing many are not in that position) Technsports went over all this in one of his lives he breaks down all the numbers if you really want know your true NET

@bennystratton7734

4 ай бұрын

so your true net is what you pocket after You pay all your monthly business expenses so if your making $6k and giving 40 to 50% to eBay for fees and shipping and your left with 3 to 4k for paying business expenses which again can be very different for many sellers especially if you do not own your own land (feel blessed if you do) if you dont own your own land your expenses go way up and can be easily paying $1 to 2k for business expenses so if your business expenses per month are $2k and your TRUE net could be $1k or $2k per month meaning that is what is going into your bank for YOUR PERSONAL use

@commonwealthflipper

4 ай бұрын

Just for the record nobody who is talking about minimum wage deducts taxes and job expenses from that number either. So I am not sure why anybody would do that. In addation the things stated below in benny's comment are also tax deductible expenses and don't need to be taken off of the bottom line as they are already taken off of the bottom line. Mileage deduction more than covers the expense of travel.

@silverhairstacker8664

4 ай бұрын

@@bennystratton7734 I did not specifically say so, but I included gasoline and other business expenses in with Cost of Goods. I do not rent storage - I run everything from a 400 square foot room in my house. I did not include electricity or insurance or internet as I would have those for daily life anyway. So I did actually make $30,942 in 2023 with an average of $32.23 per hour take home spendable income.

@silverhairstacker8664

4 ай бұрын

@@bennystratton7734 I did not specifically mention it, but I included the cost of gasoline and supplies in with my Cost of Goods. I do not rent or pay anything for storage as I run my entire ebay business from my home in a 400 square foot room (Used to be a 2.5 car garage converted to a den) I do own my house and cars debt free for 14 years. So my actual real Net for 2023 was $30,942 for an average of $32.23 per hour.

The money I would save in prescription costs alone for stress etc. from not working my normal retail job is probably worth it. Putting up with rude entitled people every day that believe you own the establishment you work at & all the prices & refund policy & things that don’t work right ( like antique cash registers LOL) are your fault is not fun or worth your mental health!!!!😂🤣

For new resellers, look at HOW Commonwealth Picker does his business. You can get some value in what he sells but how he does it is the gold. Especially the bundle a big lot of things in purchasing. If one item in that bundle sells for what you paid for the entire thing, anything else will be pure profit. That's a winning strategy, that covers your mistakes and small value items. I will tell y'all this, you're going to have to learn this yourself by doing it. Your area is different from his area. There are billions of items out there and . millions of categories, he doesn't know everything, you will find value where he has no idea, so don't limit yourself on what he picks. It's obviously useful information but don't limit yourself. Also if a KZreadr is constantly pushing "Goodwill" and saying you can make a fortune at selling neckties and coffee mugs is paid to say that by Goodwill. It's the ideas Commonwealth has, look HOW he makes money. It isn't JUST eBay. He has several KZread channels, he makes his own merch, he also puts items in consignment stores. Pay attention.

The kids are the stars of the show! I love that they are all in on the family business!!

I need your advice

Minimum effort, equals minimum wage. 4-5 hrs a day 6 days a week is not a full-time effort. 💯

@commonwealthflipper

4 ай бұрын

No shame in putting in 4-5 hours a day for some folks. He said he was retired. Thats all the time I put into reselling

how long does it usually take to hear back from ebay for business on facebook? anyone know?

@GiselaBise

4 ай бұрын

Used to be within hrs, but from what other sellers have been reporting in FB groups now its 1-2 days

@StephanieStults

4 ай бұрын

@@GiselaBise it sucks 😕

How about an episode on packing and shipping for new resellers like me?

@commonwealthflipper

4 ай бұрын

There is actually a shipping playlist on the home page. Maybe I will do another one some day.

Great show once again. I choose to look at the advantages. Yes, there are down times & returns sometimes. But, you work with your schedule family, life, etc. You put as much into it as you can and many times get just that much out. Plus just like you Kevin, its a family thing. We enjoy looking, listing and shipping. It is something that you can still do with items you like & remember. We are constantly learning and hopefully improving. Last year was better so far than this year, but we're just starting. Lord willing it will improver for us all.

Harley boot straps maybe?

Depends on how much I actually work that hour to be honest 😂. If my time was lined up and tracked in actual work hours I’d hate to see how much I actually work a day. If it’s 3 hours I’d be surprised but make around $75k a year after everything taken out but I’m 7 years in so I know what to pick up.

Kevin, If I had to guess .. maybe he's paying way too much for the stuff he sells .. like you said in the video. If he's making that little with the total sales then he needs to try selling more stuff locally as well and not have to deal with all the fees ... also he must have promoted listings too high. I find on average I make about 30% to 50% profit on stuff I sell on Ebay. I do a bit better on Poshmark because there isn't all the extra fees like there is on Ebay. On Facebook marketplace there isn't any fees ... so he should be doing that for some of his sales. I only have time to put about 20 hours a week into Ebay so hourly rate is hard to say because sales some times are amazing .. other times very low. Most of my sale last week were on Poshmark .. I think I did about $200 in sales on there, About $60 on Ebay for the week after fees, and $40 with one sale on Facebook Marketplace. Me working full time I just can't put the time into the business I wish I could ... then y sales would be a lot better if i could put more hours into listing and sourcing.

Hey Kevin 😊

I really like the green blown apple u have for sale really want to get it for my special needs sons teacher but don't get paid till the first crossing my fingers it will still be there ...😂😅😂😅😂😅❤❤❤❤

My son is 20 and he works at the Movie Tavern. He makes $16 a hour. We live near Philadelphia. No one around here makes minimum wage. If you offered $7 a hour you will not get anyone to work for you.

@commonwealthflipper

4 ай бұрын

I agree. I don't even think there should be shuch a thing as minimum wage anywhere and it sure as heck shouldn't be done in the federal government.

@bennystratton7734

4 ай бұрын

​@@commonwealthflipper its been 7.25 since 2009 but yet there are so many people upset (MANINLY REPUBLICANS) against a FEDERAL LIVABLE MINIMUM WADGE of $15 makes NOT SENSE for the GOP to be against that and that is why we are stuck in a $7.25 FEDERAL minimum wage for 15 years. thank god we have had the democrats and independents (Free thinkers) to VOTE for livable wages at the STATE level i mean if the GOP wants to block it at the FEDERL level then the workers in each state have to take in there own hands and mobilize to raise the minimum wage state by state to a Livable wage of $15 per hour

Do most golf courses sell the lost and founds in end or beginning of the year ? Or is that something you worked out with them ?

@commonwealthflipper

4 ай бұрын

I doubt most sell them at all.

@alextincher1602

4 ай бұрын

@@commonwealthflipper Well it’s awesome that you can do that where your at I hope you find some gems in them ! Love the channel!!

2nd time I'm asking. How do you like, or handle the .35 cent listing fee. And it's understood you receive 200 free at the end of the month. Judging from the looks of your Cabin you must have more than 5000 items. This would bankrupt anyone who can't jump these hurdles or dive through their flaming hoops.

@commonwealthflipper

4 ай бұрын

I have an ebay store and do not pay the listing fee. I have over 1300 listings.

30% seems to be the average and that’s for folks without followings or a social media platform presence. Also, if you’re over 50% profit margins then those are some quality items being sold. The average seller is selling from a death pile or two.

@commonwealthflipper

4 ай бұрын

30 seems rather low imho. I don’t know any sellers who sell at those margins who source like I do and I’m not talking about social media folks. I’ve always sold at those margins long before social media.

@silverhairstacker8664

4 ай бұрын

@@commonwealthflipper LOL My adsense KZread 1099 statement is $134.00.

@bennystratton7734

4 ай бұрын

100% correct!

I remember the comment. I don’t know how you can disagree with the numbers when there were very valid points on that post. I’m sure the $4k profit is the holiday as that’s what I say when I include the high end. If you take out taxation (average 30%) and cost of living per area, how are their numbers incorrect? I’d put them at $20 an hour which is $5 more than min wage in many areas, and even that is outdated given cost of living. Pretty close wouldn’t you say? NJ is outrageous in prices and even garage sales are getting just stupid in asking prices. For example I still see you getting stuff for .25¢ which is awesome. I rarely even see $1 for items of worth anymore. I’ve never, ever had .25¢ happen to me in NJ. You also really can’t put a time on others to get a job done. We all work at our own pace for various reasons. Most of us work alone with no family to help either. It takes me longer because I have ADHD. I even gave a legit breakdown on that thread. I don’t think most KZreadrs are causing people to leave reselling, but I will say I’ve found some popular ones to fall short of being a hack. You’re not included but you do associate with one which is why I’m no longer a Patreon supporter. But I do LOVE your content! I just disagree on this one.

@shalyndria

4 ай бұрын

I hear you. Makes sense for you in NJ, but when 16 states have a minimum wage of $7.25, your example doesn't apply. Not every state has a high minimum wage. Regardless, I see how people in areas where prices are out of control have trouble but it's still a fun way to make a buck compared to other jobs for many people :)

@wsapsychologyfacts-og8ht

4 ай бұрын

AZ minimum wage went to over $14 an hour.

@commonwealthflipper

4 ай бұрын

I agree that in nj it’s is closer but still more. I broke down his numbers on the paper. It is indeed 30 an hour.

@shalyndria

4 ай бұрын

Az did.. not every state does that @@wsapsychologyfacts-og8ht

@thegardenstatepicker

4 ай бұрын

@@commonwealthflipper I bet it’s closer to an average of $2500z After taxes, I bet items closer to $18.22 an hour. Could you live on that? I couldn’t lol. Playing Devil’s Advocate, I also would be working more than 4 hours a day if I was making that much. It’s been rough since last Oct especially. Been making bills but close…

I don't know what my hourly rate is. Probably should figure that out. But I also think the OP is forgetting the huge tax benefits to having an in-home business. You can deduct a portion of your utilities, the square footage you use, phone use, mileage... That all really adds up

@commonwealthflipper

4 ай бұрын

No doubt. There are so so many legitimate tax deductions for this type of business. So the comments that don't regard this don't understand the benefits you are talking about. For example to anybody reading. Most folks can't take mileage from driving to work. Resellers can do that. It more than pays for the gas.

My son when he was little loved Barney. One day he told me Barney made him sick and that he needed to go. Lol. So lets just say we never talked about Barney again

Forget about trying to figure out what you make per hour reselling. Just know what your weekly net income is. If it's what you need to live on, great. If not, then do what you have to do to make more money. Get a regular job, list more, find higher profit items, etc. etc. There is no one answer that fits everyone.

@commonwealthflipper

4 ай бұрын

If you know what you weekly net income is then you basically do know what your hourly wage is unless you have no idea how much you work.

@craigwinans1948

4 ай бұрын

@@commonwealthflipper I you want basically then just compare to working 40 hours a week which would be a normal job. Are you going to quit because you made enough to live on at a job you like but it wasn't at a high per hour? Personally, I don't care if I make less per hour if the amount I make meets my needs and I get to make my own hours etc.

@bennystratton7734

4 ай бұрын

YEP 100% LOVE what you do as a reseller and it will never feel like you have worked a day in your life 25 years doing this full time both online and off line and i feel like i have been on a 25 years vacation its not all about the monastery value ill lower my standard of living if i had to to make the business work most resellers don't truly love reselling that much to make that sacrifice

@bennystratton7734

4 ай бұрын

@@craigwinans1948 1000% correct this is what i have been trying to tell Kevin! its not all about the MONETARY value how hard is that to understand...NOT everyone resellers 100% for the money

Minimum wage in Tn is 7.25

@GiselaBise

4 ай бұрын

Same in PA

He said he nets 4k a month that’s around 35 an hour he’s making double the California minimum wage 12:20

So cool how banged his numbers.😊

*turns down volume before wife complains about the yelling*

To net $3k a month you are looking at reinvesting all your cash flow for the first 1 1/2 years (or more) = zero money. You are not calculating things that don't sell and the cost of restocking. I would say 20 to 25% of most resellers inventory doesn't sell within 2 - 3 years. Plus cost of accounting (risk of audit) and travel. The 5 or 6 hours worked prevents a person in getting a full time job. Salary people get paid lunch hour. Also self employed pays full 15% social security vs. 7.5% for salary workers. There is business (capital risk) selling on ebay a employee has no risk of losing money. If a startup ebay seller gets 2 or 3 negative feedback they are pretty much doomed. Accumulated inflation in last 5 years is 22% higher. Some resellers have the expensive cost of a custom double shed.

@whysoblutube

4 ай бұрын

And some established sellers work under an LLC and even an S-Corp, so I’m sure that helps with the overall tax burden.

@commonwealthflipper

4 ай бұрын

If 25 percent of inventory doesn’t sell then people are buying the wrong inventory. That is way high in my opinion. Travel pays for itself in the mileage tax deduction. It does not for people who are employed. There are also so many costs involved with working a job that aren’t mentioned here.

@WondrousThingswithBrianFrench

4 ай бұрын

@@commonwealthflipper You don't know what you are talking about...many of us don't sell yard sale junk and toys like you to viewers. High end shoes and apparel can take 3 years or more to sell. What's your "margin" on your double custom shed? The average person should be able to make over $60,000 a year in salary. Only a small percentage of reseller make more than that. Expenses of a salary job? How about health insurance, 401k matching?

@bennystratton7734

4 ай бұрын

@@whysoblutube it does not they still owe the same burden 15.3 self employment tax so on $50k Gross its only $7650 where you monthly reselling business expenses could be WAY more for the year say your monthly business expenses are $2k x that by 12 months that is $25k a year for business expense way more then the $7650 take burden you would owe so Your monthly business expenses HAVE MUCH more of an impact on your NET that you pocket for your personal use then YOU think and more then Kevin is alluding too so this is how you should look at it after you deduct all your business expenses for the month that is the true NET so $50k minus $25k for the year you NET $25k that is why you pocket or EARN for the year (and what you report on your Income tax) but instead of paying $7650 on $50k at 15.3% self employment tax your only paying $3825 and how you should look at that your $25k in business expenses for the year saved you $3825 that now you can reinvest in your business but again your monthly business expenses Are WAY MORE $$ wise then your 15.3% tax burden at the end of the year i mean heck eBay takes more in there 20-25% or more in fees then the IRS takes from you for 15.3% self employment tax

👍

Thank you all for sharing you have a blessed day in the name of Jesus Christ.

I don’t think a comment should bait you into all the issues. If you are retired and your wife works etc and you are happy reselling I say do it. One day you may want to reconsider and go back to your love of teaching. I imagine with your due diligence you do well above average the drive in a person is the difference between winning and losing. Life is about living a purpose filled life you children are a great reflection of you.

@commonwealthflipper

4 ай бұрын

I didn’t bait me in. I like discussing them. Thank you for the kind words

@jeffcole1914

4 ай бұрын

@@commonwealthflipper bait may have been the wrong terminology lol the English language is not for messaging people for sure.Hope you have a great day. I sell on eBay myself just for fun mostly selling off my years of stuff, I have to say I get a charge out of the cha Ching!

12:57 actually kevin your wrong NET Sales is GROSS minus ALL your business expense ALL of them (no cherry picking) that is your TRUE NET and im pretty sure that is what the viewer was talking about! so expenses like Inventory, Platform fees (ebay anchor store is $350 a month, Shipping, Supplies, Gas for your car, Storage Unit Fees (if your not blessed to own your own land and ebay sheds (like yourself) my storage fees for 7 storage units come to $2500 a month i know there are MANY Many expenses im forgetting but these all have to be paid EACH month from your GROSS sales so yes i agree with the viewer MANY many social media influencers MISLEAD viewers especially new sellers or viewers that wan to start selling regarding GROSS sales and TRUE NET sales

@bennystratton7734

4 ай бұрын

BTW Technsports even stated on his live that Most sellers run 40-50% Profit Margin on eBay (so this means you give 40 to 50% of your GROSS to eBay for FEES and shipping) and if your left with 50 to 60% to pay all your other expense depending on your EXPENSESES its very possible to only be making $1 to 2k per month AFTER ALL EXPENSES are accounted for sellers need to really do a deep dive into there EXPENSES what they actually PAY for there BUSINESS each month (how much it cost to run there business MONTHLY i bet you MANY will be in the same boat as the viewer IF NOT WORSE)

@commonwealthflipper

4 ай бұрын

I'm sorry but you are incorrect. Net sales is the sum of a company's gross sales minus its returns, allowances, and discounts

@bennystratton7734

4 ай бұрын

@@commonwealthflipper im sorry Kevin but im not wrong here maybe you don't want your viewers to know the truth but that is what TRUE NET sales are its what you pocket (or goes into your personal bank account for your personal use) after paying your Business expenses for the month

@bennystratton7734

4 ай бұрын

@@commonwealthflipper also you have not told anyone what you pay % wise for taxes things might be different for you if your an LLC or C Corp you might pay higher % in taxes but im a sole proprietorship (one man show here) i only pay 15.3% for self employment tax (1099k) i live where i only have to pay federal income tax so even if i Net $50k im only paying 15.3% for self employment tax which is only $7650 again my monthly business expenses for the year (12 month period) are WAY more then $7650 i owe in self employment tax and again you cant deduct any of those BUSINESS expenses from your FEDERAL income tax you can only deduct it from your self employment tax (1099k) again many many people get Self Employment tax (1099k) and Federal Income Tax confused there 2 totally separate things Federal Income tax is what you earned for the year so earned income which is your total you get from your self employment tax (1099k) after all business deductions and what you have to report on your Federal Tax return so basically your getting taxed twice at the end of the year for being self employed your paying 15.3% FICA for the year and then whatever total you come out with from Self employment tax you are then taxed that amount under what ever tax bracket you are under as EARNED INCOME very easy and simple to understand

@bennystratton7734

4 ай бұрын

all anyone has to do is google "self employment tax" 15.3% What is self-employment tax? The self-employment tax rate is 15.3%. That rate is the sum of 12.4% for Social Security and 2.9% for Medicare. In any business, both the company and the employee are taxed to pay for the two major social welfare programs: Medicare and Social Security. In the eyes of the IRS, individuals who are self-employed are considered both the company and the employee, which is why they must pay both portions of this tax. Social Security tax is assessed at a rate of 6.2% for an employer and 6.2% for the employee. Therefore, a self-employed worker is taxed 12.4% (6.2% + 6.2%) as they are considered to be both an employer and an employee. 3 The Social Security tax is applied only to the first $160,200 of self-employment income earned in 2023. That amount increases for 2024 when it will be applied to the first $168,600 of income. Medicare tax is assessed at a rate of 1.45% for an employer and 1.45% for the employee. Therefore, a self-employed worker is taxed 2.9% (1.45% + 1.45%) as they are considered to be both an employer and an employee. There is no income limit for Medicare taxes. The total self-employment tax rate is 15.3% (12.4% + 2.9%) its been like this for 25 years (as long as i have been a full time reseller) again the more you can deduct for business expenses from your gross the less of the 15.3% you have to pay to self employment tax again which is different from Federal Income tax (which is your earned income tax you pay)

😎🙏

I am really quite surprised about the comment of how much another reseller makes. Do the math! Most of them clearly state that the sales are Gross Sales. If you're a seller yourself, you know exactly what it costs.

Will you get back to me I have got a card you can tell me whats it worth it's a rookie card can you help

@TheSteveMeister = Troll

My advice for a new reseller. Research and study the topic for 3 months before starting. Especially how shipping works.

@WellnessWizdom

4 ай бұрын

3 months,lol. If it takes you 3 months to figure out how to do this, you shouldn't be doing it.

@Art-ph3tu

4 ай бұрын

​@@WellnessWizdom he should have said get a Good digital scale, and printer.

@bennystratton7734

4 ай бұрын

very easy just plug in the dimensions and weight set it to calculated shipping and your all set to hell with free shipping or flat rate shipping! buyers need to start living in reality!

@joeambly6807

4 ай бұрын

Lmao, or learn as you go and realize some mistakes will be made. Sorry but watching influencer videos for 3 months isn't an education

@bennystratton7734

4 ай бұрын

@@joeambly6807 100% only real way to learn to resell is get in the trenches and by trial and error