I remember I was younger. Somewhere at 18-23 years. I can’t recall exactly.
I was doing some chores for my uncle. He had a restaurant in front of his yard, but he sold that because he made a business out of debt and now debt is killing him.
I was shoveling snow, doing some designs, reinstalling windows, prohibiting children to use computer on certain hours. Man all that is stupid, but my uncle told a good thing.
First thing. Before you buy.
He told me that everytime he goes to buy something, he always thinks for how much he could sell that thing.
And that’s entrepreneurial thinking right here.
If you buy something, you always want to add a margin on a thing. Many people buy useless things, drop the price and sell it on classifieds. I used to do that, but now I’m not buying things that I can’t sell for a margin. When you sell cheap you can go as cheap as you want, but when you sell for a margin – you can’t add a margin so high because nobody would buy.
That’s how the companies are made. Typical computer shop buys things in bulk – and that’s why they get a discount.
But when you have no money to buy in bulk – you’ll rarely will sell something with a margin.
When it comes to selling physical products – you need to think about products such as these.
You need to think about products such as these. It’s design is simple and production costs are cheap – these things are very required to the market and it’s creator is really wealthy if he ain’t dead yet.
If you have an idea, about a product – you can create a sketch and technicians will create it for you. It’s not that a big of a deal.
Or another cheap product is something like this.
You see these things for sale almost for 1-2€ when the production cost is 0,11€ per unit.
This is how you should think.
Instead of buying one thing without any discount – you should think how to buy in bulk. The cheaper the production cost, the bigger the margin. 1-2€ is 100-200% margin. That’s profit man.
Think primitive. And people who sell these for 0,11€ per unit, have a margin. So the production cost of this is probably 0,01€.
So before you buy something. Always think about the margin. You don’t want to sell and lose profit. And always think bulk.
You can sell these things on the street. And they would go. It’s just a matter of design.
Always think profit before you buy.