How to Profit on Best Buy’s Wii Game Sale
Sundays are one of the best days to find items to resell, because it is when all of the retail stores release their weekly advertisements in the Sunday paper. Often times there are such great deals on items that you can purchase the product and then resell in on Ebay or Craigslist for a profit. You have to shop carefully, because not everything has a good resell value and Ebay/Craigslist bidders are also expecting their purchase to be a good deal.
As you start to comb the Sunday ads each week you will get better at spotting which items have resell potential. Here is one such deal that I found this Sunday:
Best Buy has on sale a "Price is Right" Wii Game for $19.99. I checked Ebay and sure enough the average selling price is $30 with some selling as high as $35. Now you might expect the Ebay prices to come down a bit, because many potential buyers will have spotted the same deal at Best Buy. But many more will not and a quick check 3 days into the sale reveals that prices are staying steady on Ebay.
In addition, the key to all successful Ebay turn-arounds is keeping costs low and layering deals. We will get to layering in a second. Here's a screenshot of the recent Ebay auctions on this item:
BestBuy.com limits customers to 3 of these items, so I will use that number as a baseline. However, one could easily increase the quanity and profit by purchasing from local Best Buy stores.
Here's the math:
Cost of 3 DVDs - $59.97
Cost of Tax - $4.20
Total Cost of Acquirement: $64.17
Ebay fees: $7.43
PayPal fees: $3.51
Shipping fees: $6.69
Total Cost of Selling: $17.63
Expected Selling Price: $93 ($30 each + $1/shipping that we will charge each winning bidder)
-Cost of Acquirement
-Cost of Selling
=Total Profit (3 items): $11.20
It took me about 5 minutes to buy the items and it will take me about 5 minutes to create an Ebay ad for each item all for a profit of about $11. Not a huge profit, but I'm going to make it better....
Welcome to Layering. Normally when I try to turn a product around on Ebay, I try to purchase with a coupon to make the deal that much better thus increasing my profit. In this case, I couldn't find any online coupons for Best Buy, but fear not Penny Hoarders, I have other layering techniques.
Layer #1 - Online Rebates
Every time I buy something online for myself or for resell I use an online rebate site. These are sites that give you cash back for shopping with their affiliates. One of my favorites in MrRebates.com because they give you $5 for FREE just for signing up with them. They also pay out 2% on all Best Buy purchases meaning that I'll earn a cool $6.28 for first clicking on the Best Buy link on their site ($5 signup bonus + 0.64 cash back)
Ebates.com is another great rebate site that offers cash back on purchases. I often check both sites to see which is giving a higher cash back at a particular store. In the case of Best Buy, Ebates.com only offers 1% cash back meaning I'll only earn 0.64 for using them. However, they also have a $5 signup bonus, so if you are already a member of MrRebates.com this may be your better deal.
Profit Added: $6.28
Layer #2 - Best Buy Rewards:
Best Buy Rewards is completely free to signup with and you earn free Best Buy Gift Certificates for entering your rewards card number at checkout. You earn 1 point for each dollar spent. 250 points earns you a free $5 gift certificate. You can use this gift certificate on yourself or turnaround and resell it.
Profit Added: $1.28
Layer #3 - Credit Card Rewards:
Always use your reward credit card when buying items to resell. It's make the deal that much better. I like to use my Discover card because I earn 1% back on every purchase and I earn 5% at select stores. Just make sure you pay off the card each month. In this case I'll use it to pay for the games at Best Buy, pay for the shipping, and to pay for my Ebay fees.
Profit Added: $0.78
Total Profit: $19.54
Estimated Total Time: 30 minutes
Not bad and you can start to see how those pennies add up. Now there were many more deals like this in the Best Buy ad this Sunday so keep searching and you will see how the profits can really start to escalate, especially if you are buying multiples of each product.
Good luck Penny Hoarders!
Update: A reader just alerted me to a 10% off coupon at Best Buy making this deal even better. Here is the link.