2 Engineers, 1 website.

 

Financial Jiu Jitsu will teach you how to gain leverage in the real world, step by step, until you are confident you no longer need more.

The "right" price for a flip

The "right" price for a flip

We haven't been doing much flipping lately. I have been busy with remodeling, vacation, family, work, side jobs, etc... I know that is not a very good excuse. Especially because I, In fact have been flipping things without realizing it or writing articles on it. It has just become an ingrained part of my personality and I didn't even notice it was there. 

Besides slowing down my car flips, I have slowed down my musical gear flips as well. I probably shouldn't do this because I make a killing on it, so if anything I should be speeding it up not slowing it down! right? Ok here I have an example:

Yes it's complicated

Yes it's complicated

Whew that was a hard one. So here's the scoop:

  1. I bought the Mesa F100 amp on craigslist for 420$. I had to buy a handle for 10$ on ebay hence the 430$ price. It had microphonic preamp tubes so I swapped some out of my old tube box and it sounded pretty good loud, but not great to my taste. So I listed it on Craigslist. Somebody hit me up to trade so I traded it for the Bugera 333XL and the Schecter C1 A/E. Both in decent shape. 
  2. The Schecter C1 A/E sold for 299 + 80$ shipping on Reverb. It only cost me 39$ to ship based on my Reverb shipping discount. After Reverb's fees I made 327$ total on this sale. 
  3. Now I have the Bugera listed for sale. What is the right price for this amp to make me happy?

So far I have 430$ in and I have got 327$ out. That means to just break even I would need 103$. Welp I could get that tomorrow if I dropped the price and added shipping accordingly, but that would also be the case for 200$ or even 300$ maybe. So how much is the right amount when I am not in a hurry? That's right, market value baby. 

The other 5 bugeras on Reverb right now are an average price with shipping of 453$. The cheapest one is 365$ shipped. In theory I could get average price if I was comfortable waiting. Now I have had this amp for a few months and it is just sitting in a corner even though I love the tone. Why you ask? Because I bought the American made version the Peavey JSX with mercury magnetics transformers and it sounds even better! Just like Mr Patrucci. I digress...

I could get 453$ if I waited a while. Well I'm kind of over it so I am dropping the price to 399$ with free shipping that should get it off my plate pretty quick here. A trip across the states and reverb's fees should net me 280$ in my account from this. 

So IN TOTAL that would give me only 177$ for this flip. Oh well better luck next time DDave that's only 41% ROI in 4 months. Wait a minute, when I say it like that it sounds pretty damn good. Also I did quite enjoy playing the F100 and the 333XL for a while. The 333XL even made it to a couple gigs with me and the tone was different but very enjoyable. 

AYO hole up-
If you will note here I am counting my chickens before they have hatched!

Yeah bad financial practice in general. I guess you could call it estimating?

Yeah bad financial practice in general. I guess you could call it estimating?

I can justify this because this article was literally devoted to predicting future gains and basing it upon supply and demand. Maybe I will do an update to this article when the amp sells so you know I am not just BS'ing you. In the meantime, tap into that vein that is called trust and pass the needle to me when you're done. 

Update 4/14/17:

Sold it. Actually ended up with substantially more than $280 in my pocket, more like $330. That puts my ROI up to..... 52%. Sweet! Off to flip something else. Man I love this job sometimes

That went downhill quick

That went downhill quick

Another MESA flip! Strategy 500 edition

Another MESA flip! Strategy 500 edition

The Un-Flip: When You Keep The Car You Were Going to Sell

The Un-Flip: When You Keep The Car You Were Going to Sell