Transcribe of “How To Own Stuff For FREE: Minimize Cost of Ownership”
– Hi guys, Neil Waterhouse. This weeks video is about how to buy things, use them, have some fun with them and sell them at a profit. I’m going to show you how to do the strategy today, without spending one cent of your own money. Or anyone’s money.
Wealth is the transfer of funds
This is how it works. Basically the whole thing works because of this phrase I learnt from Warren Buffett, many years ago. “Wealth is the transfer of funds, “from the impatient to the patient.” Now, just to repeat that. “Wealth is the transfer of funds, “from the impatient to the patient.” Everybody knows that you can make a profit, you know by buying low and selling high.
Trade up or Trade up formula Strategy
But, of course the secret to any business or methodology, is how do you do that? The strategy which I’m going to show you now is what we call Trade up or Trade up formula. And you can use it to acquire items that cost $10 and also items that cost tens of thousands of dollars. Here’s an example of a boat we purchased for $6,000 and sold straight away for eight and a half. Here’s another example of a chaff cutter which we purchased for a thousand dollars and sold it for $6,500.
Another example of Trade up formula Strategy
Here’s another example of a quad bike we purchased for $350. Had some fun with it, with the family when the kids came and stuff. Then we sold it for 900 bucks. Now these are just a few of the many examples we’ve been doing for my next book. But all these items, you can use them, have some fun with them and sell them. And I’ll show you how now. Now you don’t have to do this on expensive items like boats et cetera.
Use the exact same strategy with anything
You can use the exact same strategy with anything. As I’m going to show you in two secs. I just prefer to do this though with more expensive items as you make more profit per transaction. Now the way this strategy works, is some human beings are impulse buyers and other human beings are not. Now impulse buyers are not prepared to wait. And these people often pay a premium. There’s a saying with boats.
The two best days of owning a boat, are the day you buy the boat and then the day you sell it
The two best days of owning a boat, are the day you buy the boat and then the day you sell it. In other words, people get really excited when they buy a boat, but when they sell it they can’t wait to get rid of it. Normally in their mind they’ve already allocated the money for the next boat, you know or the next toy or whatever they’re going to do next with the money. So they can’t wait to get rid of it. Now this isn’t just with boats. It’s with most things. People get really excited about buying stuff and they also get really excited about getting the money from the item they’re selling.
People get really excited about buying stuff and they also get really excited about getting the money from the item they’re selling
So they can use that same money, for their next shiny, new object. Now, when you sell used items, anybody who’s got any experience with selling used items, knows that you’ll always receive many low ball offers. And if you’re asking say a thousand dollars for something, you’re always going to get crazy offers and it’s just part of the game. But, like Warren Buffett says, “Wealth is the transfer of funds “from the impatient to the patient.” I think of buy as being in a triangle. When you sell something, you want the people at the top of the triangle that are going to pay the most money for the item.
There’s always a lot more people at the bottom of the triangle than at the top
There’s always a lot more people at the bottom of the triangle than at the top. But of course, you don’t want to accept offers from those people at the bottom. Now whenever you sell anything, there’s some buyers who will, they’ll only pay bottom dollar. There’s always buyers who will pay more. Albeit less of them. These are the people at the top of the triangle. If you purchased an item for say $700, you list the item for say 1,300 and you except offers over a thousand dollars. You’ll always get offers so its very important to always list the item for 15 to 30% more than you’re willing to accept.
With the trade up strategy, you don’t need to be in a hurry to sell to the stuff with means the world tilts in your favor
As you’ll see in a sec, with the trade up strategy, you don’t need to be in a hurry to sell to the stuff with means the world tilts in your favor. As you can be the patient one. In fact sometimes, you just don’t wanna sell that nice boat or toy but part of the strategy is to continually grow your assets without spending any money. So you know, when you do let go of that boat or that toy, then it will be only a very short amount of time, until a nicer, newer model one is sitting in your driveway.
How to buy things cheap
I’ll show you in a sec how to buy things cheap but before I do, think about this. Now I’m not saying to do this, just think about this. Imagine if you listed all your possessions, on say, Ebay today, for say 35% more than their replacement value. Now again, I’m not saying to list everything you’ve got including great grandma’s wedding ring. Most of us have stacks of things lying around which can be traded up. So I’m not saying to sell them off, I’m saying trade them up. You sell them and increase their net worth. Imagine if say, every Saturday, you listed one of these items. What I mean by trade up, by the way is, you sell an item like a sewing machine, which you already own and at a higher price, at the top of the triangle.
Buy low sell high
Then use that money to purchase a better sewing machine. For exact the same amount of money, as you sold your older one. In other words, buy low sell high. For my next book, we’re trading up an old lawnmower which cost less than a hundred bucks, or a Jeep worth over $30,000. We’re doing this by selling the old lawnmower. Then buying a better lawnmower. Selling that lawnmower, then using the funds to buy an even better one. Then we would go into a boat et cetera, which is what we’re in the middle of doing at the moment.
This is trade up which is simply, buying low and selling high
And this is trade up which is simply, buying low and selling high. Okay, so how do you buy low? My favorite place to buy low is Gumtree and Facebook Buy Swap Sell. The reason I like these two places, is you can do all the negotiation without leaving your house. For instance with Gumtree, you can do all your negotiation with SMS. And if you have virtual assistants, in places like the Philippines.
Don’t have to have VA’s doing it for you
‘Cause if you’ve already got a drop ship business or an Ebay Amazon business or whatever, you’ve quite possible already got VA’s working for you, so that’s my favorite but you don’t have to have VA’s doing it for you. So as an example, if you’re buying a boat. We first send an SMS to the seller asking how old is the boat and are there any problems with it? That’s SMS one. We then reply and send an SMS saying something like, you know, I’d like to make an offer on your boat.
Give a reason for your low offer
I can not offer you XYZ for an XYZ your old boat, with XYZ wrong with it, I’d like to offer you XYZ cash. Sorry for the low offer and then give a reason for your low offer. This works particularly well, if you don’t have a lot of money. As you can say, sorry for the low offer, I’m not very financial. In other words, you’ve given them a low offer. A price and they go, oh god, that’s a low price. They’ve kinda got a bit upset about that. But then you’ve come back and said, sorry I’m not very financial.
There are many different SMS scripts we’ve used over the years
But you know, there are many different SMS scripts we’ve used over the years. And you need to configure that last of that script, to make it suit your own personal financial position. Now to find items to purchase. The way we find items, is to set up automatic alerts, in places like Ebay and Gumtree. As Ebay and Gumtree can email you every day, items that meet your search criteria. Like sewing machine, boat, jet ski, mountian bike or you know whatever floats your boat. Pardon the pun. So have a play.
Trade up strategy as a wealth gain strategy
We have a lot of fun with this strategy but it’s best to think of this strategy, or this trade up strategy as a wealth gain strategy. And not a cash flow strategy. The trade up strategy is not designed as a cash flow strategy to produce a weekly income. It is designed as an asset gain strategy. And you know also to have fun with the toys. You know asset gain strategies and cash flow strategies are two totally different methodologies. You know for cash flow, anybody who’s been following me for sometime knows that what I’m most passionate about, is selling drop ship and import items on Ebay Amazon and our own independent websites.
But for Wealth gain strategy, most people can do this trade up strategy on the side
But for Wealth gain strategy, most people can do this trade up strategy on the side, without having to outlay any money. You know, what have you got lying around which you can list right now and trade up? Could be a sewing machine, a box trailer, an old fridge, an old pushbike, an old computer. Or you know, not even that old. But you can keep trading them up. Imagine if you listed one item every week. And continually traded these items up forever.
List more sell more
That’s all for this week. Please scroll down and leave me a comment below. Until next week, list more sell more. This is Neil Waterhouse. Hey I got to show you this. I know we’ve got some cow lovers here. We’ve just had a new calf and the kids will really love her. This is, Fergie’s the mum and the little calf is Buttercup. And she’s so cute, and I know I’ve got a few cow lovers out there. So we think she’s very special and my daughters think she’s very special So again, that’s all for this week. See you guys next week.
Please leave me a comment below and let me know what you think.