Due Diligence
- In order to find a great deal, you have to know the market value of your product that you’re after. Proper due diligence and research before going into a niche is important.
Knowing what you’re getting into and having the basic knowledge of a product will give you a step ahead to your competition.
Before picking a product that you will buy and sell, you must ask yourself - What is the average price for this product? What are people willing to pay for this product?
- Is this a high volume product?
- How many of these do I want to sell per week?
- How much am I willing to pay for this deal?
- (Set a maximum amount that you’ll pay something and stick with it→ My maximum price that I’m willing to pay for a treadmill is $150)
- Will the profit be worth it?
- Keeping it local or including shipping
- Depending on what niche you chose, you are going to sell locally or include shipping.
We recommend including shipping when the product you sell is light and easily sendable. Think small plants, cell phone covers, computers, …
If you chose larger items, we strongly recommend not to include shipping.
Just sell locally, you’ll make plenty of sales! - Looking for deals
- Keyword Method
- When you are going to look for deals on Facebook Marketplace or Offerup, there are a few things to keep in mind.
There are two main methods that we are going to teach you on how to look for deals. The keyword method and the recently added method.
Let’s take a look at the keyword method first. And as always, let’s take treadmills as an example.
Go over to Facebook Marketplace
On Facebook, go over to the marketplace, and type in the keyword “TREADMILL”. |
You then have to click on “LOCAL ONLY” (It would not make sense to see all the other treadmills 2000 miles away from you. That would definitely not be worth the drive…)
Choose “local only” option
You’ll now see the list of treadmills.
List of treadmills show up
What is important when you look for a deal, is the time factor.
Money loves speed is a saying that is applicable to our process too.
Great deals won’t last long - Like 20 min at most an hour
Good deals are gone before you know it - Like in a few hours
Average deals you’ll find all day long - and stay on there for about a day
Bad deals are there to stay - avoid them like the pest!
There are of course always exemptions to the rules, but this gives you a good idea.
We want you to focus mainly on great and good deals.
So that means that you will have to look intensively for them and take action immediately!
Sometimes, but it's rather an exemption, you can find a good deal that has been on FB for more than 2 days. But the rule of thumb is, GREAT DEAL? ACT FAST!!
To find these great deals, we have a few hacks we’ll teach you.
Facebook's algorithms work in chaotic ways sometimes and the newly posted products will not always show up on the top.
So you’ll sift through the treadmills that you might feel are a great deal.
Click on the ones that you select.
In order to find a great deal, you have to know the market value of your product that you’re after. Proper due diligence and research before going into a niche is important.
You must ask yourself
Money loves speed is a saying that is applicable to our process too.
Great deals won’t last long - Like 20 min at most an hour
Good deals are gone before you know it - Like in a few hours
Average deals you’ll find all day long - and stay on there for about a day
Bad deals are there to stay - avoid them like the pest!
There are of course always exemptions to the rules, but this gives you a good idea.
We want you to focus mainly on great and good deals.
So that means that you will have to look intensively for them and take action immediately!
Sometimes, but it's rather an exemption, you can find a good deal that has been on FB for more than 2 days. But the rule of thumb is, GREAT DEAL? ACT FAST!!
To find these great deals, we have a few hacks we’ll teach you.
Facebook's algorithms work in chaotic ways sometimes and the newly posted products will not always show up on the top.
So you’ll sift through the treadmills that you might feel are a great deal.
Click on the ones that you select.
In order to find a great deal, you have to know the market value of your product that you’re after. Proper due diligence and research before going into a niche is important.
You must ask yourself
- What is the average price for this product?
- What are good brands of treadmills?
- How much am I willing to pay for this deal?
- Look at due diligence sheet for all questions
Recently added method
Besides entering the keyword “treadmill” in the search bar on Facebook Marketplace, you can also scroll through your newsfeed.
What I like about that method a lot, is the “RECENTLY ADDED” section. There you can find great deals because they were just added a few minutes ago.
Also, if you are consistent in your searching for deals, and you focus mainly on 2 products that you are selling, Facebook will show those 2 products in the recently added section.
That way it’s almost guaranteed that you’ll find a good deal in no time!
Also the “TODAYS PICKS” can be a good section, especially if you stick with one or two products that you sell, since Facebook's algorithm will show things that you will likely buy. Let’s say that you focus on selling washers, dryers and treadmills. Then “today's picks” will almost always be one of those products.
**** Pro Tip*****
It might be tempting to scroll and click on other, non related items on the FB marketplace. But if you want to get the best results, only look and click on items that you are selling.
Again, Facebook's algorithm is pretty advanced and it will show other irrelevant items that you are not selling if you keep clicking on random stuff.
And then you might miss out on a great deal!
So FOCUS on only looking for what you are selling!
Refresh the page
Facebook will update all the time when people make a new post. It’s important that when you are looking for deals, to refresh the page.
That is so for both methods (the keyword method and the recently method)
- Budgeting
So now that you know how to find good and great deals, you are going to learn to become more aware about your cost and profits.
Finding a great deal is awesome. Sometimes you can find a deal that is worth more than $600, and they are giving it away for free.
Other times a good deal can still be making you a profit of +$150.
I want you to become aware and document your journey. This course is meant to help you on your path to more financial freedom and that goes hand in hand with more responsibility. It would be ashame if you would spend your hard earned money on dumb stuff.
So, whatever niche you chose, you have to set limits on how much you are going to spend on one deal. You can write that down in a notebook if you wish. Try to stick with that limit price.
*** Pro Tip ***
Whenever you make a sale, put 10% of that sale in a special place. Can be a piggy bank or a purse or something.
The rest of the money that you make, you can use for groceries, bills, gas, and everyday expenses, but that 10% that you ‘put away’ you don't touch. LIke at all.
What you will see after a while is that that money is stacking up.
Whenever you reach $1,000 (that means that you’ve hit $10k!) you separate it in an envelope or something.
This money you can use for emergency funds, investments, mortgage, college funds,...
It’s a sad truth, but in school they don’t teach you stuff like this.
“Keep the poor poor and make the rich richer”.
Most of the population of America cannot save, spending their money immediately as their paycheck comes in, which keeps them from building up wealth.
But with this little hack, you’ll be well on your way to riches. Mark my words, those little bits add up!
How me and my wife do it….
We have a budget that we stick with if we find a good deal. For a great treadmill in excellent condition (Brand: NordicTrack, Proform, True, + commercial treadmills)
we would pay no more than $150.
We know that we can sell a treadmill like that for $350-$550+, if we include (free) delivery (more about that later!). So for us, a profit of $200 makes it worth it.
From that $200, 10% of that (=$20) goes directly into the purse (that's how we call it). I count the money every night that came in that day and I put $150 in my wallet for the next day.
We set a limit of spending $150 a day but to be transparent, we can very rarely exceed this limit if we find a great deal.
My wife documents all the sales we made, and our profit for that day (more on that later)
We stick with the budgets that we determined.
The prices that we pay for deals:
Washer and Dryers
Free - $100 → Washer and dryer - Ugly set
Free - $150 → Washer and dryer - Nice set - clean looking - top loaders (GE, Whirlpool, Maytag, Kenmore, …)
Free - $250 → washer and dryer - Nice set - Top loaders ( LG and Samsung)
Fridges
Free - $150 → side by side or french door fridge (best if stainless steel, but white or black is fine too) (Whirlpool, Samsung, GE, LG, Fridgeair, …)
Free - $250 → really nice looking french door fridge, no scratches, perfect condition. (LG, Samsung)
Treadmills
Free - $100 → any good working treadmills that inclines
Free - $ 175 → excellent condition treadmill, inclines. Brands: NordicTrack, Proform, True, Vision, …
Ellipticals
Free - $100 → any good looking elliptical that works
Weights
Free - $0,50 per pound
Sectionals
Free - $150 for a nice looking, clean sectional
*You can copy these limits, or set your own.
If you have different products than these, just go back to your due diligence sheet to help you determine your limits.
SECOND TASK
Make a list of the products that you will sell, write them down.
Next to them, set the limit price you are willing to pay for that product.