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Welcome back to another episode of the Resellers Mindset Podcast.

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My name is Mike, also known as the used book guy on YouTube,

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along with my friend and fellow full-time reseller, Johnny B.

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We help people start and grow their reselling businesses from the ground up.

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We also have a weekly zoom call and private discord for all YouTube members.

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Head on over to youtube.com backslash use book guy to join the channel and gain

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access to the full length podcast zoom call and private discord today.

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Let's get into this week's episode.

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What is up everybody?

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Welcome into episode 33.

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Johnny B's holding in his lamp already.

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We have friendly banter before we do these things.

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And after we do these things, if you only knew what we talked about, then

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that's where the real juicy stuff is.

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Today's topic though is basically the lifeblood of any reselling

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business is cashflow.

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And for us as being media sellers, it's, I mean, that's all there is, is

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cashflow when it comes to selling media.

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It's different for other categories, other business models, but bulk media.

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I mean, we're just going to kind of dive into it here and JB is going to take us

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away with kind of what cashflow looks like for his business and you know, is

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he chasing a 20 hours, you know, bill, or is he fine with taking a dollar and

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spending a dollar somewhere else?

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So take us away eBay man.

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All right.

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So cashflow for those not in the know is basically money coming back to you

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that goes into the bank.

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It's clear.

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It's all yours to spend and do what you want with.

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Yay.

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So with that, you want continuous cashflow and you can get more cashflow

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with multiple revenue streams.

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So like if you did eBay and Amazon, kind of like Mike here, that's multiple

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streams to generate a larger cashflow pile.

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The more cashflow you have, the more options you have.

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As without the monies, you can't do the things you need to do.

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And cashflow is after your expenses, in my opinion, like if you've got a rent

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or a storage unit or a warehouse like myself or half a warehouse like myself

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and your gas that you need to go sourcing with your cost of goods, all this,

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that, and the other.

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Now, what I like to use my cashflow is just buying more product or what I've

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done recently is a lot of my cashflow.

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My biggest expense right now is my employee.

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Honestly, it's more than my rent.

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My rent is pretty cheap.

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I got lucky, but most of that just goes toward giving her more hours to work, to

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have a bigger output, which will generate more cashflow.

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Now, I'll pause there because I want to talk about catch up time with cashflow

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and I'll let Mike talk about cashflow in general.

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Yeah, cashflow for media, it's so intensive.

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You don't really think about it when you first start, right?

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Because you just, you know, you're out scanning books, CDs, DVDs, and you see

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the accepts and you see it's going to pay you $5, right?

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That's what the phone app says.

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But in actuality, you're not going to get that five hours for, you know,

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three, four weeks, six weeks.

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So you're, you're giving your dollar up today to get five or 10 in a month.

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So what happens here is if you get to a point where you're giving up too many

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dollars in the front end, you're going to have nothing pretty quick here and

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you're going to have nothing but inventory sitting there.

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Now the benefit to Amazon compared to eBay is most Amazon sellers don't

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have a death pile, right?

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So people send their stuff in Amazon, it'll sell, it's just going to take time.

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Now, if you're doing only eBay, your dollars, if you don't take the

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initiative to list the items, I mean, you, you got a cashflow problem very fast.

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And I don't even think it relates to media.

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I think overall, no matter what category you're selling, there's so

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much money that's just tied up.

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And I guess we can kind of say like, if I gave you a dollar in a year or a dollar

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today, like you would spend a dollar much more smarter in a year than you would

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today.

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So even if you buy like bad buys, it's just part of business, right?

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If you can break even or even get less with Amazon, right?

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Their fees, you could sell something for a quarter loss and it still will be

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cheaper than having Amazon dispose of it.

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So if you can take that money back out, you're going to basically spend it

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smarter today and you should be finding better quality items because, you know,

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as you're out there sourcing, you're going to develop relationships.

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You're going to know what stores are better, where to find the better items.

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So if you get a dollar today, it's not going to be, you know, as valuable as a

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dollar in 12 months.

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So say you have something sitting there for a while and especially with eBay,

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right?

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Best offers.

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You get a low ball offer for, you know, five bucks.

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You had it listed for 20 bucks.

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Well, you know, I would argue that take it, take it and go, right?

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It's been sitting there for a while.

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You can better redeploy that money today and you can turn that five dollars

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probably into a lot more than the $20 you're going to sit around and never get

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waiting for it to sell on eBay.

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Right.

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I mean, there's something you said for longer dollar later, if you wait and

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decline offers, but for me, I'm with Mike, I'm going to take the money and run and

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reinvest it to get more dollars.

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That's all this game is, is compounding your money over and over again with

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your, you know, the way to do that is with cashflow.

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Cause if you can't buy more product to then list or send into Amazon, you

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can't generate more cashflow.

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You're just going to get the residuals from the previous work you've already done.

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That's the, that's the long game for us is just pumping most of it back into the

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business now where I say most here.

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I mean, you got to pay your bills and stuff.

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And sometimes occasionally you got to pay yourself.

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Um, occasionally not much in my opinion, if you're taking this, uh, beyond the

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hobbyist and possibly the part-timer, um, part-timers can do this on a single

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level and they can pump the majority of their money back in.

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Maybe they wanted to use their cashflow to go on cruises or vacation of some kind.

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That's cool.

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Uh, but for me, I'm going to pump it back into the business.

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Most of it, um, I'm going to pay for my personal bills and my business bills.

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Cause they're different, right?

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Outside of that, I pump it back in.

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And what I mean, my personal bills, I, I, I hungry.

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I like to eat.

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So I got to have a meal every now and then keeps me going.

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I like my coffee too.

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Got to have coffee.

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That's a personal bill, not a business bill.

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Do you, uh, do you buy like premium Starbucks coffee or do you buy like

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the middle of nowhere, Texas, somebody made it in their backyard kind of stuff?

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It's a breakfast blend, medium roast that I pick up at the grocery store for 5.89 a

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bag, it takes me a week to go through the bag, but that, that fills not one cup of

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coffee, not two cups of coffee, but three cups of coffee every day.

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Those three cups of coffee is more coffee than I drink probably in three years.

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Uh, but Hey, keeps you going.

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Right.

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It's coffee a day, but I'm getting on topic here.

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I pay for my personal bills and my business bills.

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That's what I pay myself.

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Uh, but I don't really pay myself.

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I pay myself to keep going.

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Essentially your bills, your bills though.

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That's like paying yourself.

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Right.

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Because most people's paycheck go to their bills, right?

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I consider when I pay my bills, it's basically, you know, I'm paying myself

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to be able to afford the, like the, the basic necessities of living.

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Right.

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Right.

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And I took a trip recently, a sourcing trip, uh, four or five days worth.

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And we ate out.

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I normally don't eat out, but it was like no choice cause I'm out and about.

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So it was kind of nice.

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Um, and it's a write-off.

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It's a business write-off actually.

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Uh, cause the employee was with me and we discussed business while we were eating.

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If you didn't know, you can write down what was discussed, how both of you sign it.

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That's your meals now, a write-off.

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Did you splurge or were you a dollar menu guy?

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No, I splurged.

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I splurged.

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I mean, I wasn't in East Texas anymore.

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I was in the big city life.

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So yeah, I mean, gotta, gotta spoil myself a little bit.

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Um, I do think though, like kind of we're on the topic of like fun things.

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I do think it is important even for somebody like you or like me is like to

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maybe set like, maybe it's a percentage or maybe, you know, like when me and

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Deb were trying to get out of debt, like we used to use like an envelope system.

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Right?

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So this is an envelope for fun money.

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Yeah.

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Yeah.

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So like, I do think it is important for people to kind of get something back out

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of it, right?

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Because if you just keep, you know, dumping your money into inventory, especially

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if you're not listing, especially if it's not selling the way it needs to sell,

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it's going to be lights out for your business pretty quick.

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So I do think it is important to kind of take a little bit of money out and be

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like, Hey, well, you know, out of the thousand dollars I made this month,

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reselling a hundred dollars is for me to go to the casino and spend the slots.

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Like something like that.

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Sure.

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Sure.

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Yeah.

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I mean, this was technically a vacation for me because I hadn't been out of the

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warehouse in a year and four months.

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Well, I hadn't been out of, cause I did storage units before.

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I hadn't been out of my business for about a year and four months.

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So it was, it was a vacation for me, a working vacation, but a vacation.

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Nonetheless, it felt good.

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It felt a little weird, but it felt good at the same time.

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Wasn't like when you first started, like, at least I can admit that I didn't

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realize how much money I would have to put into building an Amazon business to

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get it to the point where I was consistently getting, you know, thousand

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plus dollar paychecks every two weeks.

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Like I, I 100% consider and say, I didn't, because with eBay, right, you go buy

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something for two bucks, I list it, it sells for 40, I get that money right then

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and there with Amazon is different.

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And I, I was not prepared and you can, I mean, I'm curious to see what your

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mindset is behind this, but like it's, it takes a lot of money, even at a dollar

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items, like I'm buying books for a dollar.

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Like you're talking thousands and thousands of these you have to find and

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buy and finding them also has to be taken into consideration because that's

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your time, that's your gas, that's your vehicle expenses, you know, that's your

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food while you're out traveling.

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There's so many other expenses and it kind of caught me off guard, honestly.

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And I do think it is one of those things a lot of people don't talk about is like

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when you first start out, you want to run as fast as you can, but I

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highly caution people to walk slowly.

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Let the, let the money start flowing back in and then you kind of can ramp up.

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Well, I'm going to have a different approach.

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I took a different approach than most would, because I left my

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corporate job with some money, both saved up and I was a partner.

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So I got it.

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I sold my shares because we operated like a law firm.

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I sold it back to the company and they wrote me a nice big check.

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So I was good for a year, but I already saw that it was working.

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Cause I hadn't jumped in the full-time ship.

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But when I saw that it was continuously going up after three months, I'm like,

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okay, it compounds.

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This is neat.

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So that's where I made a decision to get my business's notice three months.

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So then I saw over the course of the three months, cause I could, I could take

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it back within three months, right?

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If I didn't see it continuously go up just to make sure.

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So over six months span, I saw it was compounding, but I wasn't making.

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Enough to live on when I exited the company, but I had money in

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my back pocket to survive on.

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I just had about, okay, I got to make this work in a year.

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And I did, and I made more money than I projected I would make actually.

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I worked really hard for it.

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I mean, I've talked about the long strenuous hours I work here, but as far

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as what you're mentioning, the expenses, no, I didn't factor that in at all.

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I mean, I was over buying left and right.

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And then that caused me, well, I got nowhere to put these.

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I got to get storage units.

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Then one unit led to two, two led to three.

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So it was continuous.

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Well, here's another a hundred dollars a month.

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Here's another a hundred dollars a month.

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Here's another a hundred dollars a month on top of the cost of goods I was getting

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and the travel gas expense you're talking about.

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And then I had to buy computers and then I moved in the warehouse and then I got

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more computers and office supplies and the bubble mailers they don't tell you about.

236
00:11:29,960 --> 00:11:30,960
There's a cost there.

237
00:11:31,000 --> 00:11:36,920
I mean, I get the little eBay gift certificate, whatever thing that I get.

238
00:11:36,920 --> 00:11:39,240
I get the gift certificate, whatever thing that I use.

239
00:11:39,240 --> 00:11:40,880
But sometimes I have to order more.

240
00:11:40,880 --> 00:11:42,280
And then I was using Uline too.

241
00:11:42,280 --> 00:11:43,160
That was an expense.

242
00:11:43,160 --> 00:11:46,440
Just figure out what kind of boxes I'm also going to need and bags I'm going to need.

243
00:11:46,920 --> 00:11:50,520
Then I brought in an employee, but basically I'm making the same, but my

244
00:11:50,520 --> 00:11:52,680
business has grown, which is the funny part.

245
00:11:52,680 --> 00:11:54,520
So all my bills are covered.

246
00:11:54,520 --> 00:11:59,960
All my expenses are covered, but I've added to my expense column, but I'm getting the

247
00:11:59,960 --> 00:12:03,920
same back, but eventually there'll be a plateau point where, okay, we plateaued.

248
00:12:03,920 --> 00:12:04,760
I bought everything I need.

249
00:12:04,760 --> 00:12:05,920
I have everybody I need.

250
00:12:05,920 --> 00:12:08,320
I have the space I need finalized.

251
00:12:08,320 --> 00:12:14,560
And then I start collecting a bigger paycheck for myself to either, okay, I can go bigger

252
00:12:14,560 --> 00:12:16,480
or I can maintain and stay the same.

253
00:12:16,480 --> 00:12:20,880
And just now's my day in the sun kind of deal.

254
00:12:20,880 --> 00:12:26,560
So it's like, I kind of think about it almost as like, if you started investing for retirement,

255
00:12:26,560 --> 00:12:27,120
right?

256
00:12:27,120 --> 00:12:31,040
I always say it's compounding over the years and it's kind of the same with reselling

257
00:12:31,040 --> 00:12:32,960
business, just in a shorter period of time.

258
00:12:32,960 --> 00:12:36,640
There are ways you kind of can set it on fire, right?

259
00:12:36,640 --> 00:12:39,200
Maybe you're selling in a category that's like super hot.

260
00:12:39,200 --> 00:12:40,880
Talk about all the time.

261
00:12:40,880 --> 00:12:43,360
We're going to be an iPhone seller, right?

262
00:12:43,360 --> 00:12:46,960
Your margins are less, but it's going to sell the same day you listed.

263
00:12:46,960 --> 00:12:51,920
So there's a trade off to every business model and just finding a way to get the cash back

264
00:12:51,920 --> 00:12:53,760
out of it in a timely manner.

265
00:12:53,760 --> 00:12:55,200
That's all that matters.

266
00:12:55,200 --> 00:12:59,360
It's all this reselling game comes out of, because if you ain't got no money, guess what?

267
00:12:59,360 --> 00:13:00,320
You can't buy nothing.

268
00:13:00,320 --> 00:13:01,280
You can't buy nothing.

269
00:13:01,280 --> 00:13:04,240
You're not nothing new going in, nothing going to Amazon.

270
00:13:04,240 --> 00:13:05,600
You're not going to get any more sales.

271
00:13:05,600 --> 00:13:10,320
So you kind of hit a point here where you have to, because a lot of people get so excited

272
00:13:10,320 --> 00:13:15,680
when they start reselling and they're ready to just go run up the credit cards, buy everything

273
00:13:15,680 --> 00:13:19,200
they see, and they think they're going to make a whole bunch of money on it.

274
00:13:19,200 --> 00:13:21,760
And the actuality is not everything.

275
00:13:21,760 --> 00:13:28,640
Most items we find, and 95% of us resellers, it's not going to sell within the week.

276
00:13:28,640 --> 00:13:30,640
It's probably going to take two weeks, a month.

277
00:13:30,640 --> 00:13:34,720
Like, no matter what category you're selling in, unless you're selling, you know, you're

278
00:13:34,720 --> 00:13:39,360
that small percentage that's selling really high in demand items, cashflow is going to

279
00:13:39,360 --> 00:13:40,080
eat you up.

280
00:13:40,080 --> 00:13:46,960
And just understand, like, it's okay to take steps and build the Amazon business, especially

281
00:13:46,960 --> 00:13:48,240
for me being in the Amazon world.

282
00:13:48,240 --> 00:13:53,120
Whenever somebody new comes along, I'm like, hey, you want to play it slow here.

283
00:13:53,120 --> 00:13:54,800
There's a lot of factors that come into this.

284
00:13:54,800 --> 00:13:56,880
Amazon's going to hold your money for a long time.

285
00:13:56,880 --> 00:14:01,520
So it's like, with eBay, it's a little bit different in that aspect, but with Amazon,

286
00:14:01,520 --> 00:14:05,760
cashflow will destroy you in the beginning, especially if you're trying to start this

287
00:14:05,760 --> 00:14:08,320
from zero on Amazon.

288
00:14:08,320 --> 00:14:12,000
And I think, like, I don't know, let's talk about some tips, like, basically to increase

289
00:14:12,000 --> 00:14:13,040
cashflow when you first start.

290
00:14:13,040 --> 00:14:15,920
I'll just throw the one out there is get your stuff for free.

291
00:14:15,920 --> 00:14:17,520
Sell the stuff around your house, right?

292
00:14:17,520 --> 00:14:19,440
That's kind of like the cliche thing.

293
00:14:19,440 --> 00:14:22,880
Everybody says starting an eBay business, look around your house.

294
00:14:22,880 --> 00:14:24,320
You know, what can you sell?

295
00:14:24,320 --> 00:14:28,800
It's like there's plenty of items that have value in your house that you're probably not

296
00:14:28,800 --> 00:14:29,360
using, right?

297
00:14:29,360 --> 00:14:33,360
Most of the stuff you just probably been sitting around forever and you just like, oh, you

298
00:14:33,360 --> 00:14:37,200
know, if you can get 20 bucks out of it, you take that $20 and then you go turn it into

299
00:14:37,200 --> 00:14:37,600
40.

300
00:14:38,400 --> 00:14:42,320
Now, I know a thing I wish I would have done, but I didn't do starting out is buy all my

301
00:14:42,320 --> 00:14:43,280
equipment used.

302
00:14:43,280 --> 00:14:47,840
I was buying it new because I had, like I said, I had money in my pocket and I took

303
00:14:47,840 --> 00:14:52,640
the easy versus the harder thing to do and I just wanted my stuff right away.

304
00:14:52,640 --> 00:14:53,760
So I paid for that.

305
00:14:53,760 --> 00:14:54,880
I paid up for that.

306
00:14:54,880 --> 00:14:55,920
That's the thing.

307
00:14:55,920 --> 00:14:59,280
Now, if I had to do it again, I would have paid down for it and waited for it to come

308
00:14:59,280 --> 00:15:04,640
in the mail from either like places like eBay or any place else that sells you use Facebook

309
00:15:04,640 --> 00:15:05,360
marketplace.

310
00:15:05,360 --> 00:15:08,880
If I took the time, energy and effort to do that, I could have saved myself a boatload

311
00:15:08,880 --> 00:15:14,080
of money that I could have reinvested in inventory or given my employee extra hours or moved

312
00:15:14,080 --> 00:15:15,280
in the warehouse earlier.

313
00:15:17,120 --> 00:15:19,920
That would produce a lot of cashflow because I'm looking around here.

314
00:15:19,920 --> 00:15:25,600
I mean, I spent several thousand dollars in just tubs to house the things because I was

315
00:15:25,600 --> 00:15:27,120
operating on tubs for a very long time.

316
00:15:28,560 --> 00:15:30,000
I still use them to transport stuff.

317
00:15:30,000 --> 00:15:34,240
So they're still maintain their residual value and I can always sell them for any plastic

318
00:15:34,240 --> 00:15:34,640
gold.

319
00:15:34,640 --> 00:15:34,880
Right.

320
00:15:36,240 --> 00:15:40,800
My bookcases, I started getting those on the side of the road if I saw them at my six

321
00:15:40,800 --> 00:15:46,560
footers then because I wanted them to go into my storage and be able to fit under the door.

322
00:15:46,560 --> 00:15:48,400
But my dollies knew that was stupid of me.

323
00:15:48,400 --> 00:15:52,960
I should have bought them used again, taking the Facebook craigslist next door, whatever

324
00:15:52,960 --> 00:15:53,680
your approach to it.

325
00:15:54,560 --> 00:15:56,320
Another one is your shipping supplies.

326
00:15:57,760 --> 00:15:59,280
Go to the dollar store, man.

327
00:15:59,280 --> 00:16:04,720
Honestly, go to the dollar store or again, look on your used things.

328
00:16:04,720 --> 00:16:06,960
You can find a lot of things used on eBay.

329
00:16:06,960 --> 00:16:08,480
I've noticed that over time.

330
00:16:08,480 --> 00:16:11,440
I just go there when I need a little bit extra office supplies.

331
00:16:11,440 --> 00:16:13,680
I don't need a big bulk order of office supplies.

332
00:16:13,680 --> 00:16:14,880
I'll just hit eBay.

333
00:16:14,880 --> 00:16:16,160
Yeah, I'm going to wait for it in the mail.

334
00:16:16,160 --> 00:16:17,280
That's the time I'm giving up.

335
00:16:17,280 --> 00:16:22,800
But whenever I see a pile of Polly's getting low, I'm going to hit eBay and they should

336
00:16:22,800 --> 00:16:24,080
be here by the time I run out.

337
00:16:24,080 --> 00:16:26,480
Did you ever play the box game like when you first started?

338
00:16:26,480 --> 00:16:28,320
Did you just collect all the box?

339
00:16:28,320 --> 00:16:33,840
I had a whole storage unit of nothing but boxes, a 10 by 12, stacked to the ceiling.

340
00:16:35,280 --> 00:16:36,080
I remember that.

341
00:16:36,080 --> 00:16:38,080
That would get so pissed off at me.

342
00:16:39,040 --> 00:16:41,920
All these boxes in here because I'm in this tiny apartment.

343
00:16:41,920 --> 00:16:42,160
Right.

344
00:16:42,160 --> 00:16:43,440
So there ain't no space that is.

345
00:16:43,440 --> 00:16:45,840
So I'm trying to break down boxes.

346
00:16:45,840 --> 00:16:47,840
I got them stacked all over the apartment.

347
00:16:47,840 --> 00:16:50,720
But looking back, it was a smarter thing to do.

348
00:16:50,720 --> 00:16:54,160
I probably could have did it a more efficient way because I didn't have a storage and everything

349
00:16:54,160 --> 00:16:54,960
was in my apartment.

350
00:16:54,960 --> 00:16:57,760
But those are the kind of things you really don't think about.

351
00:16:59,600 --> 00:17:03,120
I used to have people to come into CVS all the time and be like, hey, do you have boxes?

352
00:17:03,120 --> 00:17:04,560
I'm like, how many you need?

353
00:17:04,560 --> 00:17:05,920
I got a whole back room full.

354
00:17:05,920 --> 00:17:06,880
I'll pull out every one I got.

355
00:17:06,880 --> 00:17:09,440
Or like banana boxes at Sam's Club.

356
00:17:09,440 --> 00:17:10,400
Have you got a Sam's Club?

357
00:17:10,400 --> 00:17:11,600
They got plenty of boxes.

358
00:17:11,600 --> 00:17:14,560
They have their own little box, little thing up at the front.

359
00:17:14,560 --> 00:17:17,040
They don't mind you taking that crap, honestly.

360
00:17:17,040 --> 00:17:17,540
Yeah.

361
00:17:17,540 --> 00:17:19,920
And it's not like you're dumpster diving.

362
00:17:19,920 --> 00:17:26,080
Because some people, it's kind of off putting to jump in a dumpster.

363
00:17:26,080 --> 00:17:30,960
I used to dumpster dive Goodwills way back before when I first started eBay.

364
00:17:30,960 --> 00:17:33,120
Goodwill used to throw out all this stuff in the dumpster.

365
00:17:33,120 --> 00:17:33,440
Guess what?

366
00:17:33,440 --> 00:17:38,000
Me and my buddy sit out back in the dumpster, sit out there, music playing in the car,

367
00:17:38,000 --> 00:17:39,120
waiting for them to come.

368
00:17:39,920 --> 00:17:41,360
But a lot of people get off put by that.

369
00:17:41,360 --> 00:17:45,200
But if you just walk in and ask for boxes, you could just be like, hey, I'm moving.

370
00:17:45,200 --> 00:17:46,080
You got any boxes?

371
00:17:46,080 --> 00:17:47,200
I'll take any size box.

372
00:17:47,200 --> 00:17:48,480
You got small, big.

373
00:17:48,480 --> 00:17:52,800
And I even used to use boxes from CVS for those Guitar Hero guitars.

374
00:17:52,800 --> 00:17:54,400
They're so weird shaped.

375
00:17:54,400 --> 00:17:57,360
And I would just, whenever I get a long box that wasn't that thick,

376
00:17:57,360 --> 00:17:59,680
I would just say, all right, my Guitar Hero box.

377
00:17:59,680 --> 00:18:01,680
Because you used to find those things everywhere.

378
00:18:01,680 --> 00:18:03,280
You can't find them no more in thrift stores.

379
00:18:03,280 --> 00:18:05,440
But I used to sell those things all the time.

380
00:18:05,440 --> 00:18:08,640
So even back then, I was like, hey, this is a nice guitar.

381
00:18:08,640 --> 00:18:09,520
It comes off the truck.

382
00:18:09,520 --> 00:18:12,400
I'm like, oh, yeah, that's a Guitar Hero box for me right there.

383
00:18:12,400 --> 00:18:15,600
But you got to save money any way you can when you first start.

384
00:18:15,600 --> 00:18:19,760
And even to this day, I feel like I'm still super cheap with everything.

385
00:18:21,120 --> 00:18:21,520
Yeah.

386
00:18:21,520 --> 00:18:25,760
And then here's where I was, where I cut myself off at the beginning of the call,

387
00:18:25,760 --> 00:18:32,800
when we first started going into it here, is spending some money and expecting the return

388
00:18:32,800 --> 00:18:33,840
to come back slowly.

389
00:18:33,840 --> 00:18:36,080
A lot of people don't prepare for that, especially immediate.

390
00:18:36,080 --> 00:18:37,680
It's going to be a slow return.

391
00:18:37,680 --> 00:18:41,280
Yeah, we always talk about 3Xing, 10Xing, 20Xing your money.

392
00:18:41,280 --> 00:18:41,760
Yeah.

393
00:18:41,760 --> 00:18:43,440
But it's not an overnight thing.

394
00:18:43,440 --> 00:18:45,840
I'm sorry to inform you of this, but it's not.

395
00:18:47,360 --> 00:18:48,640
It's going to come in.

396
00:18:48,640 --> 00:18:51,360
In my case, it comes in over the course of a year, usually.

397
00:18:52,960 --> 00:18:57,520
Because with me, I got to throw enough up there to get enough hooks in the water or eyeballs on it,

398
00:18:57,520 --> 00:19:01,920
right, on the eBay platform, where stuff's selling every day.

399
00:19:01,920 --> 00:19:03,280
Yeah, they're all long tail.

400
00:19:03,280 --> 00:19:07,440
But I have enough long tail where I sell stuff every day.

401
00:19:07,440 --> 00:19:11,760
And enough variety for people to take advantage of multi-quantity buys.

402
00:19:11,760 --> 00:19:13,520
That produces cash flow.

403
00:19:13,520 --> 00:19:17,360
I had planned for this very early on in my business to do that.

404
00:19:17,360 --> 00:19:22,800
Because I knew once I decided on the vintage route that my items are, in fact, long tail.

405
00:19:22,800 --> 00:19:23,680
They're collectibles.

406
00:19:23,680 --> 00:19:26,000
Not every day, somebody's going to want it.

407
00:19:26,000 --> 00:19:28,480
So that also affected how many I list as well.

408
00:19:29,760 --> 00:19:31,280
But it all leads back to cash flow.

409
00:19:31,280 --> 00:19:32,400
I want more cash flow.

410
00:19:32,400 --> 00:19:38,160
Well, I have to do x, y, and z to produce the cash flow to come in.

411
00:19:38,160 --> 00:19:40,400
And like my employee, she's an investment right now.

412
00:19:41,440 --> 00:19:44,480
She definitely lists more than she costs per hour.

413
00:19:44,480 --> 00:19:53,360
But it takes time for me to recoup back the monthly cost of her wage, essentially.

414
00:19:53,360 --> 00:19:54,720
So I got to prepare for that.

415
00:19:54,720 --> 00:19:56,240
OK, she costs this.

416
00:19:56,240 --> 00:20:02,080
I need to at least list this much of inventory to have the potential to pay off her thing.

417
00:20:02,080 --> 00:20:06,240
But to extrapolate even further, let's times that by two or three here

418
00:20:06,240 --> 00:20:09,440
to actually make it feasible versus the breakeven.

419
00:20:09,440 --> 00:20:13,520
To me, you got to go above and beyond to account for all variables you can't see.

420
00:20:15,920 --> 00:20:19,760
So yeah, there's that tidbit for you, people.

421
00:20:19,760 --> 00:20:22,880
I do think like my mindset now, right?

422
00:20:22,880 --> 00:20:26,400
I don't know, just because I've been doing this for so long, like when it comes to cash flow.

423
00:20:26,400 --> 00:20:31,840
And for example, I just had my car inspected, needed new exhaust, everything.

424
00:20:31,840 --> 00:20:32,400
$1,100.

425
00:20:33,040 --> 00:20:36,240
So I do think about it like $1,100, right?

426
00:20:36,240 --> 00:20:38,400
My average sales price is around $20.

427
00:20:38,400 --> 00:20:41,200
So I run the numbers in my head real quick.

428
00:20:41,200 --> 00:20:46,480
And I'm like, OK, how many items do I have to sell to offset this?

429
00:20:46,480 --> 00:20:49,440
And I don't know if it's just from being in the business for so long.

430
00:20:49,440 --> 00:20:51,760
But you need the cash flow, right?

431
00:20:51,760 --> 00:20:53,520
Because that's my bookmobile.

432
00:20:53,520 --> 00:20:56,720
I drive it everywhere for all my thrifting.

433
00:20:56,720 --> 00:20:58,400
It's the only car we have, me and Deb.

434
00:20:58,400 --> 00:21:06,240
So you have to have that cash flow, because what happens if I don't have the $1,100 to

435
00:21:06,240 --> 00:21:07,280
fix the car, right?

436
00:21:07,280 --> 00:21:09,680
What happens if you have an unexpected emergency?

437
00:21:10,240 --> 00:21:13,600
You need to be able to say, OK, well, I'm making enough money.

438
00:21:13,600 --> 00:21:14,720
And it's hard when you start.

439
00:21:14,720 --> 00:21:19,760
But if you're just starting this, you should have kind of an emergency fund out.

440
00:21:19,760 --> 00:21:23,280
You shouldn't be spending emergency fund money to start your reselling business.

441
00:21:23,280 --> 00:21:24,240
So you should have a separate.

442
00:21:24,240 --> 00:21:26,560
But for things that come up in the business, right?

443
00:21:26,560 --> 00:21:32,640
Maybe something happens where you have to, you know, I mean, who knows?

444
00:21:32,640 --> 00:21:36,640
What could go wrong in your business right now that you would have to cash flow?

445
00:21:36,640 --> 00:21:38,480
Like your car, your truck, your truck goes?

446
00:21:38,480 --> 00:21:39,520
Yeah, the truck goes down.

447
00:21:39,520 --> 00:21:40,400
That affects my business.

448
00:21:40,400 --> 00:21:41,920
I mean, I have enough inventory for a little while.

449
00:21:41,920 --> 00:21:45,040
But let's say I can't repair the truck for that little while.

450
00:21:45,040 --> 00:21:46,320
What do I do, right?

451
00:21:46,320 --> 00:21:48,320
Hey, employee, we got to go somewhere.

452
00:21:48,320 --> 00:21:49,840
Take your computer.

453
00:21:49,840 --> 00:21:51,120
Your computer goes down, right?

454
00:21:51,120 --> 00:21:51,680
It goes out.

455
00:21:51,680 --> 00:21:52,800
That's going to set me back.

456
00:21:52,800 --> 00:21:56,000
But that's why, like I mentioned, I put a lot of money into computers.

457
00:21:56,000 --> 00:21:57,200
So my goes down.

458
00:21:57,200 --> 00:21:58,640
Well, I got two more I could use.

459
00:21:58,640 --> 00:22:02,400
I got four if I go home and bring back the laptop.

460
00:22:02,400 --> 00:22:04,320
So I'm still in business.

461
00:22:04,320 --> 00:22:07,680
But I invested in those things in case something did go wrong,

462
00:22:07,680 --> 00:22:10,240
because you can't plan for when the computer goes down.

463
00:22:10,240 --> 00:22:12,160
Oh, July 4th, the computer is going to go down.

464
00:22:12,160 --> 00:22:13,280
I better get one before then.

465
00:22:13,280 --> 00:22:14,400
You can't plan for that.

466
00:22:14,400 --> 00:22:17,680
So basically, you're saying like you need to have like a slush fund for like

467
00:22:18,400 --> 00:22:21,120
unexpected business expenses.

468
00:22:21,120 --> 00:22:23,600
I mean, I mean, we always we kind of hit on it before.

469
00:22:23,600 --> 00:22:26,880
Like you should have maybe five hundred dollars set aside

470
00:22:26,880 --> 00:22:30,880
if you're newer to this for maybe an opportunity to buy.

471
00:22:30,880 --> 00:22:32,640
Maybe an opportunity pops up today.

472
00:22:32,640 --> 00:22:36,240
You know, somebody calls you, hey, I got ten thousand sneakers,

473
00:22:36,800 --> 00:22:38,480
five hundred bucks, and you ain't got it.

474
00:22:38,480 --> 00:22:41,360
But we kind of talk about it like maybe you need to have

475
00:22:41,360 --> 00:22:45,040
in addition to like an opportunity envelope, we'll say.

476
00:22:45,040 --> 00:22:48,080
We're doing the envelope system again, the opportunity envelope.

477
00:22:48,080 --> 00:22:52,720
And then you got basically a business expense, unexpected expense envelope.

478
00:22:52,720 --> 00:22:56,400
And it's almost like you can have a set of envelopes for your personal life,

479
00:22:56,400 --> 00:22:58,000
like your personal finances.

480
00:22:58,000 --> 00:23:01,040
And then you could have one strictly for your reselling this.

481
00:23:01,040 --> 00:23:04,000
And I think I think that would be good for a lot of people, like, OK,

482
00:23:04,000 --> 00:23:05,200
here's what I paid.

483
00:23:05,200 --> 00:23:08,560
Here's the cash, the extra cash I have that's going into the opportunity.

484
00:23:08,560 --> 00:23:11,920
And then here's the one for an unexpected expense whenever that may happen.

485
00:23:12,800 --> 00:23:15,520
Right. I mean, I'm going to I'm going to speak on this for a moment.

486
00:23:16,960 --> 00:23:21,600
There was a deal earlier on this year that came up where I had already bought.

487
00:23:21,600 --> 00:23:24,960
And I already I already spent my slush fund, as you mentioned.

488
00:23:24,960 --> 00:23:26,880
And I was like, I really want it.

489
00:23:28,400 --> 00:23:31,440
That that that scenario, you got two options.

490
00:23:31,440 --> 00:23:34,800
You put it on your credit card or you could take a pass.

491
00:23:34,800 --> 00:23:38,560
I decided to take a pass, even though I knew it would pay for itself.

492
00:23:38,560 --> 00:23:42,240
And what I would have spent on the credit card, I didn't want to accumulate debt on it.

493
00:23:43,120 --> 00:23:46,640
Now, I have done that before, where I have put a deal on the credit card

494
00:23:47,200 --> 00:23:50,400
or got cash from the credit card in order to do it.

495
00:23:50,400 --> 00:23:52,560
But that was earlier out of my business and I did.

496
00:23:53,200 --> 00:23:56,640
And it made sense to me at the time and it was worth it and it paid for itself.

497
00:23:57,200 --> 00:23:59,600
But not every deal would pan out like that.

498
00:23:59,600 --> 00:24:03,520
It's not as worth as much as you thought it was or you thought one something,

499
00:24:03,520 --> 00:24:08,240
but the market flipped to something else in the in the middle of you selling these things.

500
00:24:08,240 --> 00:24:09,120
You just never know.

501
00:24:09,840 --> 00:24:13,280
So the less that's that's risk management right there,

502
00:24:13,280 --> 00:24:15,280
which does have to do with cash flow.

503
00:24:15,280 --> 00:24:21,680
You can you can leverage those things on like credit and stuff, but I would not advise it

504
00:24:21,680 --> 00:24:24,080
because you can get in trouble real, real quick.

505
00:24:24,880 --> 00:24:27,200
It just takes a couple of those for you're out of business.

506
00:24:27,200 --> 00:24:33,440
Honestly, I've seen I've seen a few horror stories on social media about people that started,

507
00:24:33,440 --> 00:24:37,200
you know, online arbitrage and they leverage your credit cards.

508
00:24:37,760 --> 00:24:39,280
Nothing against people use credit cards.

509
00:24:40,800 --> 00:24:41,920
I'm sure that's your jam.

510
00:24:41,920 --> 00:24:42,800
You know, 100 percent.

511
00:24:42,800 --> 00:24:43,840
I got nothing against it.

512
00:24:43,840 --> 00:24:46,880
There you can be very successful if you know how to play the game.

513
00:24:46,880 --> 00:24:52,080
But unfortunately, the average person who never really had a credit card before

514
00:24:52,640 --> 00:24:55,760
can't start doing what some of these people are doing in the field.

515
00:24:55,760 --> 00:25:00,880
And I've seen horror stories where people like I had to ask my family for tens of thousands

516
00:25:00,880 --> 00:25:05,680
of dollars because, you know, you spend that money today, you got to pay that credit card

517
00:25:05,680 --> 00:25:09,120
balance off at the end of the month or you get hit with the interest and people don't

518
00:25:09,120 --> 00:25:10,240
really kind of look past that.

519
00:25:10,240 --> 00:25:16,400
So I think kind of like the overall takeaway here from cash flow for me is like you're

520
00:25:16,400 --> 00:25:21,520
always going to want to even if it means breaking even or making a buck, you're every

521
00:25:21,520 --> 00:25:26,640
single as every single second passes, somebody sends you an offer and you know, you can get

522
00:25:26,640 --> 00:25:28,720
your money back out of it, maybe a little bit more.

523
00:25:28,720 --> 00:25:33,040
You're always going to be better off taking it and redeploying that money again.

524
00:25:33,760 --> 00:25:34,480
Absolutely.

525
00:25:34,480 --> 00:25:40,000
So it's like, stop trying to hold out for the full price if you have a chance to take

526
00:25:40,720 --> 00:25:41,680
a little bit less.

527
00:25:41,680 --> 00:25:43,600
I mean, we're paying nothing for these items.

528
00:25:43,600 --> 00:25:44,720
A lot of us that are flipping.

529
00:25:44,720 --> 00:25:50,080
I mean, we're not flipping, you know, used clothing, books, you know, sneakers to make

530
00:25:50,080 --> 00:25:51,280
a dollar per item, right?

531
00:25:51,280 --> 00:25:56,720
We always have crazy room for basically, you know, offers.

532
00:25:56,720 --> 00:25:57,840
That's basically what we're doing.

533
00:25:57,840 --> 00:26:01,920
We're just pricing something at what the market what we think the market price is, but in

534
00:26:01,920 --> 00:26:06,640
actuality, if we get an offer and it's under, you know, the market going great, we probably

535
00:26:06,640 --> 00:26:11,440
should still take that 99% of the time unless it's something we know is going to sell for

536
00:26:11,440 --> 00:26:12,160
that full price.

537
00:26:12,160 --> 00:26:18,640
But don't get caught up with hanging on like, I know this phone is worth $300 and I'm not

538
00:26:18,640 --> 00:26:19,840
taking a penny less.

539
00:26:19,840 --> 00:26:23,200
It's funny because I'll just a little reference here.

540
00:26:23,200 --> 00:26:25,520
I was trying to buy something on eBay the other day.

541
00:26:25,520 --> 00:26:28,720
They had it listed at $22 best offer.

542
00:26:29,440 --> 00:26:29,840
All right.

543
00:26:29,840 --> 00:26:32,240
Well, I'm in there, right?

544
00:26:32,240 --> 00:26:37,040
Best offer, 10 bucks automatically decline, $12 automatically decline.

545
00:26:37,040 --> 00:26:40,880
I got all the way up to $16 and it's still automatically declined.

546
00:26:40,880 --> 00:26:44,720
Like, why do we have like, what's the point of having it on?

547
00:26:44,720 --> 00:26:45,040
Right?

548
00:26:45,040 --> 00:26:47,760
Like that person probably just missed out on the sale.

549
00:26:47,760 --> 00:26:50,800
They're probably never going to get because there was multiple people on the listing.

550
00:26:50,800 --> 00:26:52,800
They were just the only one with best offer.

551
00:26:52,800 --> 00:26:55,440
It's not like there was a crazy sell through on this item either.

552
00:26:55,440 --> 00:26:59,440
So like, that's an opportunity where they could have sold it for $12.

553
00:26:59,440 --> 00:27:03,760
They could have took that $16 after fees, maybe, you know, 12 because they did charge

554
00:27:03,760 --> 00:27:05,520
for shipping and they would have made money on the ship.

555
00:27:05,520 --> 00:27:08,160
And so they probably would have made like, I never have that crap on.

556
00:27:08,160 --> 00:27:10,720
I let them send me dollar offers if they want to.

557
00:27:10,720 --> 00:27:12,320
I can always counter.

558
00:27:12,320 --> 00:27:15,360
Yeah, I have to take their dollar.

559
00:27:15,360 --> 00:27:16,160
I was blown away.

560
00:27:16,160 --> 00:27:19,840
I was like, this is your, you know, intelligent because you only get five offers, right?

561
00:27:19,840 --> 00:27:21,760
They're like, Mike, this is your last offer.

562
00:27:21,760 --> 00:27:26,800
If you don't, and I'm like, do I want to hit enter and it proved automatically decline.

563
00:27:26,800 --> 00:27:32,320
So like, just think like, take that 16 bucks, spend it on something better, right?

564
00:27:32,320 --> 00:27:32,960
Turn that six.

565
00:27:32,960 --> 00:27:35,120
You go out to the thrift store, you spend 16 bucks.

566
00:27:35,120 --> 00:27:39,760
You're going to leave with a lot of stuff that you're going to sell for a lot more than $16.

567
00:27:39,760 --> 00:27:42,320
I kind of want that mindset when it comes to cash flow.

568
00:27:42,320 --> 00:27:45,120
And just know you have to have money come in.

569
00:27:45,120 --> 00:27:47,920
You can't keep spending because it don't work, right?

570
00:27:47,920 --> 00:27:50,000
You can't sooner or later, you're going to run out of money.

571
00:27:50,000 --> 00:27:51,920
I don't care how many credit cards you got.

572
00:27:51,920 --> 00:27:56,240
I don't care how many distant cousins, family members you got that you're calling up asking

573
00:27:56,240 --> 00:28:00,320
for money because you know, you've seen selling on Amazon is going to make you a millionaire.

574
00:28:00,320 --> 00:28:02,480
Sooner or later, the well is going to run dry.

575
00:28:02,480 --> 00:28:07,520
And then you're going to be in a situation where if you get to that point, now all of a sudden,

576
00:28:07,520 --> 00:28:08,960
you're super leveraged, right?

577
00:28:08,960 --> 00:28:14,160
So now you can't even think twice about not taking an offer because you have to take everything

578
00:28:14,160 --> 00:28:18,560
because the bills have piled up to a point where you're just drowning.

579
00:28:18,560 --> 00:28:21,520
And it goes to say, get rid of your death piles.

580
00:28:21,520 --> 00:28:24,560
Honestly, if you're an eBay seller, there's no reason you should have one.

581
00:28:24,560 --> 00:28:26,160
It's fine to have a Q pile, right?

582
00:28:26,160 --> 00:28:27,920
That's like kind of the difference of the two.

583
00:28:28,960 --> 00:28:30,400
Johnny B's got all of his stuff.

584
00:28:30,400 --> 00:28:32,080
It's all kind of like a conveyor belt.

585
00:28:32,080 --> 00:28:33,920
It moves one foot every day.

586
00:28:34,560 --> 00:28:36,000
I'm the Ford factory of books.

587
00:28:37,600 --> 00:28:38,960
It's not a death pile.

588
00:28:38,960 --> 00:28:42,400
He doesn't go out, spend all this money on all this random stuff.

589
00:28:42,400 --> 00:28:44,320
And then it just sits there and never gets listed.

590
00:28:44,320 --> 00:28:47,680
And then, hey, look at Johnny B. He's out at the thrift store again the next day.

591
00:28:47,680 --> 00:28:49,760
Like, let me pile more of my money in there.

592
00:28:49,760 --> 00:28:50,800
And that's really what you're doing.

593
00:28:50,800 --> 00:28:56,240
You're just kind of choking your own business to a point where it's not going to work.

594
00:28:56,240 --> 00:28:57,120
You're going to fail.

595
00:28:57,120 --> 00:28:59,120
Your reselling business is going to go away.

596
00:28:59,120 --> 00:29:00,400
I think we're seeing a lot of that, right?

597
00:29:00,400 --> 00:29:04,800
A lot of people have a lot of inventory either not listed or not priced correctly.

598
00:29:04,800 --> 00:29:10,240
They're not taking offers just because they think that they need to get what they

599
00:29:10,240 --> 00:29:13,920
through the $300 for that item that it sold for one time.

600
00:29:13,920 --> 00:29:15,360
They think they need to get that.

601
00:29:15,360 --> 00:29:20,240
And if anything else, even though they paid a dollar for it, it's a loss in their mind.

602
00:29:20,240 --> 00:29:24,000
And when I first started eBay, I was greedy, right?

603
00:29:24,000 --> 00:29:26,800
I was like, oh, yeah, offer, counteroffer.

604
00:29:26,800 --> 00:29:28,080
And then Deb started yelling at me.

605
00:29:28,080 --> 00:29:29,280
Deb was like, just take the offer.

606
00:29:29,280 --> 00:29:33,040
I'm like, so, well, I mean, I guess if you don't have Deb in your ear,

607
00:29:33,040 --> 00:29:34,800
I'm here telling you I'll be your Deb.

608
00:29:34,800 --> 00:29:38,320
If you get an offer and it's reasonable and you're going to make a little bit of money

609
00:29:38,320 --> 00:29:41,520
on an item that's been listed, take the offer every single time.

610
00:29:41,520 --> 00:29:43,120
And that's how I am nowadays.

611
00:29:43,120 --> 00:29:45,360
You know, I'm just going to take the offer every single time.

612
00:29:45,360 --> 00:29:47,360
Give me your final thoughts on your own cash flow.

613
00:29:47,360 --> 00:29:48,960
My final thoughts on cash flow.

614
00:29:49,840 --> 00:29:50,640
I agree with Mike.

615
00:29:50,640 --> 00:29:58,800
Take the money and run and look for cheaper ways to buy things, to run operations in your business,

616
00:29:58,800 --> 00:30:03,600
a.k.a. buy used supplies, used everything, used electronics, used computers,

617
00:30:03,600 --> 00:30:10,400
used wheelie bin carts, used tables, used tubs, used everything.

618
00:30:10,400 --> 00:30:15,040
Buy used because you can always buy another one if it breaks for cheaper.

619
00:30:15,040 --> 00:30:17,680
Yeah, I think that's going to cover everything for cash flow.

620
00:30:17,680 --> 00:30:20,400
Remember, it's the most important part of your business.

621
00:30:20,400 --> 00:30:25,440
Take the dollars today and you can go spend those dollars today better than you did last week,

622
00:30:25,440 --> 00:30:29,120
yesterday, because your knowledge is always, you know, it's always growing.

623
00:30:29,120 --> 00:30:33,120
You're always gaining more knowledge, more brands, more publishers.

624
00:30:33,120 --> 00:30:36,000
And just realize, right, if you ain't got the money to spend,

625
00:30:36,000 --> 00:30:37,600
then you got to start clearing things out.

626
00:30:37,600 --> 00:30:42,000
List everything, no death piles, you know, reprice everything down.

627
00:30:42,000 --> 00:30:45,440
If you don't have the money, there's so many things we can do to squeeze,

628
00:30:45,440 --> 00:30:47,600
you know, a quick hundred bucks out of our businesses.

629
00:30:47,600 --> 00:30:50,960
So don't get caught up trying to get the highest price for every single item.

630
00:30:50,960 --> 00:30:53,440
And we will talk to you all in next week's episode.

631
00:30:53,440 --> 00:30:57,200
Thanks for listening to another episode of the resellers mindset podcast.

632
00:30:57,200 --> 00:31:01,680
Today's full episode and all previous episodes are available to all YouTube members

633
00:31:01,680 --> 00:31:04,480
along with the weekly zoom call and private discord.

634
00:31:04,480 --> 00:31:10,160
Head on over to youtube.com backslash to use book guy and consider joining for as little as two weeks.

635
00:31:10,160 --> 00:31:13,200
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