Everyday Abritrage Opportunities?

[user43423]

An idea that has interested me since I was very young are "everyday arbitrage" opportunities. Even before I knew that FI was possible or had heard of MMM, I was always a fairly prolific saver, with an eye towards opportunity. In middle school and high school, I would buy things in one area and "flip" them in another (e.g. buying something at a garage sale that I knew I could flip on eBay for more). So I'd be interested to know what opportunities the MMM community has come across and how they participate.

For example....

When I was growing up was when I played online poker with my friends and was the only one with a bank account I could link to the sites. Because my friends all really wanted to play, they would give me $20 in cash for $15 in online poker money, and I'd pocket the difference.

Another example was when I would buy new iPhones when they first came out, and resell them on Craigslist to tourists in NYC who came from countries where the iPhone wasn't yet released. I was able to pocket a quick $200 each time.

Would love to hear what little niches others have found, and think it would be an interesting topic to explore. I also may make a blog post about it in the future! http://www.valueiswhatyouget.com

[swick]

ohh one of my favorite topics! My mom opened an educational toy/candy store when I was 7 or so, so I grew up reselling stuff I could get at wholesale to the kids at school, or trading/bartering for things I wanted. It use to astound me what people were willing to pay for, or even how much they offered.

We also lived right by the boarder which was handy. We made a killing on the Beanie Baby craze.

When we lived in Northern BC, basically everything  we had access to down south retained value or went for more. We'd go south to visit family every year and pack up the car. I would buy huge amount of spices/teas in bulk and repackage them into smaller bags and sell them. Always made more then the total cost of the spices with a tidy profit. Anything organic was a guaranteed sale for a profit.

Once I bought a lot of gently used clothing, I think there was something silly like 6 garbage bags full of clothing for 60.00. Took out what I wanted for myself and a few of my friends (I ended up with a full years worth of clothing as did a friend of mine) and resold the rest in smaller lots divided by size and clothing type and made 120.00.

Looking forward to hearing other peoples ideas, it is a fun topic :)

[Retired To Win]

I know that from time to time I "flip" something I have bought at a garage sale and net a little profit.  But where I do better is to sell things I end up getting for free.  Like furniture that was left at the house we bought a year ago.  Or three large boxes full of books that was offered to me during someone's spring cleaning.

[arebelspy]

Craigslist is a bonanza for this. Electronics, cars, whatever you're interested in.  I make hundreds every time I upgrade my electronics. (Or I did, when I cared to do so.)

Also I expect several will mention used books w/ scanner and reselling.

[user43423]

Another thought I've quickly researched are credit card + merchant opportunities, but I'm not sure if they actually pay off. For example, if Chase gives me 5 Ultimate Rewards Points for every dollar spent at a particular merchant, would buying a $100 gift card and selling it on eBay or CL for $90 make it worthwhile? Since Ultimate Rewards points are worth $.021 each, would it pay in certain scenarios?

I'd have to crunch some numbers and determine if it's worthwhile, but figure it would be worth a look. Joshua Kennon's had a post about something similar that's worth a read, which has got me thinking. http://www.joshuakennon.com/american-express-reward-points-are-like-crack-for-capitalists/

[SaintM]

Another thought I've quickly researched are credit card + merchant opportunities, but I'm not sure if they actually pay off. For example, if Chase gives me 5 Ultimate Rewards Points for every dollar spent at a particular merchant, would buying a $100 gift card and selling it on eBay or CL for $90 make it worthwhile? Since Ultimate Rewards points are worth $.021 each, would it pay in certain scenarios?

If I have my math right, you would take a $10 loss (and that is before eBay selling fees) to earn $10.50 in Ultimate Rewards Points.  You need to come up with a more substantial idea than that.

[anastrophe]

I used to flip furniture on Craigslist and did very well, a lot of things only have a loose screw or need a bit of polish. But eventually it was more work than it was worth. Fun though.

[neil]

http://www.xkcd.com/1499/ ?

[WYOGO]

This can work well as long as you have time to do it and enjoy it.
This can work well as long as it does not result in lifestyle inflation through the creation of desires you never had in the first place.

[DollarBill]

I use to make a killing in middle school selling soda, jolly ranchers and nerds :)

[anastrophe]

I bought a designer item at the low-end thrift store and sold it to the high-end consignment store. Of course, consignment is never really a good deal, but I've 'made' some money that way.

[mathlete]

I was doing some Christmas shopping for an angel tree last season and I saw Walmart running an ad online for $20 off a toy that one of the angel kids wanted. So I went to the store but the item was regularly priced, so I bought it online from my phone and then picked it up at the in-store pickup station.

It occurred to me that someone could make $20 a piece by buying these up on the Walmart website and returning them in store for the full price since Walmart takes returns without receipts.

I didn't do this because I think it is really scummy, but it is still interesting.

[myhotrs]

Walmart will only take a few per year without a receipt, they will ask for ID and will eventually stop allowing it. Also, I think there is a $50 limit per no receipt return. Also, definitely scummy.

Around the holidays, lots of stuff is very cheap and can be resold for more.

[AH013]

In high school we had a student store that sold candy & soda, but only during 7th & 8th (last) period of the day, so the sugar wouldn't kick in until school was over and the school wouldn't have sugar crazed kids bouncing off the walls.

School rules were that you could not sell stuff on school grounds, but it was permissible to "buy candy or soda from the school store for a friend and have them repay you for it".  Conveniently absent was any verbiage on "service fees" for your efforts or stipulations on WHEN you give it to your "friend" :)

Buy popular candy bars/bags (Skittles, Swedish fish, Sour Patch Kids and Starburst were the easy sells and guaranteed to keep without melting) during 7th-8th period.  The next day sell them at a 33% markup around 2nd-5th period when people really wanted them and couldn't wait another few periods before the store would start selling them.  I'd have to race to my locker during breaks between classes to have enough time to service all the business before next period started.  Making money hand over fist for a kid.  Oh the profit.  And the amount of dates from hooking girls up with chocolate when they really needed it.  Being repaid for sugar with "sugar" was like a teenager's dream :)

My only regret is that I didn't buck the rules regarding selling my own stuff.  Candy bars at the school store ran $0.75 a piece.  At the discount grocer in town it would be $0.25 in bulk.  The difference between a 33% daily return on my money and a 300% return on my money!

[MillenialMustache]

I was doing some Christmas shopping for an angel tree last season and I saw Walmart running an ad online for $20 off a toy that one of the angel kids wanted. So I went to the store but the item was regularly priced, so I bought it online from my phone and then picked it up at the in-store pickup station.

It occurred to me that someone could make $20 a piece by buying these up on the Walmart website and returning them in store for the full price since Walmart takes returns without receipts.

I didn't do this because I think it is really scummy, but it is still interesting.

You could only do it 5 times, as Wal-Mart only allows 5 returns per year per driver's license without a receipt.