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doing trading of used computer stuffs ... what do you think?

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molchew
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doing trading of used computer stuffs ... what do you think?

Postby molchew » Wed, 29 Jun 2005 10:37 pm

any comments? anyone interested?

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Strong Eagle
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Postby Strong Eagle » Thu, 30 Jun 2005 8:28 am

It will be a very low margin business. Most people think their used stuff is worth more than it actually is, most buyers will think it should be less because its used. You need about a 1/3 gross margin at least in order to make a go of it. You buy a used computer for $75 and sell it for $100. Profit = $25, Margin = 25/75 = 1/3. Less than this and you can't pay your bills or your salary. [Added 30 Jun, 10:05] You also need to consider the time value of money that you will need to invest in inventory. If it is borrowed, you must increase you margins by the amount of interest you pay on inventory financing. If it is your money, you need to consider the opportunity cost. If you can get 5 percent investing in a mutual fund, why put the money into a business that earns 6 or 7 percent net when you have to work your ass off to get that small percentage.

You could consider buying up older equipment in lots for sale in lots to less developed areas.
Last edited by Strong Eagle on Thu, 30 Jun 2005 10:06 am, edited 1 time in total.

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Postby Guest » Thu, 30 Jun 2005 9:46 am

Agree, have been doing that for some time already, profit is there but very minimal, i have a lot of source from oversea, anyone got ways to bring into non-developed countries???
Anyway, thanks Strong Eagle

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Strong Eagle
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Postby Strong Eagle » Thu, 30 Jun 2005 10:03 am

Anonymous wrote:Agree, have been doing that for some time already, profit is there but very minimal, i have a lot of source from oversea, anyone got ways to bring into non-developed countries???
Anyway, thanks Strong Eagle


I know a guy in the United States that has been buying large lots of computers when a company upgrades. Sorts through the stuff, creates a bunch of working machines, sends good sized lots to South America to governments, schools, local companies willing to use older, slower computers.

I think such sales in APac would be a niche market. You've got the big players like Dell, HP, and IBM...er... Lenovo trying to peddle into the higher reaches of government and industry. You'd probably need to seek out local governments, smaller companies... and figure out how to provide needed access infrastructure like internet.

molchew
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Postby molchew » Thu, 30 Jun 2005 10:03 pm

Dun quite understand, you mean do assets recovery for singapore companies??


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