Where to buy broken game console at good price?

[david90]

Recently i've been buying broken XBOX 360 game system to fix and resell. I bought one system on ebay, fixed it and now I think I can only break even at best due to the shipping cost and bid competition from the whole US.

I bought another system at a discount outlet and I think I will be able to make about $20 profit off of it. The profit margin on this is 20/96 = 20% not including other factors that will reduce it.

My question is, where can I go to buy broken game console at a cheap price? I don't think I can make good and worthwhile profit if I buy them from ebay or other "middle man" source. Where does discount outlet store get their stuff?

[Shadesz]

Let me get this straight... you are selling it for $20 more than the cost of the broken one plus parts? How much time did you spend on this one console?

Time includes looking for and buying broken console, diagnosing problem and acquiring parts, actual time spent fixing the console, time spent advertising and setting up advertising the console, time spent selling (did you get multiple calls on it?), and time spent collecting/depositing receivables.

Not to mention overhead like rent, taxes, accountant, business license, insurance, etc...

20 bucks to do all the work above? Unless I read your post wrong or you are superman you definitely need to find a better market. Push over $100/hr if you want to actually build a business and/or not be broke in the process. I'm crudely guessing you spent 3 hours on it which means you made 7 bucks an hour BEFORE paying normal business expenses... means you made lower than minimum wage.

Sure I assumed a lot, but you might consider looking for something with a much better profit margin. 2% profit (not 20) isn't going to keep your head above water.

Just my .02

[david90]

Let me get this straight... you are selling it for $20 more than the cost of the broken one plus parts? How much time did you spend on this one console?

Time includes looking for and buying broken console, diagnosing problem and acquiring parts, actual time spent fixing the console, time spent advertising and setting up advertising the console, time spent selling (did you get multiple calls on it?), and time spent collecting/depositing receivables.

20 bucks to do all the work above? Unless I read your post wrong or you are superman you definitely need to find a better market. Push over $100/hr if you want to actually build a business and/or not be broke in the process. I'm crudely guessing you made 7 bucks and hour net on it?

Just my .02

You're right that what i'm currently doing it is not worth it. The thing that takes up the most time is looking for a good priced broken console. It's not worthwhile to do this if I just buy one from here and there. This is why I'm asking for advice on where I can buy a lot consoles at cheap price so I wouldn't have to drive all over. This is the weak point.

For parts, probably $3 but I could buy that in bulk and get it down to cents.

Diagnose, I'd say 10 min and fixing it takes about 30 min.

To sell it, I just post on craigslist. I estimate that the total time to sell one console from the time the person call me to set an appointment to see it to the cash in my hand is about 20 min.

This business is not a serious one (not even registered, working at home). I recently got laid off and I'm just looking to make money using what I know which is electronic. I'm still a young guy and it's good practice selling, pricing, and analyzing different business aspects.

I see a a couple of video game brick and motar stores that fix and sell game console like me. I bet they have a good source where they can get cheap broken consoles.

What business are you in that makes 100/hr (not saying that there aren't any) ? I assume to make that much you would need to employees so that you can leverage their labor and time.

[Shadesz]

You're right that what i'm currently doing it is not worth it. The thing that takes up the most time is looking for a good priced broken console. It's not worthwhile to do this if I just buy one from here and there. This is why I'm asking for advice on where I can buy a lot consoles at cheap price so I wouldn't have to drive all over. This is the weak point.

For parts, probably $3 but I could buy that in bulk and get it down to cents.

Diagnose, I'd say 10 min and fixing it takes about 30 min.

To sell it, I just post on craigslist. I estimate that the total time to sell one console from the time the person call me to set an appointment to see it to the cash in my hand is about 20 min.

This business is not a serious one (not even registered, working at home). I recently got laid off and I'm just looking to make money using what I know which is electronic. I'm still a young guy and it's good practice selling, pricing, and analyzing different business aspects.

I see a a couple of video game brick and motar stores that fix and sell game console like me. I bet they have a good source where they can get cheap broken consoles.

What business are you in that makes 100/hr (not saying that there aren't any) ? I assume to make that much you would need to employees so that you can leverage their labor and time.

Ahh I see. Do any local news companies have online classified adds? I suppose you could offer to buy broken consoles (for your price) on there.

The key for buying success would be consistency. If you design your add well, people would see it, take note... then, AFTER TIME, when their console broke, hopefully they would remember where they saw your add and find it again... so if you do not stay consistent with the add, you might not see the volume you need.

Anyways, online classifieds... "Will buy old/broken XBox 360's for $20 straight up"

Or you could play off the whole "go green" buzz. Find a way to tell everyone to recycle their old/broken consoles (you would have to accept more than just 360's). They call you and you pick them up (for free!). A sign on a busy street corner (or five) might do the trick. Just be sure to follow city ordinances to avoid tickets.

Or maybe find game stores, media stores, malls, etc. and sign a contract with them. You keep a small tub in the store somewhere (preferably by the exit) with a sign that says "Recycle your old/broken gaming consoles". People could leave them there and you run a pick up rout once a week. 10 plus locations... Now you are getting them for free... The stores motivation would be appearance. Now the store looks like they care about the planet. Just make sure your tubs/signs look professional when you present the idea to the store director. Maybe a graphic of the earth on the sign. Blue sign, green wording. Blue or green tub.

As far as $100/hr... any service that requires certification should gross you MINIMALLY $100/hour per certified employee. Plumber, pesticide applicator, concrete finisher, etc. Heck you can even push $80 an hour mowing lawns if you do it right... BUT you have to do it right = registered business + full insurance + proper certification + right equipment/tools, etc.

Anyways, I hope this helps. Sorry you got laid off, that always sucks.

Good luck!

David

PS,
Have you considered a home based, "electronic handyman" business? You could repair TV's, DVD players, Radios, consoles, etc... Charge $65 the first hour and $50/hour after that... plus parts. $50 minimum charge. Another $40 for pick up & delivery (large TV's repaired on site). It could be more/less money than that, call people that are already doing it and see what they make. Market to upper/middle class people who do not want to go buy another $3,000 HDTV just because theirs broke. Overhead would be minimal, probably $50/year for the business license. Throw a sign on your car/truck for $50. Also advertise with online classifieds (local), or even a free business website. $50/month for a business phone line will get you in the phone book & local internet phone listings for businesses.