The 40 40 Method is quite simple and can be used for most sourcing opportunities, not only liquidation. Find the retail price of the lot or item (or MSRP) and multiply this number by 40%, this is the low side of what you should expect to earn for this liquidation lot (of course item condition and how the item sells on ebay/amazon comes into play). Take this amount and multiply it again by 40%. This represents the amount you want to be into the product for. In some occasions it is ok to go a little higher than this (if the product is good) however this will at least set a guideline for you to work with. Leave your questions down below.
Actually, for some people it is not. Tried discussing it in an ebay reseller fb group and all I'm getting is hate for it due to people not understanding basic math.
Blows my mind what some people are paying for these lots. Makes me scratch my head sometimes. Bunch of new sellers or personel use. could be auction rage wars and more people than I realize get caught up into that sort of thing. Love the 40/40 formula its right on spot. Your a math genuis my friend. One of the kind I would set behind in college. Just joking but really never did like math until I actually needed it. Thanks a 100. Now all I need is your spread sheet.
Thank you so much. This is gold to me. I'm in the first steps of going down the resale path. I'm trying to learn the basics and these videos are an excellent guide!
Another great informative video John!!! You go into great detail on explaining on how things work!! In my opinion that is what separates you from other reseller UA-cam videos not in just what sold!!! You make a great teacher thank you for all the helpful information!
The 40/40 method sounds good, but I had to quit buying from liquidators because I had way too many defective items AND other buyers were bidding prices well into the 30% of MSRP. Good advice. People are paying way too much for this stuff.
Buying liquidation has its risks for sure. Customer returns allows you to obtain inventory under 20% retail and it is virtually impossible for resellers to achieve this when buying new with clearance items possibly being the exception.
@@Westcoast10 That's what I assume. But I also see players leaving the game. What I see is that Goodwills and SAs having nothing but junk. I'm having to redo my whole sourcing game from scratch.
@@ljwhitmire200 I feel you bro same! I was buying pallets of media from a liquidation discount store that ended up screwing me over. Long story short I was told by their manager that the owner wants to maximize profit so they’re starting to sell on eBay and amazon, and that’s due to the increase of competition with liquidation stores opening up. I’m just building up capital to use towards another business venture, I’ll still be reselling but it’ll be nice to have something unrelated to it.
@@Westcoast10 Me too. I'm trying to start another business, but Ebay keeps blowing up my store and I have to spend two weeks fixing it - quarterly updates. :P One thing is for sure, nothing stays the same. At this point I don't feel like the effort is worth the trouble anymore.
This is amazing! Thank you. I am starting looking into wholesale. I live in SouthCal and there are some liquidators around my area. I want to go and see what they have as well.
I would too. Do you know they still haven't shipped this order out to me almost a month later. They are telling me next week so I am hopeful to have a video on this for you soon.
Check out the video I did on this last week I believe. We have it all listed, waiting for the high volume replenishes to sell but all in all sells are good as expected. Waiting for two more pallets from bstock that we just ordered and will do another video on that one as well. Stay tuned.
If I gonna spend that much I'd rather look in to retail arbitrage as then if fault you can get a refund on any purchase look at clearance sales and clear the shelf in a shop and you got no risk with buying new good liquudation stock could be bad returns
there is something is missing here...or I missed something: 18112x0.4= 7244.8 return, your cost with shipping shouldn't be more than 7244.8x0.4=2897.92 dollars. You paid 3025 bidding +3300 shipping = 6325 dollars which is way off you 40% equation.
With really good lots and I’m talking the ones where you know you’re going to sell them for 60% off retail (sometimes higher) I will turn the formula into a 50/50 model. I use the 40/40 the way I do to give myself an idea of what I will make and what I will spend before messing with a lot. I think the one in the example was for an above average pallet.
Of course this is all predicated on the fact of how fast you can move this merchandize and not sit on it for long time. Which as things are selling now is problematic.
@@FlippinAintEasy I do so love your videos. You have helped me greatly to understand things and given me ideas. I am curious if you will tell us what other platforms you use?
The 40 40 Method is quite simple and can be used for most sourcing opportunities, not only liquidation. Find the retail price of the lot or item (or MSRP) and multiply this number by 40%, this is the low side of what you should expect to earn for this liquidation lot (of course item condition and how the item sells on ebay/amazon comes into play). Take this amount and multiply it again by 40%. This represents the amount you want to be into the product for. In some occasions it is ok to go a little higher than this (if the product is good) however this will at least set a guideline for you to work with. Leave your questions down below.
Actually, for some people it is not. Tried discussing it in an ebay reseller fb group and all I'm getting is hate for it due to people not understanding basic math.
Blows my mind what some people are paying for these lots. Makes me scratch my head sometimes. Bunch of new sellers or personel use. could be auction rage wars and more people than I realize get caught up into that sort of thing. Love the 40/40 formula its right on spot. Your a math genuis my friend. One of the kind I would set behind in college. Just joking but really never did like math until I actually needed it. Thanks a 100. Now all I need is your spread sheet.
Great video!!! Thank for you for your valuable knowledge!!!
Great technique for pricing pallets! Video starts at 7:45
Glad it was helpful!
Thank you so much. This is gold to me. I'm in the first steps of going down the resale path. I'm trying to learn the basics and these videos are an excellent guide!
Thanks Derek! Good luck to you!
@@FlippinAintEasy No problem and thank you!
Another great informative video John!!! You go into great detail on explaining on how things work!! In my opinion that is what separates you from other reseller UA-cam videos not in just what sold!!! You make a great teacher thank you for all the helpful information!
I enjoy helping! I am happy to hear you liked the video.
The 40/40 method sounds good, but I had to quit buying from liquidators because I had way too many defective items AND other buyers were bidding prices well into the 30% of MSRP. Good advice. People are paying way too much for this stuff.
Buying liquidation has its risks for sure. Customer returns allows you to obtain inventory under 20% retail and it is virtually impossible for resellers to achieve this when buying new with clearance items possibly being the exception.
It’s definitely a lot more competitive, I blame tiktok. So many new resellers entering the game.
@@Westcoast10 That's what I assume. But I also see players leaving the game. What I see is that Goodwills and SAs having nothing but junk. I'm having to redo my whole sourcing game from scratch.
@@ljwhitmire200 I feel you bro same! I was buying pallets of media from a liquidation discount store that ended up screwing me over. Long story short I was told by their manager that the owner wants to maximize profit so they’re starting to sell on eBay and amazon, and that’s due to the increase of competition with liquidation stores opening up. I’m just building up capital to use towards another business venture, I’ll still be reselling but it’ll be nice to have something unrelated to it.
@@Westcoast10 Me too. I'm trying to start another business, but Ebay keeps blowing up my store and I have to spend two weeks fixing it - quarterly updates. :P One thing is for sure, nothing stays the same. At this point I don't feel like the effort is worth the trouble anymore.
As a starter, its good to see similarity in how you operate. Thanks for all the great info.
Your welcome. Thanks for watching!
Love this. More videos like this please
This is amazing! Thank you. I am starting looking into wholesale. I live in SouthCal and there are some liquidators around my area. I want to go and see what they have as well.
I would definitely like to see the unbox of this order, it would be great... Great Job Flippin' Aint Easy...
I would too. Do you know they still haven't shipped this order out to me almost a month later. They are telling me next week so I am hopeful to have a video on this for you soon.
Please post results for the Bstock pallet. Thank you.
Check out the video I did on this last week I believe. We have it all listed, waiting for the high volume replenishes to sell but all in all sells are good as expected. Waiting for two more pallets from bstock that we just ordered and will do another video on that one as well. Stay tuned.
If I gonna spend that much I'd rather look in to retail arbitrage as then if fault you can get a refund on any purchase look at clearance sales and clear the shelf in a shop and you got no risk with buying new good liquudation stock could be bad returns
there is something is missing here...or I missed something:
18112x0.4= 7244.8 return, your cost with shipping shouldn't be more than 7244.8x0.4=2897.92 dollars. You paid 3025 bidding +3300 shipping = 6325 dollars which is way off you 40% equation.
With really good lots and I’m talking the ones where you know you’re going to sell them for 60% off retail (sometimes higher) I will turn the formula into a 50/50 model.
I use the 40/40 the way I do to give myself an idea of what I will make and what I will spend before messing with a lot. I think the one in the example was for an above average pallet.
@@FlippinAintEasy Thanks for the clarification...👌
Nice technique!
Thanks!
Of course this is all predicated on the fact of how fast you can move this merchandize and not sit on it for long time. Which as things are selling now is problematic.
That’s very true. We shall see however we will also be listing these on other platforms as well.
@@FlippinAintEasy I do so love your videos. You have helped me greatly to understand things and given me ideas. I am curious if you will tell us what other platforms you use?
why does your house look like your garage, boxes every wear. Reminds me of my house.
Not the entire house just my work area. Many times I go from working to making the video then I clean up.