Rob & Melissa Stephenson from Flea Market Flipper talk about whether flipping is a recession proof side hustle or full-time gig.
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Reseller Hangout Podcast - Is Flipping Recession Proof?
Rob: What's up, guys? On today's episode, we are talking about recession. Is flipping actually recession proof?
Melissa: So today we're gonna dive into is flipping items a recession proof side hustle or gig, full-time gig? So let's dive into it.
Rob: That's right. And I don't know about you, but if I have personally heard the word recession a lot lately. So it's one of those things that you definitely want to know if you are trying to pick up a side hustle.
If you are in a side hustle of flipping, is this something that is sustainable throughout a recession? So that's really what we wanna dive deep into today.
Melissa: Yeah. And recession is really, I mean, it's defined as six months with the economy, not growing. So, but you really are in it before you even know that you, before it's official of the recession, like you're still living it.
So, we are not using this term to, you know, freak anybody out. We're just trying to help you to be prepared and proactive.
Rob: Absolutely, and you probably have, like I have heard it a lot lately, the word recession. Are we in a recession? As a recession coming, we've heard a lot about that. So we definitely want to give you guys information about, hey, is this possible?
Can I actually do this? And the other side of the fence is maybe you're not flipping yet, but you're looking for that side hustle that you can actually make money if you do lose your job, if you're downsized or something like that. So is this a viable, is this something that you can do and still thrive throughout a recession?
Melissa: And another term that's getting thrown around is inflation too. So this could be something that could help make some extra money because dollars don't quite go as far as they used to. So we've all felt that.
Rob: So let's break down what flipping is, guys. We're finding undervalued items, whether that be in the trash, whether it be at a thrift store, whether it be at a flea market or yard.
It's an undervalued item that somebody is getting rid of. We're taking that and bringing it to a market to where we can sell it for what it's actually worth, not over what it's worth, and just whatever the market value is of that item.
Melissa: So that's bringing it to a new market.
Rob: Exactly. A new buyer, somebody who really needs it from somebody who didn't need it. For whatever reason they sold it, they trashed it, they gave it away whatever it was, that's where we're bringing it. So.
Melissa: And they didn't have the time to look for that person themselves, so they got rid of it.
Rob: So another good question would be, are we gonna be able to find items? If there is a recession, are we gonna be able to find those items that we can bring to the new market and still make money on it?
Absolutely. So that, Go ahead. No, go ahead. That's something that you want to consider. In our books we have gone through, and this is a different recession than we've gone through back in, what was it? '2007? 2008? So yeah, 2007 or 2008, somewhere in that area. We have gone through that recession.
And it was very easy to find amazing deals and still bring them to another market and make money at them. Yeah.
Melissa: Flipping really helped us get through that too, cuz so that was, right when we got married, absolutely.
Rob: So this one is gonna be a little bit of a different recession if we do hit a recession or if we go through it.
Because it more is caused, I believe, from inflation if I have an understanding.
Melissa: I dunno how the whole thing works.
Rob: But it's one of those things that.
Melissa: I know when we're affected.
Rob: That's the biggest thing is we have to know if we can find some good deals and, in our opinion, absolutely there will be more deals out there throughout a recession that you'll be able to find amazing items, Amazing things to flip.
You might have to think outside of, if you are a flipper, you might have to think outside the normal way that you think about, flipping or different items, different categories. You might have to do it, but there will totally, absolutely be some good deals out there that you'll be able to really make some money on.
Melissa: And actually, it can be a really good time to find items because I mean, unfortunately there will be businesses that do go outta business, by either, you know, inflation or whatever it is. And there's, I mean, there no matter what, even when the economy's really great, there's businesses that go outta business, but it's even more so, so, like we notice we can get appliances a lot easier.
We notice, you know, and people might be downsizing or moving. And so they're selling stuff in their homes, and there's all different reasons and then there's people that aren't affected by it at all, who are still moving and need to get rid of stuff at their house and whatnot. So that is will always keep happening.
Rob: Yeah, absolutely. So you will be able to find stuff in the trash, whether somebody's downsizing and has to get rid of stuff. Businesses will go out of business because they can't, and we don't ever want to capitalize on somebody's misfortune. No, but that stuff has to go, like if a business is in a building, And they have to get out of that building.
Melissa: Sometimes they just want it gone.
Rob: Absolutely. They want it gone. Or they have to the owner of the building, if the tenant leaves because they can't afford the rent, the owner of the building has to get rid of it, or the tenant's gonna sell it off and get rid of it because they need to get rid of it before they get kicked outta the building foreclosure or anything like that.
Like I said, we don't wanna capitalize on somebody else's misfortune. But it's one of those things where we can offer the tenant some money. Whoever's business it was, we can offer them money to where they're not gonna totally lose it. And it's one of the things we can bring it to a market that actually will appreciate it, will need it. Somebody else will absolutely need it. So, that's one of those things that you will be able to find some deals out there, whether it is people throwing stuff away, whether it's people downsizing, whether it's people, you know, getting new stuff for the people that aren't affected by a recession, they will still upgrade their kitchens.
They'll still get, give appliances away. They'll, you know what I mean? There'll, there'll be so much stuff out there that you will totally be able to find some deals that you can get them, clean 'em up, get some good pictures, and then actually throw them back onto, For us it's eBay. We love eBay because it reaches so many people.
But you can throw it out there to that market to where you actually can sell it and make some money.
Melissa: And another reason why we think that flipping is more recession proof too is because when people are looking, or when people are trying to save money, they are looking for deals and people still need stuff.
Like you still need items. So, but instead of going buying brand new, you might say, okay, well if I can save a couple hundred dollars, couple, whatever it is, I'm gonna go buy used and get my still good quality item that I want, but at a discount. So that will, that helps a lot of people.
Rob: So that's a great point.
That's the flip side of the coin. So we're gonna be able to find good deals, but those people who are going to need good deals, you're right. Think about yourself in a recession. The money doesn't, you don't have as much money as you were, whatever reason is, say your refrigerator goes out, are you, Or just planning like people, you know, you're just trying to be more prepared and yeah, for sure.
But your refrigerator goes out. Are you gonna go to Lowe's and finance that $2,500 refrigerator or maybe are you gonna jump on marketplace or jump onto eBay, look for a refrigerator, that you can save half of that on that you can buy that. Are you gonna do that and save some money versus going out and financing or paying cash full price for that.
Typically most people when they're trying to be conscientious of their finances, they're not gonna go and spend money that either they don't have or more money than they could find it used and actually get the same deal, buying a used appliance for sure.
So that's one of the things. The flip side of the coin is there will be people out there looking for amazing deals. You'll be able to connect the two together. A great deal that you're gonna find with somebody who needs it, who's willing to pay money for it.
Melissa: Yeah, so I mean, if you look at traditionally, thrift stores tend to thrive, the lower priced stores like Walmart tend to thrive when there's a recession or a lower economy. So we're in that same market. So it can be a good time to, thrive in your flipping business if you're prepared and you're ready to go find some good deals.
Rob: So, or maybe you're listening to this and you think your business might downsize somebody.
Yeah, you, you might get let go or you might get laid off or something like that because of the recession. It's definitely worth exploring to see if it's something that you would enjoy. We always tell people, you know, start slow in this business. Don't dive all in. Don't, don't go crazy by a truck and a trailer and go all crazy on it.
Definitely step into it one step at a time. You start slow so you guys can see if it's something that you enjoy and then you start expanding, then you can get bigger and bigger. You can, you know, start buying and selling bigger items, whatever you want, but definitely start slow in this business.
Melissa: Yeah, and this is definitely our favorite side hustle.
Rob: If you can't tell!
Melissa: Side gig.
Rob: So if you're thinking about exploring it, definitely check it out. So for sure. We love it.
You guys rock. Thank you so much for listening and we'll see you guys on the next episode.