Rob and Melissa Stephenson, from Flea Market Flipper, talk about the one thing that helps them get 1,000-2,000% ROI on their flips.
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The One Skill That Helps Us Get 1,000-2,000% ROI On Our Flips
Rob: What's up, pro flippers? On today's episode, we're talking about that one skill that helps us get 1000 to 2000% ROI on our flips.
Rob: All right, so today is an exciting one. We just came off of a mastermind that we traveled to Boise, that we actually did a little sourcing while we were there and found an amazing item inside of one of the thrift stores.
Wanted to talk to you guys a little bit about the skillset that if you grow it, it's a little weird at first, but if you can really grow and develop the skillset, you have the potential to make ridiculous flips.
Melissa: Now we go to, and you pretty much source everywhere we go. This one was a little different because we were out of state and we flew there.
Normally we have our truck and trailer, so we have, we can, you know, throw it in, whatever we flew there. But we also have some friends there that I said they'll ship it out once it sells. So it's a pretty cool one that we just found. And you found it in this thrift store, you probably could have spent hours in that thrift store.
It was a lot of stuff, right? Not this one. Oh, it was the other one. Sorry. So went to two different thrift stores. Yeah.
Rob: But one of the thrift stores was amazing. It had so much cool vintage old stuff from the fifties, sixties, electronics really, really cool place. I loved it. I didn't buy anything.
I did more of just doing a lot of research. And then we went to the other thrift store, which was more of a builder supply thrift store. And that was where we found this item. And are we talking about the item right now? Yeah, for sure. So I walked around the whole store looking at electronic stuff.
I mean, electrical stuff like wiring and plugs and stuff like that. I got to the back of the store, found some doors, some toilets, some sinks and some other stuff like that. And then I moved over to the other side where they actually had some long boards and stuff and in the back of the warehouse, this tall looking freezer, thing on a pallet was sitting back there and I was like, is this thing for sale?
It's way out of place. It wasn't where all the other stuff was. And sure enough, I went back there and it was a Steam oven, brand spanking new. Still had, the plastic wrap on the sides on the door. Had the installation kit on top of it, still in a box, never even installed. And I knew these were expensive.
We've sold some commercial appliances before and I knew this was expensive. I didn't know how much, but it was brand spanking new. So, no price tag on it. Went up and asked the guy how much it was. He told me 1700 bucks, but I'd be willing to take $1,500 right off the bat. I said, hey, would you, and my buddy who was with me, he's like, dude, you're a master.
How do you do stuff like this? And right off the bat when he said $1,500 is lowest will go. I was like, I'll take it. If you can go to a thousand bucks, I'll pick it up tomorrow. And he goes, sold. If you'll pick it up tomorrow, I'll take a thousand dollars for it. So we actually got it for a thousand dollars.
I did a little bit of research before I actually went and negotiated the price. I looked on eBay. Looks like the used ones, and this is a new one, brand new, never been installed. Looked like the used ones were selling for upwards of $5,000. So I was like, all right, a thousand to $5,000. Not spectacular, but this is brand new, so I got to take into account I should be able to make more money for this.
So we ended up buying it, paying a thousand dollars for it. And then I started doing some research on what the new ones were, and there's no new ones listed on eBay. So when I started looking, the new ones were priced at between $30,000 and $43,000. So I knew, that we would be able to get some really, really good money.
Remember what we're trying to go for on used items is at least 50%. If it's in really, really good condition, we'll try and get a little bit more than 50%. So we listed this item for $20,000, $19,997, so a thousand dollars investment. Into which I, to be fair, I mean we'll do the numbers once we sell it, but it was $1,060.
Yeah. I had to pay $60 in tax. Always try to be honest with you guys, but $1,060 investment into a $19,000 or $20,000 item. Amazing. Amazing. Just off of, off of the skill of negotiation, I almost saved half of what they were actually asking for this.
Melissa: And you were gonna list it for $15,000 at first. I was. And then you went ahead and listed it for $20,000 because then that gives you some wiggle room, to send offers, which we all wanted to touch on a little bit too 'cause that is a negotiating part on the sale.
Rob: Absolutely. So not only negotiating in person, but like Melissa said, when you're selling items, you have to be ready to, negotiate as well, to be able to move that. Now, I, I have a thousand dollars into this. I can negotiate $10,000 down if I really want to and still make, 10x my profit on this, which that's what we really are shooting for, but you still have to be willing to negotiate.
So I've had this listed, I don't even know, not even a week yet, had a couple watchers on, and immediately I start sending out offers because that's how I negotiate. I don't say that I'm willing to take less than what I'm listing for. I have it listed for $19,997, but then when I start to see people looking at it or watching it, I'll send an offer out. I'll send an offer out to try and get the business to come in, and that's where I'll drop it a thousand dollars and see if I can go to $18,997. So $19,000, I'll be very, very happy if we sell this for $19,000 and the buyer is gonna be super happy that he doesn't have to pay $40,000.
He can get this one shipped directly to his business store house, for half of the price. So when that right buyer buys it or sees it, they're gonna snatch it up very quickly.
Melissa: So one question that people probably have is, why would anybody donate something like that to a thrift store? And then, you know, the thrift store probably had it for a while 'cause it's a large item, people don't, typically it takes the right person to find that big item in the small market.
So, which is what we definitely talk about a lot because we like to bring it to the large market on eBay and ship them, but why would somebody even donate that?
Rob: Such a great question. And you are a great interviewer, I'll tell you that 'cause I didn't even think of that question. Yes, you're a hundred percent why, right?
Why was this donated to a thrift store? Now this is a a hundred percent, donation thrift store. They told us it was donated to them. So they made a thousand dollars on this item just, just from somebody delivering it to them and then them selling it and getting it out of there. But the reason this was, and this is my theory, I don't have, I don't have all the answers.
I don't know. But the reason why that I believe this was donated to the thrift store was it had a little dent in the side. It was on a pallet. It's already strapped to a pallet ready to go for me, which I love that I don't have to pallet it up. It's done. But the reason why I think that do they donated it was it originally had something fall on it, dented in the side, and that was the only damage on it. Just a little dent in the side.
Melissa: And once it was installed, you wouldn't even see it. So you would not, because only it was cosmetic.
Rob: Only see the front of it. So it had, oh, sorry, there wasn't a little dent in the back as well, that maybe something else fell on it or it pushed or something like that. But that was the only thing I could, I could, see that was wrong with it. And my theory is that it wasn't shipping or something dented it. They couldn't sell it as a brand new oven. So they're like, we will take the write off. Plus they probably had insurance. They got it insured for the full amount of whatever it it was damaged for. And then they donated it and that's how they did it. And that's how it ended up in the thrift store. And now for me. I just pulled three screws outta the side of it, laid it on its side, tapped out the little dent, so you can't even see it anymore. Put it in there. But you better believe when I list it, I actually say, you know, there are some scratches, scuffs on this.
Of course, I always list all my items with proper expectations on it. But I want people to see that and I take pictures of what actually is wrong with it if there's something wrong with it. So that is why I believe we got this so cheap. That is why, how it ended up in the thrift store. And like I said, this is all theory.
I'm not a hundred percent sure this is what happened.
Melissa: That's close to probably true.
Rob: But for a brand new item to end up there and just with a dent in the side of it, that's exactly why I believe 'cause it's never been installed, never been plugged in. Like I said, the accessory kit with it was in a box, had all the copper piping to actually plumb it into a business or a commercial kitchen or something like that. Had the electrical, plug still in there, the whole thing was in there, never, never opened up. So that's what my belief is on it, and that's how we got a good deal on it.
And now a lot of people ask us too about testing an item, and something like this.
I don't, are you planning to test this?
Absolutely not.
Melissa: Okay. So if it wasn't brand new, yeah, that's the thing. Is that, so you're not gonna, so what if somebody were to get it and it didn't work? Or would you just list it for, a, a smaller or lower price point?
Rob: So if it was used and I was unable to test it, I would sell it as is.
And that's, I mean, we've sold stuff, a lot of stuff like this. I would sell it as is, untested and then I would tell whatever information I had about the item. If I bought it from our, an individual and they told me, hey, we just updated, updated our kitchen, or we did away with our exercise room. Yeah, yeah, yeah. And a treadmill or something like that. Yeah. Anything like that. That's what I would relay in my listing. I would say, hey, we just got this, unable to test it due to the power supply that it requires. But from previous owner told me that there's nothing wrong with it, and that's how it's being sold, but it's being sold as is.
No returns. You can do that. Just saying it's been being sold as is.
Melissa: And I think you have to sell it as for parts of repair now, right?
Rob: Parts or repair
Melissa: Yeah.
Rob: Will allow you to sell it without somebody saying it's not as described to take a return. So. When you're listing a category, you do it there.
Melissa: It's up to you and your business and what you think is the best for your business. So.
Rob: That's the smartest way to do it because if somebody does get in and say it doesn't work, all you have to say is, listen, I was unable to test it and that's how I sold it. You're, you're selling it for a discount. So they're getting a good deal on it, but they're taking the risk on it.
That whatever was. Sold to you in whatever condition it was, that that's what they're taking the risk on and getting a better deal on it.
Melissa: So we kind of got away with the whole main part of this podcast was supposed to be talking about negotiating and, which is not surprising. Why is that so important in this business?
And if you, if it makes you nervous? 'cause it does make you nervous in the beginning. Most, most people, it's normal for that to make you nervous, but for you to have the confidence to say, hey, I'll take that for a thousand if you'll give it to, you know, and he said his bottom line was $1,500. Yeah. Before you offered, made the offer, right?
Rob: Yeah.
Melissa: So how do you get that confidence? Yeah. Is it just keep doing it, doing the reps or how would, yeah, have that confidence?
Rob: I, I knew even before I did all the research to see it was a $43,000 item. I knew what I wanted to be at was a thousand dollars. So I set that in my head. If he would've said $1,200.
Believe it or not, and this might be hard for some people to believe, I would've walked away. I wouldn't, I would've not bought it because a thousand dollars was my price tag that I wanted to pay. So, but I have the confidence that I would make money on it. And the other thing is, in person, it's a lot more awkward, more awkward to do a negotiation.
But I've done it for so long. It's a learned skill once you learn how to do it. Once you get good at it, that's what my buddy who is with me, up there, he's like, dude, you're a magician. Magician.
Thank you. I can never get that right. The musician, the music or the magic. So, but my buddy's like, dude, this is insane to watch you work because.
The guy said it was $1,500 and you got him down to a thousand dollars just by asking and telling him. And that was what I tied into it. It looked like it was in the back of the warehouse, just sitting back there, not even where it should be displayed. Right. And I thought it was in their way and I said, I'll get it out tomorrow.
And that was his button. That was the button that needed to be pressed as, yes, if you pick it up tomorrow, we will sell it. I want it outta here. I want more room in the back of the warehouse. So, that's what I did. So just reading people and understanding how they work is a learned process or a learned skill.
But you can totally do it. Now, when and,
Melissa: and when you, sorry, I didn't mean to cut you off, but when you went to the, the flea market for the first time, you said that you were terrified and when, 'cause you used to go with your mom when you were a teenager and, but right, yes. To the flea market and you went the first time and you didn't talk to anybody 'cause you were scared to negotiate.
So I just wanna say like, if people are scared, it's normal to feel a little awkward, but it is something that you can gain confidence in doing and there is a right and a wrong way to do it. So, which we can talk about too, but. If you wanted to say something. Yeah.
Rob: And so don't think that you are the only one who feels weird negotiating, because I wouldn't even ask people prices for items if they didn't have it marked on it.
I'd walk right past it just because I was, I felt so awkward of if it was a hundred dollars even saying, yeah, no, I don't want that, that kind of stuff. Really, really, it, it, it was hard for me to do that. But then when you start doing it and you very politely, you know, if you ask a person a price on an item and they're like, a hundred dollars and you only wanna pay $10 for it.
You can always say, oh yeah, a little bit more than I was thinking, but thank you. And then just walk away. That's exactly what I did. But you'll learn to get better and better at it. And I don't know if, part of my problem was I was young. And that's why I feel awkward. Maybe you're here and you're like, dude, I love negotiating.
What are you talking about? I'm awesome at it. That's awesome. Great. But if you, if it does feel weird and you, it, it doesn't feel natural for you to do it. Don't worry, you can learn the skill and online, it's way easier to actually do it on the app, versus actually having to be face to face with somebody.
So that is something that you can totally learn as well. But yeah, really, really cool. When you learn the skill set, it can change your business because even just this taking us from $1,700 down to $1,500, down to a thousand dollars, that leaves us more time and more money on the end. That's where our money's always made in the buy.
You're getting these items as cheap as you possibly can, but it's not like I offer the guy a hundred bucks for this that he wanted. Yeah. $2,000 for, that's not, I'm not trying to insult people. I'm trying to give them a fair offer, get it out out of their hair, and then I'll do the rest. I'll, I'll take the time and the effort to sell it the right way to the right person. And that's what I'm doing. I'm bringing it to a bigger market and selling it to the right person for more of what, it's not even really what it's worth. We're still giving them an amazing deal of way, way undervalued, but it's, it's a better o option for selling items.
Melissa: Yeah. And I, I was gonna say that you can, and like you said, you just negotiated at a thrift store and most people think, how do you negotiate a thrift store, but you don't know you did that with, for the Hobart slicer too.
At the one thrift store out there. I did. You're right. Because a lot of times these bigger items sit for so long and whoever's the manager there, if they, their goal for their thrift store is to make money. And if stuff is sitting there for a long time, it's not making any money and nobody can make any money.
So if you go in there and you offer them something and like, I think the biggest part of. Learning to negotiate is to know how to be polite. Do it the right way, be respectful, because there are people that, you know, there's certain times you'll get an offer. It's just the way people come across, like you're accepting of offers, but it has to be done the right way.
Yeah. And it just has, you just have to be polite and you're not offended if somebody gives you a low ball offer. Yeah. You're just like, no, thank you. So anyways, I think just being polite and not like criticizing the item. That is a huge one that a lot of people like to do when they wanna, if you come to an item in person and they want, you wanna, you know, cut the price down even more. They're like, oh, this is wrong with it. Oh, this is wrong with it. That's not something you do. No, absolutely not. You will point things out or say, sorry, I thought it was in better condition, and walk away if you need to. Yeah, but you don't try to pick and prod at the item. No.
And trying to get them to go down.
Rob: No, absolutely. And I think about one of a closer story closer to home is when we try to sell a Pilates machine in the house.
Melissa: I think we told this story before, but I guess we can say it real quick.
Rob: Real quick cliffNotes version. We had a Pilates machine. Somebody came, they drove like an hour, hour and a half away.
It was brand spanking new, never been used. I got it from a store. The guy gets there and tries to tell me how the springs are stretched out. And I'm like, this is a brand new machine. It's never been used.
And you already negotiated with his wife on the, on the app. I told him before they came, listen, this is the price.
If you don't want it, no big deal. But this is the price. It's not coming.
Melissa: But you'd already come down. You already.
Rob: I did. I came off on my regular price. Yeah. I came down a couple hundred bucks. He came here and he tried to tell me, you're going to take. And this is not the right way to negotiate. He came there and told me, you're gonna take this much, and I don't remember what it was.
I think it, I had it marked at maybe $2,200 and I told him I would take $1,800 cash. They came and he's like, you're gonna take a thousand dollars for this because this is bad. The springs have to be reordered. And I was like, yeah, no thanks. I told your wife it was gonna be, and his wife was the one who I talked to or negotiated with me and he came in and thought he was gonna strong arm me to sell it to him for the price that he wanted.
And I was like, yeah, no thanks. I told your wife this was the price. If you don't want it, no big deal. And he's like, no, no, no, you're gonna take this. And I said, no, the door's right there. I'll see you guys later here. I'll let you guys go out. He walked out and got mad, and, they walked, sat in the car for like five minutes, came back, knocked on the door and said, okay, we'll take it.
And at that point I was already pissed. You come into my house and tell me that I'm gonna take a price. And I said, no, no, no, it's not for sale anymore. And then he started getting pissed and started beating on my door. And I was like, oh, this is kind of crazy. So this is the only time it's ever happened in my, don't, don't let almost three decades.
Melissa: Don't let that scare you, but that is why we don't do, stuff at home anymore. We always meet somebody, even with larger items.
Rob: Public place, that's what we teach as well.
Melissa: Yeah.
Rob: But
Melissa: meet in a public place and meet somebody, or at least have somebody at the house with you. But we don't do, at home pickups anymore.
Rob: All, all that being said is that is the wrong way to negotiate. Yes. No matter what you think, that is the wrong way. Don't pick apart, you don't strong arm anybody and don't try and do that. So, that's the wrong way to do it. The right way to do it is always be polite. You're never gonna lose anything by being polite.
Melissa: And people can take it or not.
Absolutely. And if you don't know their situation, they, you know, they might be super grateful. They've had this thing forever and they're just ready to, for it to go. Yep. So you never know where people are at. Yep.
Rob: But it is a even thrift store. If that guy would've come back and said, $1,200. I could have, you know, went on the fly and said, ah, or I could have said, yeah, to be honest with you, a thousand bucks is all he really had to spend on this.
And he could have come back and said, okay, I'll do a thousand. But he didn't. He was super happy to get a thousand bucks, which I'm all, I'm excited to get it for a thousand dollars as well. Leaves me more profit on the back end of it. So.
Melissa: Well let us know what you guys think about, let us know. Hit us up on Instagram or Facebook.
Do you negotiate? Does it make you uncomfortable? Are you amazing at it? Is it so much fun? Because once you really practice it, it is kind of a game. It is fun and as long as you're doing it the right way and not, you know, being rude, you, it's a, it's a fun game to do back and forth. And it's kind of, you even say it is kind of like a dance, especially even online offers. Like when you get an offer, you're like, oh, I'm not replying just yet. You don't wanna be too excited about it. So there's just, there is some psychology behind it, which is pretty cool to, absolutely, to hear. So, and if you're listening to this, we are about to kick off our live four-week workshop, eBay Launch Labs.
So if you are, don't miss it. Just getting started and you have been wanting to get started. This is a little more beginner. But if you've, you've been thinking about, I wanna get started on eBay, but you just haven't done it yet. This is perfect for you. So.
Rob: Or maybe you sold years ago and you're like, I don't really know how to get back into eBay.
This is where you need to be. So, grab the link below, hit the link below, register, grab your seat before they sell out. Guys, we are super, super excited, to be able to hang out with you today and hopefully at the, I forgot what it's called, sorry, eBay, launch Lab, launch Lab. Melissa does all that stuff.
Just so you know, I just come here and provide the entertainment. If you haven't figured that out, I'm the entertainer, but anyways, so we'd love to see you guys. You guys are amazing. Thanks for joining us on this episode, and we cannot wait to see you until the next episode, the next one. See you later.