[Music] all right right welcome to another video everybody my name is Ryan roots and I along with my wife Allison and our one full-time employee and friend C we run an online e-commerce business so we buy stuff and then we sell that stuff online for a profit if you've watched our channel for a while you would know that we go to garage sales we go to yard sales we go to estate sales and thrift stores sometimes auctions and we pick up stuff that's underpriced that we can then turn around and sell on platforms like eBay for a profit now what we don't talk a lot about is the wholesale side of our business now because we are full-time resellers this is what we do for a full-time living most of our income comes from selling stuff online not from YouTube not from teaching people how to do this from actually selling the stuff online it's how we've made a full-time income for the past almost N9 years straight so because most of our income comes from reselling a lot of what we do is wholesale so wholesale for us could be purchasing you know 100 V vintage t-shirts Sometimes some people might call that a bulk buy we just kind of group that into wholesale but wholesale for us is also buying liquidation or buying actual wholesale from a distributor or from a manufacturer in the case of today's video what I want to talk about is a recent wholesale bulk transaction that we did which is exactly what you see behind me we bought a whole bunch of coffee machines so since we actually took delivery of these coffee machines it's been exactly two months so we bought everything on July 9th and today as of the time that I'm filming this video it is September 9th so I wanted to wait a little while so you can actually get true numbers of you know we've been selling these machines for the past two months I didn't want to just put out a video look at the stuff that we bought here's how much money we're going to make off the units I wanted to give you like real life actual data cuz someone like me um I am a analytical type person I like to see the actual numbers and know you know down to the dollar exactly how much money we're actually making it's all well and good to be a reseller and say you know I spent $100,000 I'm going to make a million dollar but at the end of the day if you don't know you know your actual cost of goods the money that you're spending on the product how much money in fees you're paying shipping and all that good stuff all that comes off and you're left with your bottom line so that's what I want to talk about today and I have a little cheat sheet that I made uh here it is right here so we're going to go over all the numbers again we've been selling these units we've only been selling them on eBay so no Facebook Marketplace no Amazon no other avenues of selling these machines we have sold them on places like Amazon in the past uh but for the sake of this video and for what we've been doing we've only been selling these products on eBay so I'm going to go through all the numbers and share with you where we are in this transaction I hope this kind of gives you a little Peak into the wholesale side of a reselling business again you don't have to do anything like this if you're happy going to thrift stores and yard sales and finding items and flipping them one at a time that's totally fine as well I just wanted to share with you and show you this other side of our business as well since the start of our Channel we've always wanted to be very open and transparent with our business so this is us being open and transparent the one thing that I will ask is if you do enjoy today's video consider subscribing to our Channel and hit the thumbs up button on this video feel free to leave a comment I read every single comment feel free to ask a question share the video if you want to um and then lastly if you do want to join a group of like-minded resellers we have a group on Discord there's hundreds of resellers in there all helping each other out the best part about it is that there's no egos we're all in there to literally help each other grow it is a paid group and you can join either quarterly or yearly we don't want anybody in there that's you know fly by night if you will we want people in there who are like ready to go who want to be successful resellers so it's $99 per quarter to join and there's a discount if you join for the year anyway I'll leave a link to that group in the description of today's video no obligation at all to join we have thousands of free videos on YouTube as well so that's just an extra group if you want to join to take your business to the next level okay so let's talk about this order like I said we bought these units all these units on July 9th and we paid $1,542 different models there's a Nespresso model and a delongi model the espresso model we got 123 units the delongi model we got 160 units for a total of 283 units for again $1,540 box models that could contain a few imperfections like scratch and dent right there might be a little scratch on one of the unit or there might be a little dance on one of the units and that is disclosed in the listing when we're selling the items on Ebay okay so sales now like I said we pretty much immediately took pictures and listed these items on Ebay to get them out there going um I did four listings so four listings on two of the same units two of the listings I did with shipping included so free shipping and then two of the listings I did with paid shipping kind of an experiment where I wanted to test you know which way sells better because most of the time you know know we offer free shipping on what we're doing the prices were basically the same right so one had shipping included for like $170 you know that was one of the units and then the other one would have had paid shipping so it would have been like $160 plus $10 shipping Now spoiler alert cuz I'm sure you're wondering which option did better the one with free shipping way outperformed for us the one with paid shipping now that doesn't mean that you can't sell stuff with paid shipping we did sell units with that paid shipping as well but I just want to let you know the one that had free shipping on it well outperformed the listings that had paid shipping so that's the first thing and now let's get into the actual sales now the interesting thing about this is the units sold are actually pretty close the delongi sold 43 units and the Nespresso sold 47 units so pretty close in the amount of units sold in 2 months that being said the Nespresso unit is a higher end unit so it's sold for more money so 47 units of that espresso sold for for a total gross sales so now I'm going to tell you before fees before cost of goods total gross sales of $738 the delongi sold 43 units for a total gross sales of $3,340 so if you take both units together we sold a total gross sales of $1,726 and again that's within the past two months so already you can see it's been 2 months and we have not broken even and that is that is how wholesale typically works with wholesale you're buying you're spending a lot of money UPF front and it might take you a while to recoup that investment and then get into profits so again I want to be open and transparent with you we spent $18542 months ago and we have not recouped that initial investment back gross sales on the units that we've made so far gross sales of $1,726 and then on top of that we have fees so shipping fees eBay fees and other fees associated worked out to about 25% of that amount so $2,681 now you have to take that off that Top Line so that gives us gross proceeds before cost of goods so before what we actually paid for the units it gives us a gross proceeds of 8,45 so that $1,726 minus our fees for doing business shipping Etc gives us a total of $845 so now we have to look at the cost of goods again we paid $18,000 $54 that was for everything the way that we run our business is we cost average everything because we're buying so many units so again 283 units we would take that $18542 183 and that would give us our average cost per unit so I already did the math for you the average cost per unit was $65. 38 so now what I want to do is take the gross sales after fees and divide it by how many units have sold within the last 2 months so $845 divided by total between the two units we've sold 90 total units within the past 2 months so $845 divided by 90 gives us an average sales price of $89. 38 per unit so now it's very very easy if we want to know the average net profit that we're making per unit you take $89.
38 the unit sales price and you subtract $65. 38 from that amount which gives us an average net profit per unit of $24 and based on those real world numbers now cuz we've run this for 2 months we know how much they're selling for based on those real world numbers if we take $24 per unit that we're making and we multiply that by the number of units so 283 units that gives us a net profit of $6,795 so now I can go okay on this purchase that we made we should make a net profit all things being equal if it continues this way we should make a net profit of $6,795 which is a 36.
