Turning $20 Into $5000 - Jeffreys Challenge

[jeffrey]

<b>Previous Total</b>: $22.56

<b>Current Total</b>: $22.56

<b>Inventory</b>: Nothing

Some good news. The person says he wants to buy another 10 sets of the Star wars cards. I checked with the local shop and they still have plenty of the set so there isn't a problem there. Payment hasn't come yet, but that should add about $30 to the total after all the expenses and will give me a little more room to buy some items that have the potential to earn a bit more money.

[jeffrey]

<b>Previous Total</b>: $22.56

<b>Current Total</b>: $2.56

<b>Stock</b>: 17 sake cups (half ownership)

My wife and I went to a get together last night and I was talking to some of them about my $20 to $5,000 challenge and told them that one of my biggest problems with this task is finding the time to do it. As much time as I spend on savingadvice in addition to my other commitments, I have limited time to try and make the money.

I sell a lot of Japanese medals in my spare time because there is a decent profit margin and by doing so, it allows me to spend more time on the website (instead of going out and finding a part-time job to earn some extra cash). I know that there is quite a bit of potential profit in Japanses sake cups, but I don't sell them very often because of the time it takes to wrap them so they don't break while being shipped overseas. For the limited time I have, medals make more sense because they are easy to wrap and send meaning I can list more of them each week.

While talking, one of them suggested a split of duties: if I list the items, she will wrap, address and send them - we split the profits 50/50. If all I have to do is take the photos and list the items, then I should have time to do this and it could turn out to be quite profitable. I also have complete confidence with her wrapping the items as she is a perfectionist in such things.

Today I went to a local flea market and picked up a few nice boxes of cups. One box in particular I'm excited to list as I think they will sell quite well. I purchased 17 cups total for $40 ($20 mine, and $20 hers) which puts me down to only $2.56, but it's a chance worth taking. This will most likely be the make or break purchase of my challenge. if this works out, I should have a money cushion even if I make some mistakes later on. If not, I am counting that the promised sale of the Star Wars card sets comes through since I will need that money if this fails.

The cup price of about $2.35 a cup was a great find - usually these cups sell for $5 - $10 each when sold individually, so the bulk buy was the way to go). Not all of them are in perfect condition, but that is part of the risk in buying in bulk. Luckily, most are in good condition. A few have rim chips and acouple have hairline cracks, but even with the imperfections, the patterns are good and I still think they will sell. I will be listing them tomorrow and will keep my fingers crossed.

There hasn't been a whole lot of movement on the Olympic pins and medals I listed for my friend since the burst of bidding when they were first listed. Ebay tends to be this way - most bidding takes place on the first and last day of the auctions. I have some more items from him to list to, so tomorrow is going to be a busy listing day.

Time to start taking photos and preparing the listing for tomorrow...

[jeffrey]

<b>Previous Total</b>: $2.56

<b>Current Total</b>: $2.56

<b>Inventory</b>: 17 sake cups (half ownership)

An interesting comment in the main section of the challenge:

"<i>I think the only way (unless you're really lucky) to turn $20 into $5000 is by also investing a lot of time. I suppose with my job, I am continually trying to turn $20 into $5000 many times over. I buy a domain, get some hosting, and then try earn money through advertising. It doesn't just happen, though... it also requires a lot of work and time.</i>"

As I mentioned in my previous post, one of the biggest obstacles I'm finding with my challenge is finding the time. Obviously, working the ebay route means that I do put time into making this happen - I think from now on I'll also list the time it takes me to earn the extra money (time to go through the drawers and see if I can find my old stopwatch)

My goal is not to spend more than a couple of hours a day at the most, because that is all I really have and that is probably pushing it a bit. We'll see how the time factor works out as things progress.

[jeffrey]

<b>Previous Total</b>: $2.56

<b>Current Total</b>: - $2.74

<b>Inventory</b>: 17 sake cups (half ownership)

<b>Time Spent</b>: 1 hour 54 minutes

<b>Time Spent Total</b>: 1 hour 54 minutes

Techincally I'm bankrupt at this moment due to the $10.60 (split in half = $5.30 to me) in fees for listing the 17 sake cups today - but since I don't have to pay the ebay fees at this moment (not until the bill comes) I'm still solvent with a bit of money in my envelope here.

If the cups don't sell, then I'll be in real trouble and my challenge may be over, but it should (fingers crossed) work out okay in the end since I'll have a bit of money coming in when the medal auctions I listed for my friend end.

The SW card guy said he was going to purchase 10 sets, but I haven't heard anything back from him after send ing a few emails so I'm not sure that will pan out. It kind of hurts as I already knew what I was going to buy with the money when it came in (some more cups I came across), but I may have to pass on them since I don't have any funds at the moment.

I started recording the time it takes to do this challenge (good thing I found my stop watch). I spend just under 2 hours taking photos, loading them onto my computer and setting up the auctions. The time is a bit off on the total since I just started today, but over the next five months it shouldn't amount to much of a difference.

Here are the auctions I listed for anyone that is interested:

<A HREF="http://stores.ebay.com/Cards-and-Medals_Military-Sake-Cups">17 Sake Cup Auctions</A>

Since I don't have any more money at this point, I will spend some time listing a few more items for my friend since that doesn't cost me any money to do. Again, it's finding the time.

[jeffrey]

<b>Previous Total</b>: - $2.74

<b>Current Total</b>: $32.44

<b>Inventory</b>: 17 sake cups (half ownership)

<b>Time Spent Since Last Post</b>: 0 minutes

<b>Time Spent Total</b>: 1 hour 54 minutes

I'm back in the black! The star wars 10 set sale came through and he made payment today. After deduction paypal fee and the cost of the sets, I come away with a $35.18 profit which puts me back into the black and means that we can now purchase those other cups that I had been wanting. I will go and purchase them today since the shop is next to our local grocery store and I will make a shopping run today.

[jeffrey]

<b>Previous Total</b>: 32.44

<b>Current Total</b>: $4.94

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 15 minutes

<b>Time Spent Total</b>: 2 hour 9 minutes

Went on a bit of a buying spree and picked up 3 bottles, 10 cups and 3 mini plates at the antique/rececly shop near our local grocery store. Since the trip to the grocery store was already planned, the time spent was only about 15 minutes in the store itself. The total came to $55 which gets split in half to $27.50 each. They are a bit more expensive than the last box we bought, but there are some nice ones inside that could sell really well. Will prepare those and list them on Thursday.

I also picked up the 10 sets of cards that I sold. The store still has sets left, so I will list them again too since the form is already done.

The Coca Cola set failed to sell again. A lot of people had it on their watch list, but nobody purchased it. Will give up on that for now and take my losses. Maybe when the world cup is in full swing again. At least I didn't buy the set and have it as excess inventory. That would have been a costly mistake att he beginning.

There were a lot of other interesting little things at the antique/recycle shop that I was temped to pick up (some old bike parts, some advertisement banners, etc), but the funds just weren't there at the moment. I will certainly be making another trip there if the cups sell.

Now it's just a wait and see game...

[jeffrey]

<b>Previous Total</b>: $4.94

<b>Current Total</b>: $4.94

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 0 minutes

<b>Time Spent Total</b>: 2 hour 9 minutes

Let's hear it for the little green guy - in other words the "kappa" (mythical Japanese lake creature) that has jumped in price to $30 on auction. Those friend's Olympic pins are doing a lot better than either of us had dreamed and the five together are already above $80. That means at least another $20 will go into the fund. I hope the next batch does as well.

[jeffrey]

<b>Previous Total</b>: $4.94

<b>Current Total</b>: $4.94

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 15 minutes

<b>Time Spent Total</b>: 2 hour 24 minutes

As I said before, I don't see advertising being a big part of my income here, but I'm not adverse to trying to make it so. Since I have <A HREF="http://5000challenge.blogspot.com/">$5000 Challenge blog set up</A> (even with fun photos of some of the stuff I talk about) I need to now let people know about it. I spent the last fifteeen minutes sending out emails to other blogs asking to trade links. We'll see if any respond...hopefully a few will which will help get word around a bit more.

I also posted the link on a few of our other sites which should help bring in a little traffic.

[jeffrey]

<b>Previous Total</b>: $4.94

<b>Current Total</b>: $4.94

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 0 minutes

<b>Time Spent Total</b>: 2 hour 24 minutes

While I won't count this as income directly, over the next 5 months it should put more profit into this challenge. If you have payal, their standard merchant rate is 2.9% + $0.30 for receiving money. If you do more than $3,000 in transactions over a 3 month period, then you can get this rate lowered to 2.5% + $0.30 per transaction. If you do over $10,000 in a three month period, the rate can be put down to 2.2% + $0.30 per transaction.

<b>The important factor here is that you have to apply for the rate</b> - paypal won't automatically give it to you. I just passed the 3 month mark (I took some time off and didn't qualify for awhile) and my new rate is 2.2% instead of the 2.9% I had been paying. While .7 % doesn't seem like a whole lot, it's an extra $70 minimum per 3 months into my pocket instead of paypal's pocket.

Since I'm using auctions to invest and grow the money and most people pay by paypal, a portion of this fee reduction will come to my total earnings in this challenge.

[jeffrey]

<b>Previous Total</b>: $4.94

<b>Current Total</b>: $4.94

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 53 minutes

<b>Time Spent Total</b>: 3 hour 17 minutes

I spend 15 minutes wrapping the Star Wars cards sets to send out so that transaction is completely done - they will go out in the morning mail.

I also spent 38 minutes going to many of the forums I frequent and changing my signature to the $5000 Challenge blog. Again, I hope this will drive a bit more traffic to the site. I also made a few posts and replies so I'll check the stats tomorrow to see if more people have been visiting.

I'm off to take photos of the items I bought yesterday, load them up and prepare the auction listings for tomorrow.

[jeffrey]

<b>Previous Total</b>: $4.94

<b>Current Total</b>: $0.14

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 2 hours 13 minutes

<b>Time Spent Total</b>: 5 hour 30 minutes

I took all the photos of the newest batch of cups and bottles I purchased, loaded them up and placed them all on auction this evening. You can see everything we have invested in thus far <A HREF="http://stores.ebay.com/Cards-and-Medals_Military-Sake-Cups">here</A>. Ebay lising cost came to $9.60 which gets split in half for $4.80 to me leaving me with a grand total of $0.14 and half ownership of all the stuff above. The other cups we plaed on auction earlier this week aren't doing so well at the moment, but most collectors seem to bid last minute on them so I have my fingers crossed.

[jeffrey]

<b>Previous Total</b>: $0.14

<b>Current Total</b>: $36.35

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 16 minutes

<b>Time Spent Total</b>: 5 hour 46 minutes

Let's hear it for those Olympic pins! My friend's olympic medals all sold for about what we had thought they would: $3.77. $5.51 and $13.00. The two pins did wonderfully selling for $57.56 and $64.51 (guess who is going to be looking for Olympic pins at flea markets from now on?) for a total take of $144.44 - I get 25% of that which adds $36.11 to my total. I spend 16 minutes mailing the people and I'm done - he will send the items out and collect the money.

It seems like I have put a lot of work into this so far with out much return (Only $36 ???), but I still have all those items on auction so hopefully next week it will be a lot more than that. The best part is that I've done my duties for all those items on auction. Other than mail back, I've finished since my partner will do all the wrapping. I have a good feeling going into the next month.

[jeffrey]

<b>Previous Total</b>: $36.35

<b>Current Total</b>: $36.35

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 0 minutes

<b>Time Spent Total</b>: 5 hour 46 minutes

It looks like I'll be starting the new month with $36 as a starting point. That means that I'll need to earn about $1000 a month for the next 5 months if I'm going to reach the goal. Seing how the bottles and cups sell will give me a good indication on whether or not I'll be able to continue with the current plan or will have to make some drastic changes. A few of the cups and bottles have risen in price, but I'm still hoping there will be a lot of last minute bidders to raise the prices a bit more.

I'm heading to a flea market tomorrow and will be looking for new possible things to sell. I hope to get some things that I can split the price on with me new wrapping partner as well as some things that will be easy to wrap so I can get the full price for them. My fingers are crossed and I'm looking forward to see what kinds of bargains I can find.

[jeffrey]

<b>Previous Total</b>: $36.35

<b>Current Total</b>: $40.72

<b>Inventory</b>: 3 bottles (half ownership), 27 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 5 minutes

<b>Time Spent Total</b>: 5 hour 51 minutes

An extra $4.37 added to the pot for a few minutes work. My friend who had me sell the Olympic items last week brought some more over this week. Among them were another <A HREF="http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=5225846258">Sapporo 1972</A> and <A HREF="http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=5225846402">Tokyo 1964</A> medal - we decided that instead of relisting them, we'd make a second chance offer to the bidder from the last auction. There is no cost to do this for him except the final value fee if the person accepts the 2nd chance offer - which the person did. The total for the 2 medals came to $17.51 of which I get 25% so that is where the $4.37 came from.

If you have multiples of the same item, second chance offers can make quite a few sales quickly instead of listing all your items again and again. I find that if I can get three or four of the same item, the second chance offers work well - and you only have to make the offer if the price is what you'd accept. When medals go for more than I expect, I often use this strategy.

[creditunionrate]

Jeffrey,

Hi,

It has been really intresting to read your $5000 challenge. Since you are in Japan, can't you go to Electronic District and buy something that can be resold with a high profit margin? Maybe some kind of bluetooth phone accessory?

I heard froma friend, that you can buy brake pads for $10 U.S to be resold to wholesalers at $40 and then retailed at $80...

[jeffrey]

Originally Posted by creditunionrate

Jeffrey,

Hi,

It has been really intresting to read your $5000 challenge. Since you are in Japan, can't you go to Electronic District and buy something that can be resold with a high profit margin? Maybe some kind of bluetooth phone accessory?

I heard froma friend, that you can buy brake pads for $10 U.S to be resold to wholesalers at $40 and then retailed at $80...

Since I'm in the countryside and a good 2 hours from the Osaka electronic district, at least at this time that isn't an option (with the limited funds I currently have). It may be something to consider once I have a bit more money to invest - will need to do my homework on that though - not an area I know a lot about. Another good option to consider.

[jeffrey]

<b>Previous Total</b>: $40.72

<b>Current Total</b>: $150.19

<b>Inventory</b>: 3 bottles (half ownership), 33 sake cups (half ownership), 3 mini plates (half ownership)

<b>Time Spent Since Last Post</b>: 4 hours 32 minutes

<b>Time Spent Total</b>: 10 hour 23 minutes

A huge amount to update since the last entry. Over the weekend I went to a flea market and piked up another 23 cups. Again, I bought these as a group for $75.00 of which I had to pay half which took $37.50 out of the fund. There were some nice patterns, but I was pretty disappointed when I got back home to find almost all of them had chips and / or cracks. I guess that's the way it goes sometimes. Those have all been listed <A HREF="http://stores.ebay.com/Cards-and-Medals_Military-Sake-Cups">on auction already</A> (one of the reasons the time spent on this has increased so much).

The first batch of auctions ended and the 17 cups did GREAT! They sold for a total of $321.96 of which half goes to me ($160.98). Take out $13.27 for my half of the ebay and paypal fees and it comes to $147.71 that gets added to the project. I wish I had more time and I would do all the wrapping myself if they keep selling like this.

That means I'm up to $150 plus a good inventory. It also means I can start looking at some more expensive items to buy 100% myself and resell and hopefully continue the sake cup partnership selling. I'll have a good time hunting this coming weekend.

[creditunionrate]

great job!!

maybe u can sell some advertising space on your ebay listings..

[DivaJen]

Awesome Jeffrey - way to go!

[jeffrey]

Thanks for the congrats...the last set of cups also sold well (although not quite as good as the first set). I just haven't had the time to write down the figures yet, but will do that in the morning (my time). The system is working well, but the question will be can I continue to find a supply of the cups to sell. I will definitely keep this up as long as possible and hopefully find a few more areas where we can increase the challenge money.