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TheJonasCollegeFund
Penny Collector Member
USA
381 Posts |
Posted - 08/08/2010 : 09:16:51
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Two thoughts here.
#1....I think the biggest issue with starting a small scale operation (business), like some are doing here, is cashflow on a limited bankroll. Not to mention the fun and, to some of us, the addiction this hobby or whatever you may wish to call it does to us.
#2....However you look at it, you still get more out of your money than just putting in the bank. What are savings, checking, CD's, money markets, and mutual funds doing on returns these days? And then taxes after that. Selling at 1.3xface still beats most of these...right? |
MD Totals: Started Aug16th.(Updated Sept10th) 819 clad/cu coins/$41.13
Quarters-78
Dimes-122+1 silver roosie (1957)
Nickels-81 (56d,53d)
Copper Pennies-147
Zinc Pennies-386
Wheats-5 (36,36,46,46d,50d) |
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highroller4321
1000+ Penny Miser Member
USA
2648 Posts |
 Posted - 08/09/2010 : 11:19:23
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quote:
Originally posted by Fatboy
quote:
Originally posted by highroller4321
If you have 1 ryedale and sort $400 and get 25% copper return. Assuming you have only a few jams thats 2.5 hrs worth of sorting time. Assuming your bank is close and you don't have to wait you have 10 mins pick up time and when returning them using a 4000/min coin counter you have 8 mins counting and 7 mins of waiting for them to change bags. Add in 15 mins worth of driving. Add in 10 mins worth of packaging. Add in $2 worth of tape and $11 to ship. Add 10 mins round trip to the post office.
Machine costs. Ryedale is good for at least 5 million coins. 40000/5000000 = .008% of the machine use. .008 X $500 (cost of new machine) =$4
Sell for 1.3 times shipped.
Sold $130
-$100 FV
=$30
-$2 tape
=$28
-$11 shipping
=$17
-$4 machine costs
=$13
Not factoring in the cost of electricity or the cost to use your car/truck/van or anything else.....
Profit of $13 for 3.5 hrs of work. You made $3.71 an hr and had a profit margin of 3.25% on your investment of $400.
Yes, this will go up if you sort more than $100 at once but unless your sorting a lot and cutting down on your driving timw its really not gonna be that profitable to sell for 1.3x shipped.
This is why I don't get how or why people sell for so little...
Using your numbers, if you could sell local and get rid of the shipping charges, you might get up close to $7.00/hr! :)
OR if you did it on a slightly larger scale ...............
Yes, but its pretty hard to find a local buyer....most of the time anyway.
Yes, you could do a larger scale but the hourly pay, using the same machines and selling figures, is only going to go up slightly per $100. |
Copper Penny Investing
www.portlandmint.com |
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highroller4321
1000+ Penny Miser Member
USA
2648 Posts |
Posted - 08/09/2010 : 11:22:02
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quote:
Originally posted by TheJonasCollegeFund
Two thoughts here.
#1....I think the biggest issue with starting a small scale operation (business), like some are doing here, is cashflow on a limited bankroll. Not to mention the fun and, to some of us, the addiction this hobby or whatever you may wish to call it does to us.
#2....However you look at it, you still get more out of your money than just putting in the bank. What are savings, checking, CD's, money markets, and mutual funds doing on returns these days? And then taxes after that. Selling at 1.3xface still beats most of these...right?
#2 Well it all depends on how you value your time. To me $3 something in hour is not worth my time.
In this situation your time is much better off spent doing something else. For example my little brother buys blackberry and other "higher end" phones off of craigslist and resells them on ebay. He will spend maybe 20 minutes a day on craigslist, drive to meet the person in the same town he lives in, put the phone on ebay and usually doubles his money.
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Copper Penny Investing
www.portlandmint.com |
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JobIII
1000+ Penny Miser Member
USA
1507 Posts |
Posted - 08/09/2010 : 15:39:24
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Another thing Most of us haven't really considered is that selling at 1.3 or 1.5 whatever, I don't think we're including the wheats, IHC's and other oddities that are found in each sort that can sell for more.
Also something to consider, Time does not equal Money. |
Selling Copper cents. $0 FV available at 1.4xFV. Also interested in trading for wheat pennies and other coins Please pm me for requests or inquiries.
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selling and profit number crunching
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