How to Make Money Selling Second Hand Bikes
The second hand bikes market is one of the most inefficient and unorganized market. Some of the important problems associated with this market are
- It is really difficult for a buyer to get a seller without involving a third party
- The buyer has no way of finding out the true value of bike that he is buying. Hence buyers tend to discount these bikes more than they deserve.
- Sellers are more than happy to sell the bike at a stiff discount only to close the deal as soon as possible.
- Most importantly buyers are reluctant to buy the bike from someone they do not know. As we know from marketing books, markets that need trust pay a huge premium for a brand.
As we shall see in the remaining parts of this article, the above points provide an ideal opportunity to make a lot of money by trading in used bikes.
What do you need to start this business?
The key is in finding good bikes at a discount. Hence a strong knowledge about bikes and an ability to figure out potential problems by taking a test ride is extremely important to succeed as a second hand bike trader. Next skill required is negotiation skill. You need to be good at figuring out the price at which someone will settle. This is where you will be able to make money.
Some initial money to buy couple of bikes and do necessary repair will help you make even more money. But do not worry if you do not have the money. Close the first few deals with lower profit margin and you can always use that money to buy bikes with the profit.
Where to find second hand bikes?
The information is not that difficult to find.
- Newspaper classifieds ads are a good source for finding out about good used bikes for sale.
- Online classified sites have a good amount of information as well.
- Look out for your local bank auctioning the repossessed bikes
- Final target should be to get people to come to you directly to sell their bikes.
How to get a good price for your second hand bike?
Once you have purchased the bike, there are certain things you can do to get maximum value out of the bike.
- Get some basic repairs done. Tidy up the look of the bike, repair any dents that may be there.
- Make sure that the bike is not producing any unnatural noise.
- However do not go overboard with improvements to the bike. No matter what you do, no one is going to pay you more than a new bike!!
Trading in second hand bikes is an exceptionally smart way of making good amount of money. Please share your experience with us if you have ever tried the same.