If you know that something is going to happen, you can make money off of it. This fact is something that many people take advantage of when a new console system is released. I decided to try out for myself with the release of the XBOX 360.
How can you make money when a new console system is released? Supply and demand. If you identify that the new system is going to fly off the shelves and sell out, you know that the price is going to go up.
People are going to be willing to pay more for the system because their kids really want the system and can’t wait for it. Other people are going to want it for themselves and can’t wait for more to be produced.
The XBOX 360 sold out pretty quickly creating a sellers market. If you checked the prices on ebay a couple days after the system was released, you saw that the systems were selling at $100’s over the retail price.
I didn’t buy a system on the release day. However, I was able to snag one a week or two after at Costco for $517. It was the premium XBOX 360 bundle with 2 games. I then listed the system on craigslist and sold it for $650 a week or so later.
It probably took me 2 hours total work to buy, list, sell, and deliver the system. After taking into account gas money, I made $125. That works out to be $62.50 per hour, not bad at all.
Here are a few tips if you decide you want to try this yourself with the upcoming PS3 or Wii.
- Buy the console somewhere you know you can return it if the system doesn’t sell. Costco and Walmart have outstanding return policies.
- Know the rules for selling on ebay if you plan to sell it there. There are lots of scammers looking for easy targets. If you’re not careful, you can easily be scammed and lose your system.
- If you plan to sell locally, accept cash only. There are lots of scammers in your home town also. Many will try to give you a fake money order or check for your system.
- Meet in a public place if you are delivering the system. I used a grocery store in a good part of town. You might want to bring a friend with you. You never know who might show up to “buy” your system.
- Undercut your competition in price. There will be many people trying to do the same thing as you. Sell the system for $25-50 cheaper than the other sellers to make sure you aren’t stuck with the system.
My reselling of a new console experience was fun and interesting. Make sure your’s also ends well by having a plan and protecting yourself.