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Are you wondering how to make money on Craigslist? I’ve been using Craiglist to buy and sell a variety of goods over the last 10 years. During that time, I’ve learned a few tips and tricks that I want to share with you today.
Craigslist is just one option when looking to buy or sell online. eBay is a popular choice, as is Amazon.com. The thing that sets Craigslist apart is the fact that they charge you nothing! No fees to buy or sell.
Craigslist is also easy and convenient to use, allowing you to search for items by location. After specifying your preferred city, Craigslist automatically shows all goods and services specific to that location. This makes it easy to buy and sell when you are ready.
Know Your Product
If you are shopping for ANYTHING online, then put in the time to research prices, quality, and customer reviews. This sounds easy, but it’s an important part of any successful Craigslist deal.
Craigslist is a wildly inefficient market, and many Craigslist users don’t have a clue about the fair market value of items listed. I’ve sold used items for more than the going retail price. I’ve purchased valuable items for next to nothing. It’s a crazy market.
Subjective pricing is the essence of Craigslist, so you need to know the value of your items before getting started. Understanding used market prices is what will allow you to buy low, and sell high.
Learn How to Negotiate
I’ll let you in on a little secret here – always negotiate when making a purchase on Craigslist, and always stay firm when making a sale.
When you go to make a purchase, never give the seller full asking price. Offer a lower price and negotiate using these tips:
- Cash talks – Always be able to offer cash when negotiating a purchase. Many sellers want to get rid of their item and will accept a lower cash offer.
- Be Patient – If you email a seller about an item that is overpriced, and they refuse to negotiate, just give it a few days before trying again. This gives you more negotiating power and allows you to mention the items inability to sell at the initial price point. The exception to this rule is if the item is already at a rock bottom price.
- Be friendly – A lot of sellers will accept a lowball offer if you are friendly during the initial contact.
When making a sale, always stick to your listed price for a few days before entertaining lower offers. Unless you are desperate for the money, patience will usually lead to more profit.
If you learn to set aside your feelings while negotiating, you will greatly improve your profit margin. The worst thing that can possibly happen is rejection. If the other party won’t accept your deal, who cares? There are thousands of other Craigslist users waiting in the shadows.
Restore and Sell
Restorations are one of the easiest ways to make money on Craigslist. Here is how:
- Look for furniture, appliances, or anything else that needs to be restored. I’d recommend checking out garage sales, flea markets, and Craigslist to find deals.
- Dirty items are the easiest to restore, but if you know how to make minor repairs you will have more opportunities.
- Use your skills to fix the item, then list it on Craigslist for more than you paid.
We recently reconditioned a solid wood table. The table was in fine condition, just ugly with a variety of mismatched paint. We bought the table for $12 at a garage sale. After sanding and repainting it, we made about $100 on Craigslist.
Flipping on Craigslist
I’ve made thousands of dollars by purchasing goods at a discount, then turning around and reselling them for a higher price. This works for almost any category of item, but you have to know the value of whatever you want to flip. If you’re an expert in train sets, then flip train sets. If it’s cars, then flip cars. But if you know a lot about cars, don’t start buying train sets.
My areas of expertise include electronics and motor vehicles. I’ve bought and sold dozens of video game consoles, computers, and computer peripherals. I paid for part of my undergraduate degree by flipping cars and motorcycles.
It pays to shop around. I’ve bought sale items on Amazon and immediately listed them on Craigslist for a 100% profit. Always keep your eyes peeled for deals.
If you have room to store inventory, look for off-season purchases. Air conditioners, heaters, motorcycles, hunting goods and sporting goods are examples of seasonal items. These items are in high demand part of the year and often sold at a discount during the off-season.
Make sure to implement a few simple tips when you go to sell your item on Craigslist.
- Title – Make it attention grabbing and descriptive. “Like New” or “Antique” are big hits. Get creative here but don’t make it too long. Make sure to avoid pissing folks off with ALL CAPITAL letters or nine exclamation points!!!!
- Description – When you list an item on Craigslist, make sure to write a positive and promotional description which addresses all of the questions that you would have if you were looking to buy. Don’t be misleading, but don’t list every tiny flaw in the initial description.
- Pictures – Proper photographs are necessary to secure a sale. Make sure to take clear and inviting photos in a well-lit room, using several angles.
It’s free to sign up and list your items on Craigslist, and you can get started by selling the junk that you no longer use. After you get a little experience, move into flipping or another money making avenue.