If you’re new to flipping cell phones, you probably need some motivation to get started. Here are some tips I learned over the years.
1. Flipping requires money, space, and time. If you don’t have these three, I would be hesitant to get started flipping phones full time. Buying and selling cell phones is a gamble. Cell phones can be expensive. You will need to have the money upfront to buy a cell phone before you can sell it for more money to make a return. You will need even more money if you are buying multiple phones all at once. Don’t forget, there is also the possibility that you will make a bad call and will take a loss on a flip. Fraud and scam can be common and if you aren’t careful you can lose $300 quickly.
Buying and selling cell phones requires a lot of time. You will need to make many visits to Craigslist sellers to inspect the phone and buy it. A quick pick up can turn into a half hour visit. Sometimes you will have to drive further than expected. Other times you will get there and the phone quality sucks so you have to make the decision not to make the purchase. If you are selling on Ebay, you also have to make many trips to the post office.
When you have phones coming in and out, they will take up space. I keep my phones on a shelf in a closet until I flip them. However, the more phones you stock pile, the more space you need. Additionally, as you buy and sell more phones online, boxes will start to pile up. Your first thought would be to throw the boxes away after you receive a shipment, but it makes more sense to keep them around so you can use them to ship other phones.
2. Use your network. You would be surprised how many of your friends and family have cell phones lying around their houses. Let people know you will buy their phones from them. It’s a lot easier to make a purchase from someone in your network then the hassle of meeting with a stranger. You can also get a better deal from someone that hadn’t planned on selling their phone to begin with.
3. Make confident flips. Don’t buy a phone if you don’t know how much you can resell it for. There are plenty of tools to use to value a phone. If you can’t estimate what your profits are before purchasing the phone, move on without it. Keep up to date with the market value trends. You should also know what tools work best in the location you live in. For some areas online selling is better, while other areas have a better market on Craigslist.
4. When selling on a website such a Ebay, understand the fees involved. You can’t forget to include the fees in your calculating your selling price because they will affect your profit margins and bottom line.
5. Be careful of bulk buys. Sometimes you’ll see a lot of cell phones for sale. Most of these phones will be junk and worthless. However, it will be marketed and presented as a great deal. You will almost always lose money trying to flip this.