Countdown to Live Boot Camp

'Product Sourcing on craigslist!'
by Lynn Dralle, The Queen of Auctions

Over the cold winter months, I hear from a lot of you that there are no garage sales, there are no estates sales, and the thrift stores price too high! Now that it is summer, I can totally sympathize with you. Here in the desert, when the temperatures soar up to 120, there are not many garage and estate sales either.

craigslist.org is our answer! I got to do some fun research buying on craigslist for my presentation at the eBay Radio Party in Las Vegas last Thursday.

I am going to share my tips and tricks for sourcing on Craigslist.org with you here.

1. Search the craigslist.org website or post your own wanted ad

First you must pick your city. As you can see in this screenshot, I have chosen my city as Palm Springs. See the arrow on the right that shows where you can click on your city.

On craigslist there are two ways to search (by keywords or by category) in addition to posting a "wanted ad."

To search by keywords, just type in some of your favorite "buzz" words.

See the arrow on the left hand side of the image that shows the blank search box.

Some of my favorite "buzz" words are: China, Flatware, Sterling, Collectibles, Dinnerware, Books, Estate, Lots, Closeouts, Serving Pieces.

To search by category, just click on the category that you are interested in and peruse the advertisements. I like the antiques, collectibles, jewelry and garage sales categories.

See the arrow in the center of the image that shows the categories.

2. craigslist protocol

Now we get to the tricky part, the protocol. I always call or email first to get more information. There is nothing worse than a wasted trip, when you get there all they have is "alotta nada." My mom and I say that quite a bit when out yard saling. It means a lot of nothing. Nada is "nothing" in Spanish and when you say it with a lotta (for a lot of) in front it rhymes and is a fun thing to say when you get back to the car and are discouraged!

Once you get the seller on the phone or email them, ask a lot of questions. I ask prices, patterns, condition, number of pieces available etc.

From the craigslist advertisement above, I called to ask what pattern of Lenox were they selling, the condition, and how much they were asking for the set. I also inquired about the sterling flatware set (that is what I really wanted) but he was asking $1,500. I ran the numbers and there was no way I could make anything on that.

He told me that he wanted between $300 and $500 for the Lenox set. It was a service for 8 and the pattern was Laurent. He also told me that there were quite a few serving pieces (as I could see in the photos).

Laurent is a very good classic pattern! I quickly checked my favorite dinnerware replacement site and the dinner plate listed for $49.99. I made an appointment to see the items that afternoon.

Here is a photo of the Lenox that I purchased for $400.

Now here is the most valuable lesson that I want you to take away from this article. NEVER GO ALONE. I am going to repeat this. NEVER GO ALONE.

I made the mistake of going alone that day in May and I knew the entire time I was driving there that I should never have done this. It is stupid. You should either take someone with you or meet in a public place. Period.

3. craigslist negotiations

In any negotiation, I always let the seller name the first price. It is their merchandise and they should know at what price they are willing to sell.

At that same house, there was a table of merchandise that looked really neat. It was the kind of stuff that my grandma would have carried in her antique store.

I asked how much. The seller told me that he had done his research and he wanted $400. No way, I thought in my head.

My second tip for craiglist negotiations is to have done YOUR research. I was able to research the Lenox prior to arriving and knew that based on the replacement prices I would do just fine with the set within that $300 to $500 range.

I wasn't able to do any research on that wonderful table full of antique merchandise that was presented to me, but I was able to use one of my grandma's tried and true tricks.

COUNT THE ITEMS.

I pretended to be thinking and while I was doing that I just counted the items. Hmmm, 40 items on the table. There were some great antique maker's marks on that table. I knew that if I paid an average of $5 each, I would be fine. Even if I just started each auction at $9.99 and they all sold, I would double my money.

I countered at $200 and he agreed. Well, I had already spent $400 on a dish set and the seller did not want the public walking through his aunt's house. It was a done deal!

4. craigslist sales strategies

Since you typically pay more for items from craigslist (because these people are Internet savvy and have probably done some research) I suggest that you list your items at higher starting prices at auction to try and cover your initial investment.

Here are my Auction examples from this "experiment."

Of the $600 I spent that day, only four things sold at Auction. But don't worry. It is all going to turn out just fine in the end. Here are the four items that sold at auctions.

Flow Blue Cup and Saucer Set. I started this at $49.99--quite a high starting price for me. Click here to see what it sold for.

Iris Staffordshire Antique Pitcher. I started this at $49.99 and was really happy when it sold for a lot! Click here to see the listing.

Lenox Cabbage Large Serving Bowl. I started this at $49.99 and click here to see what it sold for. Click here for the listing.

Handpainted Roses Cake Plate. I started this at $24.99. This listing is here.

If your items don't sell at auction, raise the price and wait for the right buyer! I do this because my craigslist finds are typically higher quality items.

5.    My Results from my craigslist Experiment

I quickly raised the prices and moved every item into my eBay store. Very quickly, I sold these items:

Lenox Gold Cabbage Bowl. I had eight of these and they were originally listed at auction for $9.99 each. In my eBay store, I listed these at $19.99 each and within a week had an offer at $13.50 each. Sold! $108.00 towards my initial investment. Awesome!

Here is what those looked like and more info from the listing.

Then I sold this Lenox tray for my asking price. Higher than the $9.99 I had it listed for at auction. See the eBay page here.

You have got to love eBay stores! In any event, since I did this presentation for eBay Radio (last Thursday) I have sold a vase for $55.00 (that was listed at $69.99 obo), another vase for $24.99 and a creamer and sugar (today!) for $19.99 each.

With the initial auctions and eBay store sales I have recovered $476.47 within a few weeks from my initial $600 investment. This should be your goal. Cover that initial investment right away and then wait for the rest to sell from your eBay store.

Remember that while your investment is being covered, you will be selling older eBay store items. It is an awesome way to do business. Keep adding merchandise and rely on the older stuff to add the profit.

Bottom line, I sold $476.47 right away at auction and from my eBay store...and in my eBay store I have another $2,702.80 listed at full price with obo (or best offer). If I sell it all at listed price, I will have sold $3,194.27 from that $600 investment. That is a 5.3 X return on my investment.

Awesome! Much better than the stock market or gambling in Vegas! When I revealed these numbers in Las Vegas at the eBay radio party, Griff cheered. I said "Thanks Griff!" and he said "I love it when you all make money." He is awesome!

Here's to eBay and your awesome sales this summer!

Happy eBaying!

Lynn