Decrease Your Expenses And Increase Your Profits
9 Minute Read
We all want to increase our profit margins as much as possible, right? Below I’ve put together a list of 8 things that I’ve found helpful in creating just that. Read on to find out how you too can decrease your expenses and increase your profits.
*(Special Announcement at the end of the article, Stay Tuned)!
Don’t Overdo Shipping Fluff!
Ahh, the shipping fluff. We all know these peeps. The ribbons, the bows, the sparkles, and such. Yes, I completely agree that it is super cute and fun…however, if we’re talking profits here, (which we are), then this is probably going to be your first stop to cutting expenses.
I would highly recommend cutting this down to just some simple tissue paper or a piece of ribbon. Possibly a Thank You sticker at the least. It’s always nice and appreciated to thank your customers, (after all, they’re the ones providing your profits aren’t they)?
A lot of people will understand or may not even like all of the extras. (This leaves an exception for breakables that may need bubble wrap or extra padding). Many sellers are focusing these days towards a more Eco-friendly and minimalist packaging approach, myself included.
(This is geared more towards Poshmark users, and “spreading the Posh love,” but can also be applied to selling on any platform you may be using).
Limit Your Listings!
By “limit,” I simply mean to find a number of listings that works best for you. Try a few different listing strategies, whether this be different times of day or different quantities of listings posted.
Either way, listing less will save you time sourcing and ultimately save you on your total COG (cost of goods). Find the number that keeps your sales consistent, but keeps your listings and costs at a minimum.
(Personally, and this is just my opinion, I’ve found that after a lot of trial and error, 4 is my number. I’ve tried 5, 10, 15, 7, 12, you name it. I have also found that listing around mid to late afternoon seems to work best for me. I used to think that the more listings, the better. But have since noticed that any sort of consistency is key.)
Only Purchase What You Need!
Seriously though, it’s so easy to overspend. Especially when you’re starting out. Everything is so enticing and it’s just so easy to have Amazon deliver your new goodies in 1-2 business days!
Unfortunately, (this is extremely important in your beginning stages of reselling), overspending can get out of hand pretty quickly. You’re new to the game, so you of course think EVERYthing sounds like a brilliant investment. It’s not. (I clearly learned this from experience).
Only buy what is absolutely necessary at the time. I’m sure this can be applied to pretty much any business venture (and although this is not direct business advice, I believe this is a good rule of thumb to live by).
For example, you’re probably not going to need like, 10 of everything, “just in case,” and it is most doubtful that you’ll need the expensive Jiffy steamer right off the bat. (If you’re looking for a few items to get you started, check out these 14 Little Products that Make Big Changes in Your Business).
These are definitely things worth investing in, in the future, but for now, just focus on your day-to-day expenses. Quality is extremely important and will last longer, but part of the beauty of becoming a reseller, (Stop over to read this short article about my 22 Reasons Why I Became a Reseller) quite simply is the fact that you can start with pretty much what you already own.
Lower Your COG.
“Work Smarter, Not Harder.” This is something my husband reminds me of a lot, and I have to agree. By lowering your cost of goods, you can in turn boost your profit margins by a large amount.
When I say to lower your COG, I simply mean to “source smarter.” I used to go to like, literally every Goodwill on my way to or from somewhere. We all know Goodwill’s have gotten quite pricey so that of course took a pretty penny out of my wallet.
If you have a “yard sale season” like I do, (as in, I only have a handful of months of out the year that I can go yard sailing, *sad face*), then I highly recommend this being your first go-to for sourcing. (Learn through this link about my top 10 Unlikely Places to Source From)!
Many times, they are already more affordable than most Goodwill’s, and a lot of people will be willing to accept you negotiating with them. This year, I’ve upped my game some and began looking for sales that have a lot of what I search for, offering the owner a bulk price, therefore lowering my average COG/item.
This is more doable for me now that I’ve saved up a little to be able to offer someone a bulk price. Whereas when I was starting out, I was just looking for anything cheap. (Not recommended)!
You could also ask around to family, friends, schoolmates or neighbors, and see if they are interested in you picking up their donations for them (saving them a trip to the nearby Goodwill) or offering to buy small lots of items for a bulk price that they may already be getting rid of.
Utilize Free Content.
Who doesn’t love freebies?! I know I do. There is oodles of valuable information all over the web, and it is quite literally, at your fingertips. This is something generations before us, never had, and it’s something that we all need to take full advantage of.
When I am talking about freebies, I’m simply referring to free information. It’s everywhere. YouTube, blogs, (such as this one), you name it. Pretty much anything you need help with is just a Google search away. No need to spend hundreds or even more dollars on courses you may not have the current funds for.
(This may be helpful down the road if you’re not finding what you need for free. Let’s face it, investing in yourself is the real deal. But until the basics just aren’t working anymore, saving that moolah is always number one)!
Be Conscious with Purchasing Inventory.
I simply mean, do your research. Take advantage of all of that free information out there that we talked about to be knowledgeable about your inventory! Don’t just buy to buy. Don’t just buy because it’s cheap. These can be expensive mistakes in the long run and are not worth repeating.
Make checklists or notes to take with you thrifting so that you are prepared and can be sure that you are purchasing things that are hot sellers right now. Don’t waste your money on things that are going to sit in your inventory forever. Remember, you are a reseller, not a storage unit!
Study and study some more the items that have high turnover rates, and that will yield you a better margin. This is how you grow. In time you will start to have the feel for what is a winner, and what might just be a bad buy.
Don’t Outsource Until Necessary.
Outsourcing can be quite handy if your business can afford it. Unfortunately, most businesses starting out, are not going to be able to budget this. And that is completely okay! This especially goes for if you are only a one-woman or one-man show. By keeping your expenses low, you’ll once again increase your profits.
Making the leap to begin outsourcing to another individual, or company is a big decision. Will they fit your needs? Will they be able to meet the quotas that you’re comfortable with?
Until you’re absolutely 100% sure that you can hire on another employee, or outsource another need to a larger company, you may want to keep your profits to yourself for a while. Do the work needed if you’re able, and you will be able to reap more of the rewards.
(When you are ready to start outsourcing, be sure to brush up on these Services That Create More Freedom in Your Business).
Make the Most of Your Time.
Time is Money! Don’t procrastinate, first and foremost. Procrastination will only put you behind schedule, and you’ll be stuck playing catch up.
Instead, use a strategy such as “time chunking” to complete your tasks more efficiently. Therefore, saving time, and saving money.
This goes for when you’re working at home, or if you’re out running errands, (i.e. doctor appts., school waiting lines, etc.). If you are making the most of your time pockets throughout the day, you’ll be more likely to complete everything that needs to be done, instead of rushing to finish everything at the last minute.
Summary
- Don’t Overdo Shipping Fluff
- Limit Your Listings
- Only Purchase What You Need
- Lower Your COG
- Utilize Free Content
- Be Conscious with Purchasing Inventory
- Don’t Outsource Until Necessary
- Make the Most of Your Time
SPECIAL ANNOUNCEMENT!
P.S. Happy National Thrift Shop Day!!!
Today, August 17th is National Thrift Shop Day and I couldn’t be more excited to share this with you all!
Visit my Home Page to Shop any of my stores and receive BOGO (Buy One Get One FREE) to celebrate this exciting day for us all! Yay! Spirit fingers!
*(Simply message me BOGO on any platform to let me know you are coming from my website to receive the discount)!
Thanks so much for returning or welcome if this is your first time on my blog! I genuinely love what I do and only wish for others to feel the same success at their reselling careers (and their profits)!
We’re in this together and I’m so grateful to be able to share my stories and tips. I am always hopeful that I can provide some insight to further your knowledge as well for your business and am wishing you all health and safety during these troubling times. Stay positive and blessed! -Shelby
Thank You for reading today’s post”8 Things You Need to Do to Decrease Your Expenses While Increasing Your Profits”!
A giant thanks to everyone that has supported me this far into my journey including today’s article about how to decrease expenses and increase profits! I greatly appreciate you returning to read my posts hope that you will continue to drop by in the future.
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-Shelby
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