Maybe an interesting exercise, although the acquired "learning" of difficulty/challenges in shuttling large bulky items around without owning transportation...seems like maybe you should have seen that one coming?
Adventures in Aeron Chair Arbitrage
41–50 of 111 posts
Re: Adventures in Aeron Chair Arbitrage
#42Earlier quoted context omitted.
$300 for three guys. Once you factor in the girlfriend subsidy, they would have made better money with far less risk by getting shifts at local fast food restaurants.
He said they only worked for about 3 hours. Even if you take out $75 for the GF subsidy (being generous and assuming she gets an equal share), each guy made $25/hour, cash (i.e. ~$30-$35/hour pre-tax), which is >3x what they'd get at a fast-food joint. Now of course, one does need to take into account the fact that they're restricted in spending their loot on beer, which they are obligated to share. From a short-term…
The 3 hours doesn't include the research and preparations required to pull off this deal, so it's not a reliable number to be thrown around.
Re: Adventures in Aeron Chair Arbitrage
#43Earlier quoted context omitted.
>Did you really think arbitrage of used goods could be a business? Isn't that basically the business model for antique dealers and pawn shops?
err, yes, and I suppose used cars too. Maybe I should have been more specific. But pawn shops don't get into YC and I doubt Cal Worthington ever raised a series C round on Sand Hill Road. Those types raise money via bank loans (if at all) and most people in the valley would call them "lifestyle businesses". My point wasn't if such businesses exist but rather if Priceonomics really thought they could form a scalable b…
http://techcrunch.com/2010/05/12/internet-pawn/
Actually they do.
And a business doesn't need to get into YC or get VC funded in order for it to be a real business.
Re: Adventures in Aeron Chair Arbitrage
#44Earlier quoted context omitted.
>Did you really think arbitrage of used goods could be a business? Isn't that basically the business model for antique dealers and pawn shops?
err, yes, and I suppose used cars too. Maybe I should have been more specific. But pawn shops don't get into YC and I doubt Cal Worthington ever raised a series C round on Sand Hill Road. Those types raise money via bank loans (if at all) and most people in the valley would call them "lifestyle businesses". My point wasn't if such businesses exist but rather if Priceonomics really thought they could form a scalable b…
A bookstore isn't a scalable business either, but Amazon turned it into one. Do you really think there will never be an Amazon of pawn shops?
Re: Adventures in Aeron Chair Arbitrage
#45Earlier quoted context omitted.
>Did you really think arbitrage of used goods could be a business? Isn't that basically the business model for antique dealers and pawn shops?
Yeah, but that suggests that the success condition is running a pawn shop. Probably not what you're after if you are a software startup that's just taken seed investment.
isn't ebay technically a very large pawn shop?
wasn't it bessemer that passed on ebay because a company with a marketplace for used goods wouldn't amount to anything?
Re: Adventures in Aeron Chair Arbitrage
#46Earlier quoted context omitted.
>Did you really think arbitrage of used goods could be a business? Isn't that basically the business model for antique dealers and pawn shops?
err, yes, and I suppose used cars too. Maybe I should have been more specific. But pawn shops don't get into YC and I doubt Cal Worthington ever raised a series C round on Sand Hill Road. Those types raise money via bank loans (if at all) and most people in the valley would call them "lifestyle businesses". My point wasn't if such businesses exist but rather if Priceonomics really thought they could form a scalable b…
This seems like Silicon Valley echo-chamber thinking at it's finest. If your definition of a scalable business is based on the number of VC rounds raised, or which prestigious incubator it comes from, then no, I suppose it's not a scalable business.
Re: Adventures in Aeron Chair Arbitrage
#47Earlier quoted context omitted.
err, yes, and I suppose used cars too. Maybe I should have been more specific. But pawn shops don't get into YC and I doubt Cal Worthington ever raised a series C round on Sand Hill Road. Those types raise money via bank loans (if at all) and most people in the valley would call them "lifestyle businesses". My point wasn't if such businesses exist but rather if Priceonomics really thought they could form a scalable b…
A bookstore isn't a scalable business either, but Amazon turned it into one. Do you really think there will never be an Amazon of pawn shops?
Well, if you take out the collateralized-loan portion of the business, both Craigslist and eBay fit the bill.
Re: Adventures in Aeron Chair Arbitrage
#48Earlier quoted context omitted.
A bookstore isn't a scalable business either, but Amazon turned it into one. Do you really think there will never be an Amazon of pawn shops?
Well, if you take out the collateralized-loan portion of the business, both Craigslist and eBay fit the bill.
Not quite: maybe I just want to put all my stuff in a truck, give it to a guy, and get a check. I don't want to worry about shipping and accepting payment from a hundred different people and keeping my listing up to date and figuring out pricing and not getting scammed.
Re: Adventures in Aeron Chair Arbitrage
#49Earlier quoted context omitted.
Agree 100%. However we had to front $1500 in capital and we nearly lost it all when the check initially wouldn't clear.
I used to do lots of reselling and arbitrage on Craigslist during my poor student days. Here's my experience. As a general rule of thumb, always ask for cash. Or ask for a cashier's check if the buyer is not comfortable with carrying large of cash around. Don't accept anything else (e.g. personal check or even paypal).
What about square?
Re: Adventures in Aeron Chair Arbitrage
#50Earlier quoted context omitted.
$300 for three guys. Once you factor in the girlfriend subsidy, they would have made better money with far less risk by getting shifts at local fast food restaurants.
He said they only worked for about 3 hours. Even if you take out $75 for the GF subsidy (being generous and assuming she gets an equal share), each guy made $25/hour, cash (i.e. ~$30-$35/hour pre-tax), which is >3x what they'd get at a fast-food joint. Now of course, one does need to take into account the fact that they're restricted in spending their loot on beer, which they are obligated to share. From a short-term…
Wouldn't the $25/hour still be taxable? (I understand that nobody pays taxes on small cash amounts, but if we're considering its viability as a business it seems unfair to compare one option with tax evasion and one without.)