Yesterday I attempted to Drop Ship to create Manufactured Spend and so far things are working out- trust me when I say it is far from being a proven concept though as at any moment it could all still go very wrong. However, on Day 2, assuming all goes well, I have been faced by another tough dilemma which I have to wrap my head around… take the cash or take the points? Let me explain.
The concept of selling for profit is to buy a product for less than you sell it for (adding in all costs for the transaction, such as eBay Fees of 10%, and Shipping). However, since we are selling the Saverocity way we are looking for a little more profit on top of this, so its not a straight cash example, its points too.
Reasons why I picked Staples.com to sell from – these all stack!
- 5x Ultimate Rewards using my Ink Bold Card
- 5% In Staples Rewards
- 2x Ultimate Rewards (also could have picked 2% Cashback from Ebates, but I haven’t used this company so would rather the Ultimate Rewards).
- Product was on Sale – reduced by $120 (expires TODAY! 5/25)
- Product is eligible for $100 coupon discount (expires on 5/27)
- Product is eligible for Staples Ink Rewards payment (I get 1 x $40 coupon per month, and have 2 currently).
- Free Shipping – hopefully direct to the buyer….
All told, I was able to find a product for $347 sale price, after applying all my coupons, that will net me the following:
- 7x Ultimate Rewards on $347 = 2429 Ultimate Rewards
- 5% Staples Rewards on $347 = $17.35 (can be spent at Staples)
- Cash Profit – current price on Auction is $465 I think this will go up… and I am shocked! Already, if I can get Staples to ship I have a profit of $71.50 ($118 minus eBay seller fee of $465)
Dilemma Time – do I increase my cost basis in light of the higher than expected sale price?
I have the option to Not apply the $40 (x2) in Ink Recycling Rewards, and keep them… should I do it? Let’s look at 3 scenarios, assuming a sale price of $465 minimum:
Scenario 1, above, keep the cost basis at $347 and make the profit as outlined above.
Scenario 2, apply just 1 of the 2 $40 Ink Recycling Vouchers to the sale, my cost basis becomes $387, and:
- 7x Ultimate Rewards on $387 = 2709 Ultimate Rewards
- 5% Staples Rewards on $387 = $19.35 (can be spent at Staples)
- Cash Profit – current price on Auction is $465 I think this will go up… and I am shocked! Already, if I can get Staples to ship I have a profit of $31.50
Scenario 3, apply no Ink Recycling, Cost Basis becomes $427
- 7x Ultimate Rewards on $427 = 2989 Ultimate Rewards
- 5% Staples Rewards on $427= $21.35 (can be spent at Staples)
- Cash Profit – current price on Auction is $465 I think this will go up… and I am shocked! Already, if I can get Staples to ship I have a loss of $8.50 alternatively, you could look it as buying 351 URs for $1 Dollar, (plus getting $21.35 in Staples Reward)
Stay tuned… I’ll let you know how it works out.
UPDATE- Day 2 1/2 Disaster Strikes!