How Do You Flippers Make Any Money?
I am not a flipper, nor do I want to become one. I find the occasional cheap/free bike, and I like to fix them up and either give them away to friends who need a bike or (in a lot of cases keep them as they have some sentimental value to me). But I tend to stay away from the really crappy bikes.
The other day however a friend called me to say she had picked up an inexpensive bike for her husband and would I be willing to "tune it up"? Absolutely - something to do in lockdown. When she brought it over it was a low end department store "dual suspension" mountain bike. I let her know that it wasn't a very good bicycle and the parts might be worth more than the bike but she said go ahead.....so I did. Long story short, it got a complete lubrication overhaul since the majority of the problems (besides the basic cheapness of the bike) were lack of maintenance. However, and here is where my question comes in, by the time I was done I had put nearly $100 in parts into it. Maybe its the pandemic but tires were the most expensive part at $28 each (CAD), one tube at $10 CAD (luckily one was still fine), and various cables (after much trying could not get some of the siezed cables undone so used inners (@$5 each) or full cables ($8 each) as sparingly as possible. I reused an old chain (free) I had as the one on there refused to budge after a good soaking..... Still if you are into a bike for $100 just to get it rideble even as a free bike I doubt I could ever sell it for $100...... how do you flippers do it? BTW - at each stage I confirmed with the owner that I was about to buy stuff and were they *really sure* they wanted it.....Bike is now pretty much as good (or bad) as it was when it left the department store (except for a few scratches). |
To make any money at flipping bikes you constantly have to be searching classified ads. It’s far and few between where I’m at, but once in a while a really good deal will pop up. You have to act fast and be willing to drop everything and go. Plus having parts and consumables on hand helps. I do it a lot but most of the time I don’t buy to sell, everything I buy is my size, I just find something else I like and recycle my profits. For me it’s about finding them and fixing them up for the next person. I’m happy to break even.
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When I buy a bike to flip the equation is pretty simple. How much will it cost to buy it, what does it need, and how much can I sell it for? If those numbers add up to a decent profit, I buy the bike. Otherwise, no. Of course, nothing is perfect, and there are always surprises. But I have never lost money on a bike. In the situation described above, there is no way you were going to come out ahead. I guess you just have to develop a good feel for the numbers, at least in your area. For that reason, you will make more mistakes with the first few bikes than later on.
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Originally Posted by kross57
(Post 21923390)
If those numbers add up to a decent profit, I buy the bike.
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Unfortunately the flippers who beat me to the punch around here do nothing to update, refresh the bikes and try to turn them with nothing expended...
Since I am just in amassing mode for my student bike program it makes me jump on some bargains. I have sold nothing so far in my bike collection mode, but I am thinking of posting a few things here to part out to offset my expenditures a bit and add to the program budget. |
Rule one is don't mess with cheap dual suspension mountain bikes.
I don't flip much any more but when I did I concentrated on bikes that I could pick up for less than $50, put maybe $50-100 into, and sell for a price that I cleared at least $100. As I consider it my continuing education, I consider my labor time to be free. |
Originally Posted by cb400bill
(Post 21923404)
Rule one is don't mess with cheap dual suspension mountain bikes.
I don't flip much any more but when I did I concentrated on bikes that I could pick up for less than $50, put maybe $50-100 into, and sell for a price that I cleared at least $100. As consider it my continuing education, I consider my labor time to free. luckily it’s a hobby. Unluckily I have no real space. |
Thanks for the comments, though my real question was not so much about how to be successful flipping bikes, rather more what cb400bill was getting at: in my case I wasn't flipping anyway so the bike itself was essentially free, but replacing consumables (and being frugal about it) still put the minimal selling price above $100, no matter how crappy the original bike was. Even a better quality bike (I got a free Raleigh Record once and refurb'd it at my cost for a friend to use) would still need at least $100 in parts (using prices around here) but wouldn't sell for much more in good shape....Bill's numbers indicate a flipped bike that sells for less than $100-$150 is not going to happen, and doing the math more likely would have to sell for over $200. Around here you can still get plenty of decent bikes for that kind of money if you are looking for fairly low end. And iab is right on the money: I put roughly 5 hours of time into the subject bike (mostly dealing with super low end V-brakes and getting them to work reasonably well - who would have thought two pieces of metal that *look* similar to decent v-brakes could be so awful?); I had to replace a couple of spokes which in turn required the right tools and a lot of ooomph getting the freewheel loose.....then truing the wheels, and so on.....
I had fun and every time you do something mechanical you improve your skills and learn something - so I am not grumbling. But when I see bikes that are being flipped I rarely see them at the price range that would cover basic consumables let alone labour - I can only assume that few of them get proper attention before the sale! Edit: and just to be clear - I wouldn't normally have touched that bike - but it was a favour for a friend and I did make it clear that the bike was not a quality unit! |
I collect parts and consumables more than I collect bikes. I’m friends with a bike shop owner and he orders me things like cables, housings and tubes at his cost. And I have a friend that has more parts and bikes than 3 bike shops put together. I spend a lot of time looking at ads for bikes. I save the ones I’m interested in to see what they are selling for to keep up on prices.
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I buy what seem like good deals and collect them , sometimes sell them so I can buy more of them more so than flip them. For me the easiest flips are newer comfort bikes that might need a tube, etc and are underpriced (much harder to find this past year with the bike boom). If I can't make $100, I don't mess with it. The real flipper in my area beats me to a lot of those deals.
The second type of flip I will do is buy nicer/higher end 80's vintage and resell the complete bike or frame Ebay. While shipping full bikes is a pain, this is the only way to get the real money on the nicer vintage in my areas. Its also fun for me, when I frames only on nice lower value bikes, I have quite a cache of parts for my personal builds. I often end up with nice newer groupsets/wheelsets/etc to use on my nice older frames. but if you buy very many new parts, I agree its nearly impossible to make any money. |
My master plan is to get access to a QBP acount. The difference between retail and wholesale consumables looks like it would be half the profit for most bikes.
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I inadvertently became a flipper of a few bikes last summer.
I was looking for a decent Miele and went through a few looking for the right set of components and my size. Basically I ended up making a few bucks on two of them by buying the bike out of the city, where demand was low and prices negotiable. I was able to list them for a high price after fixing them up and polishing up the finish. With COVID driving high demand they went within a couple weeks at my asking price. I would not recommend this as a way to make money. It’s more of a hobby that you might make money at in the right conditions. So yeah, buy low, sell high. |
I don't buy anymore unless it's has some sort of esoteric appeal to me AND has a part or combination of parts that can sell for what I'm paying for the bike. I used to buy any "decent" bike if it was under $25, just for the parts if nothing else. Build the parts buckets.
Example: Just picked up a pink Schwinn Supersport. It had been hanging for at least a decade, the seller wanted $100. The majority of the drivetrain had been upgraded to DuraAce. I should be able to recoup my initial investment selling the duraace and replacing it with 105 I have in my parts buckets. Now the bike is "free" and I can sell it or keep since it's my size. To flip, you have to buy your consumables as cheaply as possilbe. See a deal on cables, housing, tires, tubes, pedals, grips, or saddles; be prepared to buy extras for the flips. A few years ago, there were crazy deals to be had at "A". I bought a couple completes for ridiculously low prices and parted them out as well as back stocked myself with cheap reels of housing. I probably dropped ~$1k that summer, but I made back almost all of it already and I'm still sitting on 2 frames and some parts to move. |
I've lost my ass on every single bike I've sold. It's not a fun game for me.
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1. Use the cheapest galvanized cables you can find, bought in bulk from China
2. Use the cheapest brake housing for everything, including SIS shifters. Compressionless? Never heard of it 3. Don’t bother changing brake pads, even if the current ones could hammer nails 4. Don’t bother opening hubs, even if they sound like dry sanding with 80 grit paper 5. If the bike has an asymmetric spindle, ignore its orientation when you “service” the bottom bracket and don’t stop to wonder why the small ring is rubbing the chain stay 6. Claim the bike is “completely gone through” in your CL ad Some tips based on my experience with flippers |
It really helps to be in a great bike market. Free and cheap bikes are your friends. I can usually find serviceable parts on them (brake levers, derailleurs, hardware, sometimes saddles, and often alloy wheels...etc). Don’t be afraid to cobble together single speeds and fixies from cheap frames. It seems around here more people prefer that anyway. I still often need to buy rubber, bar tape or grips, cables, housing, and brake pads. I avoid most low end mountain bikes with suspension. I’ve learned to deal with cotter pins and 1 piece cranksets so I can service bottom brackets. At first I didn’t make much money and anything I made went straight into buying tools. I talk about all of the work I’ve done in my ads and enough people see the value of a properly serviced bike. Low end 80s Schwinns and Raleigh’s in good condition sell better than anything else I have. Early low end Raleigh Techniums are often available for cheap and will fetch $250-$300 when refurbished. Peugeot UO8s are great too. Low end French bikes are too big of a pain for most people to deal with but I have the proper tools. Timing and location and patience are everything. Here in Minneapolis I sell out of bikes completely in the early spring. None of this would make me a living but I enjoy it. The high end bikes that come along are a completely different game. I rarely make money at that game and I’ve got a nice collection of my own because of it.
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Buy the right bike at the right price. There are very many bikes that just arent worth it. This is rule number one. Midrange quality or better. Complete road bikes are my best purchases. No rust, no need of repaint. Just old, cheap, dirty, dried out but salvageable.
Rule number 2: see 1. Rule number 3: see 1 and 2. Don't count your time. My bike time averages recently: 2 hours cleaning and adjusting a modern bike that didnt need a complete strip. Minimum 5 hours for a bike that needs a full rebuild (I was working as fast as I could and timing), closer to 10 hours depending on original condition. These times don't including looking at ads or driving time. I like doing it. It gives me pleasure to rebuild bikes and I get to ride and experience a lot of different components and frames. Making a few bucks or borrowing a couple parts for your keepers is a benefit but I could work some OT at work and come out way, way ahead instead. I do it because I like it. Buy consumables in bulk. I buy good quality stuff (stainless cables, lined housings, nice brake pads, decent bar tape, a collection of new inexpensive saddles, brand name chains, tires, etc. But when I need them I buy lots so my per unit cost is low. Figure out where to buy what. Unless someone were paying me to work on specific aspects of a low end dual suspension mountain bike there just isnt any profit. |
How do I make money flipping. I market well. I buy well. I do good work. And I know what the heck I am doing but it has taken many years of buying and selling to get to the point that I am at now.
Given to me for free, I could have made this old Torpado roadworthy and safe to ride for the price of tires and cables. Where I live, in Thunder Bay, Ontario, a local bike shop ordered me a set of Specialized gumwalls 700c x 28. Cost me around fifty bucks plus 15% sales tax less 15% (my store discount). So, $50.00 CAD for tires and another $20.00 for cables and new casings. Total, roughly $70.00 CAD... https://cimg0.ibsrv.net/gimg/bikefor...a9ec29192f.jpg But I wanted to go all the way to get this... https://cimg7.ibsrv.net/gimg/bikefor...8dcf0a0e74.jpg By the time I got there and still waiting for tires (end of March), this is what I have invested... Tires and cables - $70.00 Paint and supplies - $80.00 (I prefer to paint my bikes with a brush) Art - $60,00 Handlebar tape - $30.00 CAD Wee odds and ends - $20.00 TOTAL - $260.00 CAD I have already been offer close to four times what I have invested. Might sell it - might not. I kinda like this old lady... https://cimg2.ibsrv.net/gimg/bikefor...6167024ba5.jpg |
The only way to get any return is buy very low on a ready to ride bike or do a "DKO" flip
Once parts and labor come into the equation, you can forget about "making" a profit. Exhibit A I found a 1987 Schwinn Premis in the alley. No wheels, seat/post, rear brake caliper was busted. Otherwise, decent shape. Should be a goldmine. https://live.staticflickr.com/65535/...ae87dc6d_h.jpg Here's what I ended up spending on this "free" bike:
Stuff from the boneyard
Here's the finished product. Spent around $60 on parts and 6 hours on labor/parts sourcing. Sold it for $250, so $30 per-hour for the effort. Easier ways to make a buck, and this number would have gone way down if I didn't have a lot of parts on hand. More of a labor of love, than a money making effort. Feel like I saved this one from the dump. https://live.staticflickr.com/65535/...12eb560d_k.jpg |
Flipping bikes for profit seems like a tough racket.
I was considering trying my hand at it when I got furloughed but am glad I came to my senses. Was actually liquidating my comic book collection to raise money for a small bike shop when I realized peddling comics might be way more lucrative. |
Originally Posted by bark_eater
(Post 21923516)
My master plan is to get access to a QBP acount. The difference between retail and wholesale consumables looks like it would be half the profit for most bikes.
Maybe next year QBP will actually have most of their catalog in stock. Right now the cupboards are very bare. |
Like many endeavours, don't count your hours. Do it cuz you like it or forget about it.
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Basic old bike economics: buy high, sell low.
Q. How do you end up with a million dollars? A. Start with three million and open a bike shop. |
Originally Posted by gugie
(Post 21923659)
I believe you'll need "bike shop insurance" to buy directly from them. If you're planning on having a shop let you use theirs, good luck!
Maybe next year QBP will actually have most of their catalog in stock. Right now the cupboards are very bare. |
I will say one thing: Like valuation of bikes, whether you can make any money depends more on environmental factors than anything.
For example, the market went to hell in my area when rental bikes and scooters showed up. . At that point, I stopped trying, it was fruitless, everyone would rather rent a bike maintenance-free than buy their own. Bikes I'd list would languish for weeks before getting a 1st legitimate inquiry, even at what many would consider "bargain" prices here on BF. When the pandemic arrived and nobody wanted to share anything, a significant part of the population suddenly needed a machine to exercise, or they found confidence riding on the road due to reduced vehicular traffic, values climbed again. Sure, there's the other obvious stuff - a significant parts stash, buying generic "good enough" consumables and/or buying in bulk when deals come up, and the most important "buy low, sell high" Second of all ...
Originally Posted by sloar
(Post 21923383)
To make any money at flipping bikes you constantly have to be searching classified ads ... Plus having parts and consumables on hand helps ... I don’t buy to sell, everything I buy is my size, I just find something else I like and recycle my profits
Originally Posted by iab
(Post 21923397)
What's your labor rate?
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