Have you ever tried to sell your kid’s sports gear on a garage sale? I bet you found it to be nearly impossible! I mean, what are the odds that your kid’s helmet size is exactly the same as the nearby neighbor that strolled over to your garage sale? Slim to none. You probably purchased that helmet for at least $90 brand new, and after your kid grows out of it (or when he quits the team after one practice…), you’re happy to get $5 for it! That is definitely not the position you want to put yourself in.
Do you know how the rich make their money? They solve problems for the masses. Chances are that there are plenty of other moms and dads that are in your exact situation. They hate paying top dollar for their kid’s sports gear, but there doesn’t seem to be another option. If you’d like to create a passive income and make a boat-load of money doing it, this is one area that you might want to consider: sports equipment rentals.
Sport Equipment Turned to Gold
There are probably close to a hundred sports equipment items that we could list right now, but let’s focus on the high-turnover items of little kids:
- football helmets
- football pads
- cleats (football, soccer, baseball)
- baseball gloves
I guarantee that parents in your area are actively looking for at least one of these items right now. The buying and selling of sports equipment is in high demand everywhere, and the profits on these sales could be 200% or more!
Buy Used and Sell
When I’m talking about selling sports equipment, I don’t mean new stuff. Here’s the business model. Find these items on your local garage sale, buy them for cheap (because parents are just happy to get something for them), and then sell them out of your garage to all of your neighbors. They don’t have the time to hunt through every single garage sale, so their happy to pay a little extra from your one-stop-shop. After all, they’re still saving $30 compared to what they would have paid for at the retail sporting goods store!
So how big is the market for a business like this? If your city has a population of 20,000 people, I’d say that you could easily sell 500 items per year.
Here are the averages prices (cost and resale value) for the four items we are focusing on:
- football helmet: $25 cost, $50 resale
- football pads: $10 used, $20 resale
- cleats: $10 used, $20 resale
- baseball glove: $5 used, $10 resale
Since the sellers of these used items just want to get rid of them, we’re able to buy those helmets and gloves for half of what we can sell them for. If we figure we can sell 500 items per year, and each item costs an average of $20, that means we’ll have $10,000 tied up in inventory expenses.
Well this is pretty simple. 500 units sold at double the cost means that our income will be $20,000 each year.
That means we could earn $10,000 in a year just by buying and reselling sporting equipment!
So How Can I Make a Passive Income
You might read this and think, “Ok… how in the world is this considered passive? I mean, you have to scour every single garage sale in your area which takes time, and then you have to take the time to sell it! There doesn’t seem to be any income that’s passive in this scenario.” Well, if you plan to do all of the work yourself, then yes, this is true. But, there are some pretty crafty people out there that could do most of this work for you at a very low cost.
Finding the garage sales and ads are no big deal. All you have to do is spend 1 hour a week looking at the paper and craigslist and you’ll know about all of the items that are for sale in your area.
The rest of the operation is completely passive. All you have to do is hire someone that would love to make some extra money each month (maybe $300+). Give them a list of the addresses and the items that you’ve found and have them pick them up and pay for them. Then, if they sell your equipment, pay them 50% of the profits. If they make you a profit of $1,000 each month, they’ll earn themselves $500! By doing this, you’ll still earn $5,000 in the year and you’ll only have to work 1 hour a week!
What do you think about this plan? Would you ever consider selling sports gear for passive income?