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Flipping isn't always about the margin

Discussion in 'Lets Flip General' started by tagtwin, Jan 17, 2016.

  1. So obviously if an item has a large margin its going to be good to flip but in terms of gp/hour it can be more efficient to use a smaller margin.

    For example if I buy 1000 of a for 90 and sell them for 110. This round trip takes 10 minutes to complete and gains 20k.

    But, if I buy 1000 of a for 93 and sell them for 107, the round trip may only take 5 minutes, gaining 14k.

    This is obviously less money gained but it was done in half the time.

    So, with the 5 minutes that was saved a similar flip can be done, say earning another 10k. This means that in the 10 mins, 24k was made instead of the 20k from the greater margins.

    This is only really useful when you have a smaller cash stack and need the flips quickly to make money or you have run out of slots in the GE.
  2. dint think of this. nice. will take it into accont next time i merch
  3. I'm usually into smaller margin items as well for simple fact that there is less risk involved. if you flip a ton of one thing that sells very quickly, it can still be a lucrative profit even though the margin is so much less than big ticket items.
  4. Very true, most focus on the "profit" and fail to take into account the opportunity cost of tying up their cash.
  5. Very true, I prefer to do it this way myself
  6. I agree. Been doing it for a while now
  7. This is a good way of thinking. Thanks buddy.
  8. This is a good key point to think of, because something that sells quickly for any profit is usually a good bet.
  9. i understand what your saying but i like to think of it this way instead. Making 5% margin on a cheap item isnt as good as making 5% on more expensive items. obviously this is more applicable when you have more money because when speaking of limits, the profit on a 13k 4hr limit of arrows is nowhere near as good as a 5% profit on a third age flip. were talking 5% of 100m vs 5% of 1m. your not always getting 5% on a 3rd age flip, but overall its more.
  10. I need to start using this method more often thanks!
  11. whats athe best way to find these margins within itemds
  12. Think of an item you want to flip. Buy it for way above then sell it for way below. Those are the margins. You buy them at what you sold it for and sell them at what you brought them for
  13. this helps me so much! never thought about it that way.. thank you!
  14. so maybe you can go for a smaller margin, but you have to make sure that it's high sale rate... what are good items?
  15. it just depends on you want it fast or slow .
  16. Mmmm, if I'm skilling at GE i'll do smaller margin flips, and sometimes have a large margin flip or two in a spare slot.
    If I'm not skilling at GE i will definitely use the large margin flips, particularly on items that I know to be decent, that way I can hoard them for a couple days and dump em all ;)

    Regardless whats 5k more profit if you have to click more #lazy
  17. This is a good thing to remember when doing high volume items that are cheap, but this idea is kinda bad when you spend your entire cashstack on one item and getting only 20k profit from one flip. With higher value items that are not traded that often you have to stretch the margin by a lot to make the flip even worth doing.

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