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A Critical Rule For Higher Profits

A critical rule for higher profits 

“You know what that guy’s problem is?

“No, what?” I asked.

Mr. W replied, “He bought that equipment, but he didn’t have any way to get it home. So he had to spend any profit he might have made renting the truck and trailer. He’ll never get his money back, because he can’t sell it at a high enough price.”

We were on a military base in central California picking up a couple of ambulances Mr. W bought in an online auction.

When I took a closer look at the guy he was talking about, I instantly got his meaning.

The other guy, we’ll call him Bob, was driving a rental truck pulling a rental trailer.

Some quick math told me he’d likely spent more on the rentals than he did on the equipment he bought.

Not the best plan if you want to make a profit.

He didn’t know what Mr. W knew.

You’ve got to have your foundation set up before you get into business.

And you always look for the least expensive way to do what you want done.

Bob probably would have saved money hiring Mr. W to haul that stuff for him.

But I’d bet he never even thought of it.

Bob’s the kind of guy that thinks he’s got to do it all himself.

Bob wastes lots of money because he doesn’t take the time to check out better ways to do things.

If Bob ever wants to buy more equipment, he’ll do the same thing.

How many times can he go through the process before he realizes he’s going broke?

Only time will tell.

Unless Bob finds a better way, his business is doomed.

When he decides to quit, he’ll put all of his equipment online at fire sale prices.

That’s when Mr. W will buy it all and gain the profit that should have been Bob’s.

Why can he pull it off?

Because he can pick up the equipment he buys and transport it to his holding area.

He owns the trucks and trailers.

He owns the land for storage.

He has the tools and equipment necessary to fix anything and get it ready for sale.

Posting it online is dang near free.

When you own your means of earning, you get into profit much faster.

And the margins are far larger.

The same is true for your online business.

When you own your platform, you can’t get banned.

If you own the storage for your valuable content, you can’t be shut down.

Doing things cheaply, you’ll make more profit per sale.

That’s how you crush your competition.

I’ve learned a lot about how to run a business from Mr. W.

He’s picked up a few things from me, too.

One thing we’ve both learned is this:

If you want to have a fat bank balance, figure out how to do things with less money.

Here’s how you do it online

This article was published on 04.03.2019 by Dave Kotecki
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