My friend just recently picked up a brand new Xbox Series X 2020 model for $530 after days of hunting.
He is currently reselling The XBOX Series X in 2 ways.
- Another friend offered more than $750 for it.
- He’s doing a raffle open to a max of 30 people, $40 entry per person for a total revenue of $1200.
Whichever one sells first.
I assume if he sells it to the guy for $750, he’ll give everyone in the raffle their money back.
Profit Margin Selling The New Xbox Seris X
It costs $500, after tax it was $530 in New Jersey.
Not factoring in gas to drive there, time to wait in line, if he sells it for $750 that’s a profit margin of $750 – $530 = $220.
$220 profit / $530 input cost = 41.5% profit margin.
Not too shabby.
If he doesn’t sell it to the one friend, and instead opts for the raffle model, it would be a profit of $1200 – $530 = $670.
$670 profit / $530 input cost = 126.4% profit margin.
Here’s Where You Don’t Risk Anything To Make This Profit
Because you’ll be getting the XBOX Series X from mainly big famous retailers like Target, Walmart, or Best Buy, the returns ARE FREE!
Target, for example, lets you return tech unopened with a receipt within 30, 60, sometimes 90 days.
So if within a month you don’t sell your XBOX Series X, you can easily get your $530 back.
It’s literally NO RISK.
Not to mention, if you can’t sell to your friends, you can sell on Ebay or other resale websites.
How Do I Know It’s Really NO RISK?
How do I know this works?
Because my friend has a friend who already sold four XBOX series X’s in the past week.
FOUR.
If he sold each one for $800, that’s a profit of almost $300 each, for a total profit of $1200.
$1200 profit in 1 week isn’t too bad considering if they don’t sell, you could return them all.
If you do this for 2 weeks, and make about $2000 to $2400, that is not chump change for someone trying to get to financial independence by investing as much as he can into Vanguard’s S&P500 index mutual fund.
Can This Apply To Reselling The PLAYSTATION 5 Too?
It can.
But from what I’ve noticed, the PS5 is definitely harder to get because it seems demand for them is higher than the XBOX Series X.
That’s why, my friend who is an avid Playstation fanatic, got the XBOX Series X to resell and not play with.
Because he doesn’t care for XBOX products lol.
What Do You Think?
Does this seem like a valid momentary side-hustle, yes or no?
What do you think about the profit margins?
Do you think it’s truly NO RISK? Or are there risks associated with this?
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Read: “Should You Only Do Side-Hustles Aligned With Your Values?” Daily Financial Thoughts #3
