Profit - it starts with your buying price

So many people think profit is determined by what you sell your item at.

I feel different. Profit is defined by what you buy your item at.

Your selling price has already been determined for you. You have little control over it. Take laptops for example. People spend easily close to $1500 for one. They also spend only $400 for one. Despite this, the general price range is there, and you have to work with it.

So...if you sell laptops, are you going to pay $1400 to sell one at $1500? Or would you rather buy it at $800?

OK, you may ask "what about antiques? Their prices aren't predetermined!" Well, for the most part they are. Otherwise, there would not be a gazillion books out there pretending to be price guides for antiques and collectibles. If you have an extremely rare piece, I would agree the predetermined part might not hold true. But can I see a show of hands out there of people who have such pieces and can't get any info at all on what it might be worth?

So...your profit is based on what you buy it at.

OK...so...what should your profit margin be? Patience, grasshopper. Don't jump the gun.