The Easiest Way To Boost Your ROI 10%+

Let’s improve your ROI by 10% immediately.  You can’t afford to not follow this advice.  You’re just not good enough, and neither am I, to constantly throw away money.

Over the past few weeks I’ve been hitting topics like How You Can Buy and Sell on Amazon and Why I Prefer Online Arbitrage.  If you haven’t made your way through those and you’re new to the whole online selling game, then make sure to have a look.  Today I want to stay on the topic of buying products online to resell for profit, but I want to look at one simple way that will immediately boost your ROI by 10% or more.

 

roi


 

Enter, Raise.com where you can buy gift cards for stores at a discount.  This works for brick and mortar stores and plastic gift cards (Most people who know me know that I love Big Lots!), but it’s particularly useful for Online Arbitrage because you can get a virtual gift card almost immediately, rather than waiting for a card to be shipped to you.  When you can immediately take 3-15% off of the total cost of your purchase, you NEED to do it.  How many times have you had an item that you thought would be good, but ended up having to break even?  What if those break evens were actually +10%?  What if your 50% ROI turned into 60%?  How much would that mean for you annually?  (TIP: If you’re part of the email lists through 25DollarListClub, then we include links to all of the relevant Raise gift cards with each post.)


 

To illustrate the point, let me show you two examples.  First on the low side of the spectrum: saving 2.8% from WalMart; and then the high side of the spectrum: saving 12.3% from Toys r Us.

Without Discounted Gift Card

Purchase Price: $9.96

Sale Price: $19.71

Profit: $4.05

ROI: 40.66%

With Discounted Gift Card

Purchase Price: $9.66

Sale Price: $19.71

Profit: $4.35

ROI: 45.03%

 

So, in this example, we’re increasing our ROI by 5% by decreasing our costs 2.8%.  This is just free money.  But this is the extreme low end of the spectrum, as almost all stores have better rates than Walmart.  Let’s try a Toys r Us example.

Without Discounted Gift Card

Purchase Price: $2.99

Sale Price: $12.75

Profit: $3.69

ROI: 123.4%

With Discounted Gift Card

Purchase Price: $2.62

Sale Price: $12.75

Profit: $4.06

ROI: 155%


Now you can see how this would add up quickly.  We just increased our ROI on this item from an already good 123% to an astounding 150%.  This is the magic of discounted gift cards.  You aren’t just saving money, but you’re increasing your ROI, which is the name of the game in Arbitrage.

 

In July, I spent approximately $4000 on inventory.  For some of you, that may seem like an astronomical number.  For others of you, you know that this isn’t much at all.  In Q4, I fully expect to have several months in a row where I’m spending 5-figures.  But, an average of 5% off is an extra $200 in my pocket instead of WalMart’s or BigLot’s or anywhere else.  And, since I have some taxes due tomorrow, I’ll take every penny I can get.  I hope you will also.   Looks like they still have a discount for new members, so might as well take the free $5 while you’re at it.

Raise.com

Raise.comraise

3 thoughts on “The Easiest Way To Boost Your ROI 10%+

  • July 31, 2015 at 1:33 pm
    Permalink

    My first attempt to buy a gift card from Raise was a flop. Kohl’s code didn’t work…I spent 3 hours on the phone with them trying to place an order…then had to wait 8 days for a refund from Raise.com. I guess it’s hit or miss.

    Reply
    • July 31, 2015 at 3:39 pm
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      Sue,
      That can happen sometimes when getting discount cards. One of the reasons I suggest Raise and NOT some of the other sites is because Raise is really good at handling this as opposed to some places where getting ripped off is a legitimate concern.

      Stefanie,
      We should get a tax expert in here, but I’m pretty sure the way I have it set up is an entry for income that is the difference between the Purchase Price and the Face Value.

      Reply
  • July 31, 2015 at 2:56 pm
    Permalink

    How do you keep track of Gift Cards for Cost of Goods in your accounting?

    Reply

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