One of the most profitable ways to work in the wholesale industry is by flipping electronics. But, before you can start doing this, you’ll need to answer a very important question: Should you learn how to flip phones or leave it to someone else?
To answer this question, it’s important to look at a few factors. By doing this, you’ll know how your business needs to proceed. We’re going to look at the advantages and disadvantages of flipping electronics by yourself or hiring someone else to do it.
Here’s how to determine whether you should flip phones in-house or partner with an electronics refurbisher.
Why You Should Learn How to Refurbish Electronics
First, we’re going to take a look at the positives of refurbishing electronics on your own. There are more reasons to start flipping electronics than you might think. Here are a few reasons why flipping or refurbishing electronics by yourself is beneficial.
Having Another Revenue Stream (Making More Money)
In any industry, it’s important to sell goods for more than you buy them for. However, this is sometimes harder than it seems. For example, it would be hard to resell electronics for profit if you’re buying new devices from retailers. In this situation, if you’re lucky, you might break even or make a few extra dollars.
Another option is to purchase used devices and resell them. Doing this can be a great way to maintain a profitable business. As you do this, you’ll come across used electronics with various issues. You also have the perfect way to buy items at low prices, flip them, and get those resale profits you’re looking for.
If you sell these devices as they are, they might not command great resale values. If you can flip electronics, or know someone who does, you don’t have to avoid broken or damaged electronics. And, as other sellers steer clear of broken or defective lots, you have much less competition.
Amazing Profit Margins
As you continue managing your business, it’s a must to keep a close eye on profit margins. To put it another way, profit margins show you how much money your business is making. One way to have excellent profit margins is by buying your goods for as cheap as possible.
When it comes to electronics, it’s hard to find anything cheaper than broken items. Sellers price broken items lower than used or new ones because they know these devices need some work. In most cases, the average consumer isn’t going to want electronics that need work they don’t know how to perform.
This is where you enter the picture, eager to start repairing these items. Sure, it takes a little work to find and start buying broken electronics. But, after the work is complete, you’re getting a great return on your initial investment and making money from repaired electronics.
A Skill That’s Easy to Scale
A key factor in owning a business is being able to watch it grow. When a business can easily grow, the potential for it to make more profit also increases. With that in mind, learning how to flip phones can give you that type of business you’re after.
As you’re starting out, try to focus on learning how to resolve less-technical electronics problems. After you’re comfortable with more simple repairs, you can begin working your way up to solving more complicated electronics issues. The more skills you gain, the more potential money your business can earn.
Doing Something You Enjoy
People have all kinds of hobbies they enjoy. However, it’s almost impossible to know if you like something without trying it. So, it’s possible for you to find that flipping electronics hardly feels like work at all. For most people, this feeling of joy only grows as their repairing skills progress.
Drawbacks of Refurbishing Electronics on Your Own
While flipping electronics has many advantages, there are also drawbacks to be aware of. By taking time to learn about these potential drawbacks, none of them will take you by surprise in the future. Here are a few disadvantages of flipping electronics in-house or by yourself.
Time Investment
Every new skill takes time to learn. Considering that, make sure you have time available to learn how to start refurbishing electronics you’re interested in reselling. While you might think that flipping electronics takes years to learn, this is rarely the case. It’s still possible to learn how to flip these devices while still buying and selling electronics for a living.
Yes, you’ll have to spend time and effort learning how to repair electronics. But, depending on what types of electronics you’re working on, it’s possible to learn the basics in a few weeks or months.
Generally speaking, more complicated electronics like laptops might require more extensive repairs than a smartphone or tablet.
Expect to Break a Few Devices
If you’re going to start flipping electronics, you’ll need devices to begin refurbishing. The good news is you can find a wide range of electronics in various states of disrepair. What’s even better is that these devices typically cost far less than new or used ones.
With that said, part of learning how to flip phones (or any other electronic device) means breaking or failing to repair them. Don’t let this discourage you. Instead, use failed repairs as learning experiences. As your skills increase, you’ll soon be flipping all sorts of devices successfully.
Why Partner With an Electronics Refurbishing Business
Not everyone feels comfortable tinkering with electronics. Other people might not want to flip electronics because they’re not interested in this activity. If you don’t want to learn how to flip phones, there’s always the option of partnering with an electronics refurbisher. Here are a few reasons why this can be a great way to grow your wholesale electronics business.
Saving Time
One of the main benefits of partnering with an electronics refurbisher is saving time. Every new skill takes time to learn. For some business owners, setting aside time to learn how to repair electronics isn’t an option.
Another issue has to do with how wholesalers buy electronics. Wholesalers tend to buy electronics in large quantities. If you want to start flipping such a large amount of electronics, it could take quite a bit of time.
If you don’t have this kind of time to spare, repairing electronics by yourself might start setting your business back. By partnering with a professional refurbisher, you won’t have to worry about this problem.
Not Wasting Money on Failed Repairs
As mentioned earlier, you can’t learn how to flip electronics without test devices to work on. Sometimes, people only need a few test devices to work with before they feel comfortable enough to start flipping items for customers. However, that’s not always the case.
We all have different skills, and some people are more skilled at repairing electronics than others. If your attempts at flipping electronics either become too stressful or too expensive, it’s time to contact an electronics refurbisher. By doing this, you can relax and avoid wasting more money on test devices.
Potential Insider Tips for Flipping Electronics
Another great reason to partner with an electronics refurbisher is to gain insights you wouldn’t have otherwise known about. Depending on who you partner with, it’s possible for this person or company to give you valuable tips over time.
By having a new business partner, you potentially have someone to help your company get better. If you’re new to flipping electronics, partnering with a refurbisher could provide you with lots of business insight.
Disadvantages of Partnering With a Refurbishment Company
We’re now going to wrap things up but taking a quick look at the disadvantages of partnering with an electronics refurbisher. Here are a couple of reasons why partnering with a refurbishment company might not be the best option for your business.
Fewer Profits
As your business grows, it becomes tough to take care of everything by yourself. To save yourself the time it takes to flip electronics, you’ll need to partner with someone that knows how to do this. Although, by saving yourself time, it is going to affect your profit margins.
Take time to weigh the costs of working with a refurbisher versus the profit you’ll make from selling refurbished electronics. It hurts watching your cut of business profits lower, but having more devices to work with should offset these costs.
Risk of Finding an Unreliable Partner
Throughout life, every new partnership comes with a degree of risk. Considering that, you’ll need to assume a bit of risk when working with a refurbisher for the first time. Therefore, there’s always some degree of risk that any business partnership won’t work out.
If you want to avoid lots of risks, see if a refurbisher you’re interested in working with will complete a small batch order first. This gives the refurbisher a new client to work with, and you’ll soon see if you’re working with a reputable partner. Best of all, if things don’t go well, you’re not losing a lot of money.
However, don’t let the thought of an unreliable partnership scare you from finding an electronics refurbisher. Fortunately, there are far more trustworthy refurbishers who love flipping electronics than there are scammers.
For another way to stay safe for scammers, become a Trade-In Tech member. Our verification system, which we cover in-depth below, helps keep scammers away from our valued members.
Where Can I Find Electronics Refurbishers?
If you want to partner with an electronics refurbisher or refurbishment company, you’ll need to know where to find them. Fortunately, we have a few options to help you find the refurbishers you’re looking for.
Find Trustworthy Electronics Refurbishers on Trade-In Tech
The best way to find electronics refurbishers fast is by joining Trade-In Tech. By gaining access to our global network of electronics refurbishers and refurbishment companies, you won’t have to worry about searching for repair professionals in your area.
Instead of wasting hours combing through online wholesale directories or wearing out your fingers dialing numbers, you’re connected to our networks of refurbishers instantly. Also, setting up your Trade-In Tech account is incredibly easy. Our wholesale social platform also makes finding and messaging these professionals a breeze.
And, to keep our members safe, we require that each Trade-In Tech member provides professional references that we verify. By creating a tight-knit community of electronics wholesalers and refurbishers, we offer ways to keep out scammers that other platforms don’t have.
Look for Local Refurbishment Companies
Another option is to look for local refurbishment companies. Depending on where you live, this might not be as easy as you think. There’s also the issue of time and money. If your nearest refurbishment company is 150 miles away, you’ll need to dedicate time to travel to this location. Along the way, you’ll also be spending a decent amount of money to keep your vehicle fueled.
You’ll also want to make sure that any refurbishers you’re speaking with can handle the number of devices you need to be refurbished. Some local refurbishment companies might only work with consumers who bring in one or a few devices at a time.
If you need screen replacements for 75 Samsung Galaxy 10 smartphones each week, a smaller local refurbisher might not be able to keep up.
Taking Your Chances Online
There’s also the option of finding a refurbishment company through online searches. However, you’ll want to be careful when doing this. These days, it’s easy for companies with bad intentions to set up websites that are convincing. That’s not to say that trustworthy refurbishment websites aren’t out there.
With this method, you’re going to be spending quite a bit of time searching through websites. You might also run into websites with outdated contact information if these companies are still in existence. All of this only leads to wasted time, which is best to avoid as you’re trying to run your business.