Sunday, July 04, 2004

Other People's Money and Garage Sales

For a couple of months now, I have been reading the assortment of books (mostly business and investment books) I have acquired from garage sales in the Toronto area. It is really amazing how many books people will buy for $50 or more, and never even crack the spine on them.

A few of the books I read talk about the concept of OPM (Other People's Money) and it is a great concept. Consider this:

Someone buys a book (say Java 2 for Dummies) for $50 bucks.
They sell it to a used book store for ($5)
The used book store sells it for ($10)
Someone else sells it at a garage sale for $1. (or in my case $0.25)
I buy it from them.

I just used other people's money to purchase a $50 book for $0.25. Not a bad deal, eh? What happens when I sell that book to a used book store for $5 and repeat the cycle? What about taking all these books and putting your entire library on Amazon.com.

No wonder books are one of the top selling items on the internet.




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