Cash4MacBooks: Apple MacBook, iPhone, iPad Re-Ecommerce Business
Boston Financial District Based: Est. $300,000+ Revenues
First established in 2009, Cash4MacBooks has seen exponential growth over the past 12 months as we continue to grow our presence in the re-ecommerce field. The Cash4MacBooks business model entails purchasing Apple MacBooks, iPhones, and iPads via our website. The website provides clients with an instant quote for how much we will pay for their device based on a number of variables including model, cosmetic condition, processor speed, and issues (if any). Once the client has confirmed their price quote, we provide them with a prepaid shipping label or offer to add an additional $15 on top of their original price quote if they ship themselves using a carrier of their choice.
Once the device has been received at our facility, we thoroughly look over the computer to make sure the computer we received matches what was stated in the Order Summary. All components are tested to ensure functionality. Once everything checks out, clients are reimbursed via one of our three reimbursement options: PayPal, Western Union, or check.
We have recently changed our business model from selling whole working computers to a mixture of selling whole computers and parting out devices which cannot be fixed in a two week time frame. Our primary outlet for selling working devices is eBay, and our primary outlet for selling parts is through relationships with wholesale Apple parts resellers. We have found this to be a good business model for since the amount of capital required to reimburse for incoming computers is low as subsidized by a constant cash flow from selling parts, resulting in a perpetual sale of inventory. Some of the devices (MacBooks in particular) we are able to fix in house, but more than half of the liquid damaged logic boards are sent out to a 3rd party component level repair company with whom we have a strong relationship with.
The company was founded in 2009 in New York, and I purchased it in from the previous owners in December of 2013 and relocated it to Boston, MA. After buying Cash4MacBooks, I was left with a mere $10,000 in capital that went towards advertising, reimbursements, salary, and utilities. The below financial information shows evidence of growth and profitability with just $10,000 in start-up capital:
From 2/1/14- 8/31/14, Cash4MacBooks had sales of $173,426.00 with an estimated inventory of 26,999.00 based on an 8/31/14 inventory assessment. It should also be noted that Month-Over-Month sales have been increasing each month from $11,720 in February 2014 to $28,549 in August 2014. The increase in sales are attributed to alterations in our marketing campaign, price quote algorithm, and establishing new relationships with schools and businesses who sell devices to us in bulk.
After fees, advertising expenses, utilities, parts, 3rd party repair group expenses, shipping, rent, reimbursements, and all other expenses, total profits before taxes equaled $65,498. Again, this is while the business was growing and only accounts for the time period between 2/1/14 and 8/31/14.