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“On average I made $250/bike, and I could move several of them a week. It was fun!”
Did you know there was such a thing as the pandemic Peloton? This refers to the many, many people who purchased Pelotons (and lots of other workout equipment) during the early days of the pandemic, especially in places that had extended lockdowns or other hardcore restrictions.
Naturally, some people continued to work out every day even as things loosened up, but there were a lot of Pelotons just sitting around for a while, even as demand continued to be high.
Today's caller took advantage of this! He's got a story for us, and he's also wondering how to figure out what comes next.
I started buying and reselling Pelotons during the pandemic, and it worked really well. There was a time when people would pay higher than retail, even for a used bike. Then of course, the price went in the other direction when there were a lot more sellers. On average I made $250/bike, and I could move several of them a week. It was fun! I've backed off because the situation is different now, but I want to keep doing some version of this. Do you think it's best for me to wait for another opportunity like this one, or more proactively search for something that can sell in any market? If I knew something big was coming, I'd rather wait, but of course there's no way to know for sure.
Congratulations, Mike! You clearly hit on a classic arbitrage opportunity, when so many people wanted Pelotons and they were in short supply. Lots of people might have thought about this, but you took action—good for you.
Now for your question, well, the Peloton thing is definitely one of those stories that can be told a long time from now. It's not every day that a global pandemic creates a supply chain crisis and an upending of supply and demand for certain products.
I worry if you keep waiting for an opportunity like that, you might be waiting a while. Much better in my opinion to apply these skills to selling something that's evergreen and not seasonal, even if the profit margin is lower. You already know how to do this—write the listings, work with buyers, encourage them to post reviews—and those skills can be applied to lots of markets.
So in short: I wouldn't wait!
