Example 1: Ladies' Schwinn Varsity

I passed by this bike at my local Goodwill for three days before I finally decided to buy it for $13. When you find an example like this; with dry rotted tires, cosmetic imperfections but the bike is original and complete with no major corrosion, you have stumbled upon a potential gold mine. Alright, the profits aren't going to be that large, but with a little work, you'll be surprised how quickly you can turn a profit. Follow me on this project, and I'll show you how I did it and most importantly, how much I profited.

You might be thinking at first that it would cost more to replace the tires and have a full tune-up performed than you could actually sell this bike for, and you're right. Unless the bike has a certain appeal or sentimental value, there is no sense in investing the money to make this bike ride like new. Instead, we're going to learn the value of parting out.

In the automobile industry, it is known that the total cost of buying a car piece by piece is exponentially more expensive that buying the whole car. The auto industry capitalizes on this and makes tremendous profits in the replacement and after-market parts segment. Bicycles are no different, just typically not as expensive. Keeping this in mind, look over the bike and determine which items are going to sell in the "aftermarket". After a while, you will learn what sells and what doesn't, but don't make assumptions; even the most insignificant piece of hardware can net you several dollars. Let's take a look at the first parts I am selling off: the headbadge, the brake calipers and the shift levers.

More to come...