Why Resellers Should Invest Instead of 'Paying Up': A Business Growth Guide

Investing in your fashion resale business can feel intimidating, especially if you’ve grown up with the idea that spending is bad and saving is good. While this might be true for personal finances, in business, the rule is clear: it takes money to make money.

Whether you’re a new reseller or an experienced one, adopting an investment mindset is crucial for growth. The more you invest strategically, the more your business can scale. But here's the catch—your words matter.

Have you ever thought about how the words you use shape your mindset? Words like "paying up" create a negative association with spending money. Let’s shift that narrative to “investing in your future,” which emphasizes growth and opportunity.

How Words Shape Your Business Mindset

Think about the phrase “paying up.” What comes to mind? Annoying bills, unexpected costs, and feeling like money is slipping through your fingers. Now replace it with “investing capital.” Doesn’t that feel empowering?

Your mindset is one of the most powerful tools in your arsenal. As Tony Robbins says:

“The words you use to describe the experience become the experience.”

By reframing your mindset, you’ll see opportunities instead of obstacles. And in the world of reselling, opportunities abound—if you’re ready to invest in them.

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Scenario 1: A Chloe Bag vs. a Bank CD

 

Here’s a perfect example of why investing beats “saving.” A year ago, I bought a Chloe purse in excellent pre-owned condition with its original receipt for just $150. Was it one of Chloe’s top-selling styles? No. Were there any comps to guide me? Also no. But it was a designer purse, originally priced at $2,200, and I recognized its potential.

For a full year, the bag sat unsold. Would most people panic? Absolutely. But here’s why I didn’t:

• $150 sitting in a bank account would stay $150 forever.
• That $150 in the form of a Chloe purse had the potential to triple in value.

After 12 months of no offers, the purse sold for $400. My initial investment of $150 turned into $400—a 166% profit. Now, compare that to a bank CD (certificate of deposit). To make the same $250 profit with a 1.5% interest rate, you’d need to lock up $3,500 for five years.

The takeaway? Your money can work harder for you when it’s invested in undervalued assets like designer goods.

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Scenario 2: Designer Boots vs. Savings Accounts

 

Let’s talk about the most gorgeous pair of boots I’ve ever purchased—Philosophy di Lorenzo Serafini suede boots. These Italian-made beauties cost me $90. There were no comps, but I knew they were from a high-end designer and in excellent condition.

Did they sell instantly? Nope. For seven months, those boots sat in my inventory. But guess what? They finally sold for $250. That’s a 178% profit!

Here’s why this is important:

• $90 in a bank account would have earned you less than $2 in a year.
• By investing it in a unique designer piece, I turned it into $250.

This is why understanding brand and market value is crucial for resellers.

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The Key to Investing as a Reseller

So, when should you invest in higher-priced inventory? Anytime you see an undervalued asset with profit potential. But how do you identify these opportunities?

1. Do Your Research:
   Understand the brand’s demand and market value. For example, are designer boots trending? Are there limited listings for the size you have?

2. Know Your Numbers:
   Always assess whether the purchase fits into your budget.

3. Think Long-term:
   Not every item will sell overnight, but the right pieces will multiply your money over time.

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Why Hoarding Cash Hurts Your Business

Saving every dollar you make is safe but not strategic. Think of every dollar as an employee—it should work for you by generating more revenue. By leaving money in the bank, it sits idle, losing value due to inflation. Instead, use your capital to purchase inventory with growth potential.

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In Summary

1. Stop thinking of inventory purchases as “paying up.” Start thinking of them as investments.
2. Learn to identify undervalued assets and invest in products that could double or triple your money.
3. Your money sitting in a bank earns you virtually nothing. Put it where it can grow.
4. Shift your mindset from being a “reseller” to being a business investor.

Investing in your business isn’t just about spending money—it’s about building a foundation for long-term success.

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Ready to Scale Your Reseller Business?

Want to learn the strategies that have helped resellers make double the money with the same amount of work? Join my free masterclass:
"More Money, Less Work: Business Strategies for Resellers"
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Let’s make smarter investments and grow your business together.