Originally Posted by Pompiere
I guess I had the wrong idea of what "flipping" was. I always assumed it meant finding an under valued treasure (garage sale, gift from friend, dumpster, etc.) and then selling it for a profit on ebay, with minimum work/expense put into it. If you are adding value by cleaning, lubing, replacing parts before selling, then you may never recover all that you put into it, but at least you have a relaxing hobby that kept a bike out of a landfill.
That's the nut, right there. You're version of "flipping" is right on. I absolutely try to put in minimum expense and realize a decent profit, but I won't flip a bike that needs work. Therefore, labor is a constant and thus the biggest "expense".
Undervalued treasures are relatively few and far between.The reality is more like finding decent bikes in various stages of disrepair at thrifts and other places for modest prices, and getting them back in running trim. If you evalute every potential bike properly, labor will always be the biggest obstacle, as most bikes need at least 2-3 or more hours labor to set things right. Think of it as sweat equity when you're flipping a house - same deal. The questions you need answered when you come across a potential diamond in the rough are three-fold:
1) How much does it cost
2) How much will it cost in parts/labor to make it sound/desireable
3) What will it be worth at resale
Obviously, if you have to pay $50 for a bike, sink $50 into it, and only get $120 for it after spending 2-3 hours getting it ready, it's not really worth it. Answering those three questions sounds easy, but sound evaluations come only after experience.
Remember - "good judgement comes from experience, and experience comes from poor judgement".
Consumables are another factor - Tires, tubes, bar tape, cable housings, and cables are an example. Most bikes I find will need at least tires and tape, and quite often more than that.
When you make a mistake and buy a candidate that you shouldn't have, you have just created spare parts inventory. Now you can spread your "loss" over future projects. Also, you can hook up with others in the area that do the same thing, and trade parts.
In summary, if I come across a decent bike that needs a lot of work, I'll have trouble forking over much more the $10 for it, unless it is special or I want it for myself. Otherwise, it's just not worth the time and effort. You have to "add value" to move it along, and if done properly you will always make something on the effort.