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Entrepreneur Plus - Short White
For Subscribers's Ben Federman and the Value of a Daily Steal This 28-year-old Brooklynite built a successful business around the concept of loss leaders. Part of our annual Young Millionaires report.

By Gwen Moran Edited by Frances Dodds

Opinions expressed by Entrepreneur contributors are their own.

There are times when Ben Federman loses six figures on his website's deals. And he's OK with that. The 28-year-old is founder of Brooklyn, N.Y.-based, which offers one deeply discounted item every 24 hours.

Federman typically purchases electronics, jewelry, watches and other goods in large lots--or, preferably, in their entirety--and is thus able to negotiate the best possible price with the seller, which allows him to offer the items at as much as 90 percent off the suggested retail value and still turn a profit.

"I look at it as the best form of marketing," he says. "Everyone is out there trying to spend advertising dollars. But when we go and list a GPS for $30 that sells at Best Buy for $300, people are going to spread the word to everyone they know."

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