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Starting A Storage Auction Unit Business

Storage unit auctions have been a very lucrative way to make money, it might look like a gamble where sometimes you win it and sometimes you lose. But actually there are some tips you could follow to profit in this money making venture. Some strategies you can employ to minimize losses and make big profits from these auctions just by sticking to these standards and making professional and logical moves that could only spell success and profits for you.
Success in making right decisions on storage auctions and merchandising requires following some fundamental rules. The most basic of these is to obtain items of good quality that people will actually want to purchase, and to acquire them at a low enough cost to ensure adequate profit. Once this challenge is met, the entrepreneur’s success is largely assured.
What You Need For A Storage Auctions Unit Business
Basically having capital to buy out storage units being auctioned would be necessary to get you rolling. Looking for these storage units auctioned would be the next step. It would not be that hard to find, there are many storage units everywhere and they auction very often for non-payment of rent for the storage unit.
Start-up costs are minimal: a van or pickup truck (a trailer towed by a car will do) and a few hundred dollars are all that is required to begin your own business. Across the United States a huge supply of desirable products exists for low prices. Furniture, electronics, appliances, clothing, books, art, toys, tools, and a plethora of other goodies can be had for a fraction of their true value. The purchaser can use these items themselves, or resell them for a generous mark-up.
Growing Your Storage Auction Unit Business Over Time
Taking into consideration that there would be times that you bid for items that are in the end you would find out, have less value than what you gave out to for the bid. These cases are inevitable but you could always reduce the chances that these would happen to you. Remember that your primary goal is resale. It’s through resale that you would gain profit, don’t bid for $300 for goods that would resale only for $50 its always a good idea to check local flea markets, yard sales, classifieds, salvage stores, E-bay etc. for prices to make better judgments on how much you should spend or bid for certain goods.
The best way to start bidding is always bid low, have a limit, for example put your limit at the 50% of the actual price of the goods. This way you are sure of your profits. You can determine the value by always estimating the resale value of the goods. Auctioneers would always open the storage units so you could see its contents, this is your chance to evaluate and give the goods a certain value. Then you can now place your highest bid at the limit you have set which is 50%.
Another tip is always sort the goods on the spot after the bidding make assessments on items that are of true value and those that are going straight to the junkshop. This way other bidders might be interested at some of your items and would be willing to buy it from you easily making your first resale on the spot. Sometimes some of the items would need a little work or repair. Always look beyond the dust and scratches of the items, look over them very well and sometimes you might find that a colored TV only needs a new part, a lawnmower only needs a new sparkplug. This way you raise the items value by making it usable again.
Remember that where you usually find the prices for such items are also the best venues for you to sell them. Storage unit auctions can be a hit or miss, some have been able to make their money back by selling the goods purchased and others have lost money due to the fact the unit they bought didn’t yield items with high enough value. Even though these types of auctions can be much like Christmas, not knowing what you’re going to get, they provide a different way to bid and their popularity is increasing as more and more people learn about them.

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