Still struggling to turn a profit in the buy-sell storage auction business? Like most ventures, there’s no guarantee of success. Some people enter this business with the assumption that it’s easy money, only to realize that turning a profit from storage auctions requires actual work. But if you’re willing to invest the necessary time and energy, you can turn a decent profit. Just follow the tips listed below to get started on the right track.
Attend Multiple Auctions
Rather than focusing all of your attention on a single self-storage facility, it’s recommended that you attend auctions at multiple facilities. Generally speaking, the more auctions you attend, the better. Some facilities may be flooded with an excessive number of bidders, resulting in inflated bid prices. By checking out multiple facilities, however, you’ll have a greater chance of finding auctions with little-to-no competition, in which case you’ll have an easier time scoring units at a lower price.
Establish a Network of Buyers
Obtaining items through storage auctions is only half the battle. Unless you can find a buyer for those items, you aren’t going to turn a profit. Reach out to pawn shops, retailers, and collectors to see if they are interested in your items. Rather than making a one-time deal, however, you should keep their contact information for future deals as well.
Don’t Bid on Every Unit
I know this probably sounds like common sense to most seasoned storage auction hunters, but it’s still worth mentioning that you should NOT bid on every unit up for auction. For every unit you win, you’ll have to spend time and labor cleaning it out and reselling any valuable items. If the unit contains few-to-no valuables, you could actually lose money on it. This is why it’s essential that you size up the contents of a unit before bidding, looking inside to see what it contains. Once the auctioneer cuts the lock, bidders will typically have just a few minutes to peek inside. use this time wisely by calculating the average value of what you can see, using this as your maximum bid price.
When it comes to the buy-sell storage auction business, time is money. The faster you clean out the unit and resell its contents, the sooner you can attend another auction. So if you’re looking to increase your profits — and you should — pick up the pace. This means clearing out the unit in a timely manner and hauling off the contents.