So, you’ve finally made the decision to participate in storage auctions but are unable to turn a profit? Like all business ventures, there’s no guarantee of success in the buy-sell storage auction biz. Sometimes you’ll turn a profit, and other times you won’t. With that said, many beginners are guilty of making one or more of the following mistakes.
I’ve said it before and I’ll say it again: do not get into bidding wars with other bidders at a storage auction. A bidding war occurs when multiple bidders continue to increase their bids in hops of knocking the other out. Nine out of ten times, this results in highly inflated bid prices in which there is no real winner. Even the “winning” bidder often overpays to the point where it’s difficult to turn a profit. The bottom line is that you should keep your emotions in check, avoiding bidding wars at all costs.
Spending Too Much Time Cleaning Units
Another all-too-common mistake made by storage auction hunters is spending too much time cleaning their units. After winning a unit at auction, you’ll typically have 24-48 hours to remove all contents from the unit. It’s essential that you act fast so you can move on to the next unit. Some storage auction hunters may spend the entire 24-48 hours cleaning the unit, leaving them with little-to-no additional time for attending other auctions. But the sooner you clean out the unit, the sooner you can move on to the next auction.
Targeting the Wrong Units
Want to know the secret to running a successful buy-sell storage auction business? It’s being able to identify a valuable unit. Look for signs like the use of hard-shell plastic containers instead of cardboard boxes, as well as name-brand furniture and products.
Reselling Products at the Wrong Places
Acquiring items through storage auctions is only one step in the process of running a successful business. The second step involves reselling the items. Unfortunately, this is where many newcomers drop the ball. They assume that pawn shops and thrift stores are the best outlets to turn their items. In reality, though, places such as this offer minimal return on your investment. A better approach is to sell the items yourself, either by opening up your own store or selling them online.