Here’s a scenario to consider: you locate a storage auction in your area and arrive at the time of the auction, only to discover that it’s packed full with more than a dozen other bidders. Conventional wisdom should lead you to believe that more competition equals less profit. When there’s more people bidding on abandoned units, the sale price goes up; thus, lowering your return on investment (ROI). However, this doesn’t necessarily mean that you get back in your car and drive home. With the right approach, you can still turn a profit at overcrowded storage auctions.
Why Competition Isn’t Always Bad…
Contrary to what some people may believe, competition isn’t necessarily a bad thing with storage auction. You have to remember that there’s a reason why so many people are eager to bid on abandoned storage units — and that’s usually because it’s a profitable business. If it wasn’t lucrative, there wouldn’t be much competition (if any), meaning you would have the entire floor to yourself. But storage auctions are profitable, which is why so many people are eager to show up and bid on them.
If you are worried that a storage auction is going to be crowded, show up at least 15 minutes before the auction is scheduled to commence. Doing so will give you additional time to find a parking spot, familiarize yourself with the facility’s layout, identify the units that are up for auction, and gather all of your necessary tools and equipment. Waiting until the it’s actually time for the auction may result in you driving around the facility aimlessly as you try and find a parking spot while everyone else bids on the abandoned units.
Watch Your Bids
Don’t make the mistake of getting into “bidding wars” with other storage auction hunters. As the name suggests, a “bidding war” occurs when two or more people continue to raise their bids in an effort to knock out the competition. The problem with bidding wars such as this is that no one comes away as a winner. Due to the inflated bid prices, the highest bidder often pays more than what the unit is worth. So if there’s a lot of people bidding on a particular unit, keep your emotions in check and refrain from bidding.