Thinking about embarking in the storage auction business? There’s no denying the fact that it’s a fun and exciting business with huge earnings potential. If you’ve ever watched one of the many reality TV shows centering around storage auctions, you probably know just what type of valuable items can be found — and for a fraction of its actual cost. However, there are a few things that new buyers should know before attending their first auction.
Bidding is an area in which many newcomers mess up. The exciting of attending your first auction may cause you to bid high for the sole purpose of acquiring the unit, regardless of cost. When this occurs, however, you may end up paying more than what the unit is worth, in which case you’ll take a net loss on the unit. To prevent this from happening, base your maximum bid only on what you can see.
If you hear about a particular self-storage unit holding an auction, keep it to yourself. You may feel inclined to spread the words to your friends, family and neighbors, but doing so will only result in more competition. And going back to the basics of economics 101, competition will only make it more difficult for buyers such as yourself to turn a profit. Too much competition will jack up the bid prices, at which point you’ll face an uphill battle trying to make a profit on the unit.
Bring a Truck
Or a van for that matter. The bottom line is that you need some larger-than-your-average-sized car to haul off large items acquired through the storage auction. It’s very rare that you’ll find a storage auction filled only with small items. Tenants often use their storage units to store furniture, car parts, ATVs and other large items. Unless you have a large enough vehicle to haul these items, you could be forced to leave them behind, forfeiting huge profits in the process.
Plan Your Auctions
Planning is critical when running a successful buy-sell storage auction business. Instead of blindly venturing out in search of an auction, plan them ahead of time. Using a list service like the one offered here at StorageAuctionList, you’ll know exactly when and where storage auctions are taking place. Using this information, you can plan your weekly schedule, creating routes and timelines for each auction. Remember, the more auctions you cover, the more profit you can make.