Storage Auctions: 4 Essential Tips for Newcomers
Thinking about starting a buy-sell storage auction business? If you are reading this, I'm assuming the answer is yes. TV shows like Storage Wars and Auction Hunters can make it sound like easy money, but you'll quickly learn that it's anything but. However, there are some steps you can take to increase your chances of success, some of which we're going to discuss in today's blog post.
Prepare a Budget
As with any business, it's a good idea to prepare a budget when embarking on a buy-sell storage auction venture. Decide exactly how much money you are willing to spend, allocating this fixed amount specifically for storage auctions. This cash should be used both for bidding on units, as well as other necessary expenses like transportation, storage, marketing, etc.
Know When to Pass
Wouldn't it be great if every self-storage unit you came across contained valuables? Some storage units up for auction will certainly contain valuables, but others will contain little more than empty boxes. Assuming you want to turn a profit, it's important to know when to pass. If you don't see any valuables inside the unit, save your money for the next auction. There's nothing wrong with being optimistic, but you have to consider whether or not it's smart to bid on a unit.
Rent Storage Space
This may sound somewhat unusual, but you'll need storage space to run a buy-sell storage auction business. Even if you're able to turn some of the items you acquire in a relatively short period of time, chances are you'll still have to hang on to some of the remaining items. Granted, you can always stash some items in your home or garage, but what happens when these areas become full? Assuming you plan on reselling the items, you'll need to store them temporarily, in which case renting a storage unit can prove useful.
Identify Storage Auctions
You can't expect to run a buy-sell storage auction business unless you know when and where the auctions are taking place. There are several ways to find storage auctions, one of which is to call around and ask some of the storage facilities in your area. Another way, however, is to purchase a storage auction list, such as the one sold here on our website. Regardless of which method you choose (or both), you need to identify both when and where storage actions are taking place.