Storage auctions have become an increasingly popular venture in recent years, and for good reason: practically anyone can get started in this business with a very minimal investment. And when it’s done right, storage auctions can yield HUGE returns, making it a profitable business. However, there’s a great deal of confusion surrounding this industry, which is something that we’re going to discuss more of in today’s blog post.
You Can’t Tell What’s Inside a Storage Unit
Most self-storage facilities have strict rules prohibiting bidders from touching the contents of units that are up for auction. This may lead some people to believe that there’s no way to tell what’s inside. While you are typically prohibited from touching or even entering a unit before bidding, you can look inside to help determine your bid. If it contains items of value that you can clearly see, it’s probably safe to increase your bids.
All Storage Units are Valuable
Wouldn’t it be great if every storage unit up for auction contained thousands of dollars worth of items? Granted, you’re sure to come across some units like this during your travels, but others may contain few (if any) items of value. This is why it’s important to control yourself when bidding on units. Don’t assume that all self-storage units are worth bidding on. Constantly bidding on high on every unit may prevent you from turning a profit. Knowing how much to bid and when to stop bidding is critical to the success of a buy-sell storage auction business.
Running a buy-sell storage auction business takes a lot of work — more than most people realize. In addition to checking the dates and locations of upcoming storage auctions, you must also physically move all of the items you acquire. Depending on the unit, this may or may not be an easy task. If the storage unit contains large furniture and televisions, it could take you a while to move them. Furthermore, you’ll probably need another set of hands to help haul these items.
There;s Too Much Competition
Don’t get me wrong, more people have entered this business since all of the storage auction shows have begun to appear on TV. However, this doesn’t mean that it’s too crowded for newcomers to enter. On the contrary, competition is a sign of it being lucrative, so don’t feel discouraged by large crowds when you attend your first auction.