Thinking about starting a buy-sell storage auction business? Doing so can be a fun and financially rewarding venture, but you need to have a general understanding of how the bidding system works. Far too many people are drawn to the allure of making quick money, but they ultimately fail to succeed because they don’t understanding the bidding process. In today’s blog post, we’re going to reveal some of the things you should consider when bidding on storage units.
What’s Your Budget?
You should have a budget set before attending any storage auction. Trying to “wing it” is a recipe for disaster, as you won’t know whether or not you are staying profitable. Keep track of your expenses and income to determine exactly how much money you can spend at storage auctions. And when it comes time to bid, don’t let your emotions get the best of you; stick to your budget and don’t go over it.
Do You Plan on Bidding on Other Storage Units?
If so, you’ll want to adjust your bids accordingly during the first auction. Spending all of your money on the first unit may prevent you from being able to bid/win a second unit. Of course, this isn’t an issue if you’re only visiting a single auction, but most seasoned storage hunters attend multiple auctions.
What’s The Competition Like?
Conventional wisdom should lead you to believe that the more people who are bidding on a storage unit, the higher the price will be. There are always exceptions to this rule, but you can expect to pay top dollar for a unit when half a dozen or more people are actively bidding on it. This doesn’t necessarily mean that you shouldn’t bid on a unit; however, it’s best to keep your bids low to ensure a positive return on your investment if you happen to win it.
What’s The Value of The Contents?
Arguably, the single most important thing to consider when bidding on a storage unit is the value of its contents. Unfortunately, you won’t have the opportunity to rummage through the unit before placing your bid, nor will any other bidders for that matter. However, you can scan the unit’s contents once the auctioneer cuts the lock. Pay close attention to brand names, vintage/antique furniture, collectible and lock boxes, as these typically hold a great deal of value.