Starting a Resale Business

February 14th 2014

When it comes to starting a resale business, diving in the water head first is not always the best strategy. It is important to do as much research as possible before taking the plunge. A good option is to talk to other resellers and learn from their experiences.  But if this opportunity doesn’t present itself, the internet is a great resource for obtaining this knowledge as there are hundreds of blog posts from successful auction hunters that often write about their experiences and strategies.

Now that Canadian online auction companies such as exist, it is possible to monitor and browse auctions and active bids online. The more auctions that an up-and-coming storage hunter follows, the greater understanding they will gain on the potential value of storage lockers and the optimal bid range. In order to correctly estimate a locker`s worth, further research must be made to determine the market value of the diverse set of items that are contained in these lockers. Online marketplaces like eBay are excellent resources to gauge the market value of specific goods that are up for sale. Auction hunters always know the resale value of each item won in an auctioned storage unit should be greater than the bidding price of the unit itself, otherwise a profit may not be realized.

Business is all about the return on investment. This is where a business plan can come in handy.  It can be a challenge to operate a sustainable business when considering the capital to be invested, initial start-up costs and ongoing operational expenses.  When an individual has an established amount of capital to invest in auction hunting they would first have considered all necessary expenses before they enter the bidding battle field.  For example buying or renting a large van or truck is necessary when clearing the contents of a winning bid and this newly acquired inventory has to be placed somewhere. Ironically, if our aspiring entrepreneur cannot afford to set up a used retail shop, then renting storage units becomes mandatory and has its own associated costs. Once all of the expenses are factored into the business model, the remainder of the budget can be spent on bidding. It is important to spread the budget over multiple auctions as there will always be the risk of overbidding on a single unit and not turning a profit on its sales. When selling in an online market place, time must be a consideration because listing and selling merchandise can be a lengthy process. The net profit must then be compared to the overall time invested, which includes the bidding process, the acquisition of products and their final sale. This calculated figure is the storage hunter’s wage or salary and it is essential that it can sustain their cost of living.  As for any business, reaching a profitability level that can cover basic monthly expenses takes time to establish.  As a result, there should be some reserve funding made available in order to tackle the highs and lows of storage auctions.  One must be realistic in their expectations and disciplined in their bids.  As so often seen on television programs like Auction Hunters, knowing when to gracefully bow out of a bidding battle is part of the discipline needed to become a successful bidder and entrepreneur. 

Use to explore auctions in your specific area such as Toronto online storage auctions, as well as active auctions in Vancouver, Montreal, Edmonton, and more!