I was recently watching an episode of “Storage Wars” in which a newcomer said he was going to quit his job and get into the storage auction business full time. Although his enthusiasm is inspiring, if you are new to the storage auction scene, I don’t recommend you make a commitment like this until you have tested the waters. If you are considering getting into the storage auction business, make sure that it is right for you before you change your occupation.
Go to the auctions, buy some units, sell the contents. Repeat this several times and then, if you are still committed after you are familiar with everything, consider making the change. Realize that this business requires a lot of time and physical labor. I’m not trying to discourage you from jumping in, I’m just encouraging you to look before you leap.
The storage auction business is not what it used to be. The bid amounts that you saw on the first season of the reality shows were normal. Due to the influx of new buyers attending storage auctions, bid amounts have doubled if not tripled at some auctions. Don’t get me wrong, there are still storage auctions that few others know about at which you can get some great deals. The auctions at these storage facilities are referred to as “honey holes” by the professionals because the crowds are unaware of them. The professionals love these places because when there is less competition at an auction, it increases their chances of buying a quality unit at a good price.
Truth be told, most new buyers lose money because they are paying to much for what they are buying. They are hoping that they will find something valuable hidden in the unit that will make up for their overspending. Most of the time, what you see is what you get. Example: (If you see a jewelry box in a unit, chances are it will be empty. If you pay hundreds more on the hope that it is has jewelry in it, you won’t be in this business for long.) Even if the contents of the unit are fairly obvious, you have to know what second hand merchandise sells for and allow room for moving expenses and profit. Remember the #1 rule – only bid on what you can see, set you limit & stick with it. If you follow this rule, you will be successful in the storage auction business.