It's easy to get overwhelmed with auctions. If you live in a reasonably large city, you can find several auctions per week, and your entire weekend can swiftly be overtaken with auctions. While more auctions can translate into better odds at big profits, it's also important to pace yourself so you don't get in over your head.
There are a few obvious benefits to going to every auction you can. First, you'll be exposed to a greater number of units, and this can translate to greater odds of finding great deals. You'll also be able to make valuable connections with others in the industry, and this networking can help you buy and sell a greater quantity of merchandise in the future.
Nevertheless, there are also several reasons to be more selective with which auctions you attend. Driving to multiple auctions can burn a lot of gas, and you might lose money if you hit a run of particularly bad units. You also have to be prepared to clean out units and store the items; if you're doing multiple auctions in a week, you might not have the time or space to deal with all of them.
When it comes to deciding whether a certain auction is worth your time, there are a few things to consider:
- Is the facility in a nice part of town or a place that's more shabby? Of course, this isn't always a good indication of quality, but it might be indicative of general trends.
- Are there multiple auctions within a single area, or would you need to travel widely to go to all of them? Pick the most heavily-congested areas and avoid the others to maximize gas economy.
- Do you have a good relationship with the facility owners? Will you get any perks from going to the auction?
- Is the auction well-advertised, and will there be a lot of people in attendance? A popular auction may be too crowded and expensive to be worth exploring.
- Does the facility have auctions frequently or only a few times per year? You don't want to miss a major auction, but frequent auctions may not have enough variety to be worthwhile.
- If you have a good run, will you have the space to store your goods? If you have a poor run, can you afford to recover from the loss of time and gas money?
When assessing whether to attend an auction, your main question should be this: Can I make a greater profit doing something else with my time rather than visiting this auction? If the answer is yes, you may want to spend your time selling items or dealing with other aspects of your business rather than buying more merchandise.
With time and experience, you'll get a better feel for which storage facilities have the most lucrative auctions and what facilities to avoid. The answer of whether to attend more or fewer auctions is something every auction-hunter needs to determine for himself, but following the guidelines above can help you make a final decision.