One of the requirements of any resale business is having enough disposable income to cover the purchase and storage of your merchandise. When it comes to storage auctions, it’s important to have enough money in the bank to cover a few possible losses. Every unit you get won’t turn a profit, and if you invest your rent money into a unit, you may be sorely disappointed.
This need for disposable income is one thing that holds many people back from attending storage auctions, especially now that bidding prices are going up across the country as newcomers raise costs by over-bidding for units. In turn, this is one reason why storage auctions are particularly popular during and after tax season.
As people start getting their tax returns between February and April, they start to have a bit of extra money to apply toward nonessential purchases. For many people, tax season is the only time of the year when they have money that isn’t already pre-spent on necessities like food, gas and rent. For some, this money gets spent on vacations or home improvements; for others, it gets invested into a new business enterprise.
Of course, just because you have some extra money on hand to buy a unit doesn’t mean you can neglect your strategy. You still need to set a bidding limit and hold to it. You also need to be prepared to deal with uneducated newcomers showing up and raising the bids; they, too, have extra money to spend and may not be smart about spending it. Once you’ve put every bit of your knowledge into action, you can make a reasonably good return on your investment.
Spending your tax return on storage unit auctions can be a smart strategy if you know what you’re looking for. It can allow you to invest the cash into something lucrative that will turn a profit throughout the year. As long as you’ve done your research and are applying smart bidding strategies, you should be pleased with the results.
Storage facilities have discovered this trend among buyers, and many have geared their auctions toward that schedule. Some storage facilities are stockpiling their units in preparation for a massive auction after tax season rather than competing with holiday shopping and other end-of-the-year expenses. Many other facilities operate on a more structured and regular auction schedule, so you can get started early if you want.