Am I "Gun Shy" or...

I've been going to every auction within 30 miles of my home for the last few weeks. Haven't bought a locker yet. Did plenty of bidding.. A little background.. I used to do auctions a few years ago and I'm coming back into it now that my business is up and running.

A few years ago I was buying units at least once a week. Now I'm shaking my head at some of the prices these units are going for. I'm worried that I'm undervaluing some of these units and it's getting to the point where I'm spending a lot of money in gas and not reaping a reward for my efforts.. in a word, I'm frustrated.

Case in point. Yesterday it was pouring here in NC. I went to an auction I found in the legals. Called them up and they had 1 unit. I figured, not many people will show and I've got a shot with little competition. True, not many people showed.. The unit was a 10x10, had about 10 fishing poles, no reels visible, a Fila golf bag with golf clubs (covered, don't know the brand of clubs) 3 old school TV's, mattress and box spring, a lazy boy chair, love seat, an interesting blue chest/bench (couldn't see the whole thing) a flat screen BOX, and misc boxes.

The unit went for $450. I bid up to $350 and dropped out. I was looking at $600 resale, in my estimation.

I know there's no pics to see condition, in my opinion the condition of the stuff was average. No obvious reupholstery, painting, etc.

Another example.. Today 1 unit auction, legals again, not expecting a big crowd. About 12 people at the auction. The unit was another 10x10. Had a couch which had a cover on it and it was beat up pretty good. 2 book shelves covered in stickers and scratches, pen marks. A nice shelf, just dusty, maybe 8 black bags, 1 had plush animals and another had a solid crease, so there was something in it, maybe a picture frame? Also had a nice dresser with mirror (still attached) some boxes, cheap electronics (Magnavox or GPX) and of course the obligatory mattress and box spring. Some other items going straight to trash, fake plants, crappy kitchen stuff (spatulas, strainer)

The unit went for $210, I bid up to $200. I was thinking I'd make about $400 out of the unit. Me and this guy were going back and forth the whole time, nobody else wanted it.

Based on what you've read, am I gun shy, should I be bidding more aggressively because the prices are better than I'm thinking.. Or am I smart to bow out?

Gun shy - maybe a little but from the sounds of these two auctions - smart sense more then gun shy.  Not sure of your setup for selling items.  Depending on your time / method I've learned can determine how you "value" items.  Let's assume instead of the 50% split, I keep 100% of the profit.  I would of looked at the first unit as the following:

Rods w/ no reels - $0 to $20 -- depends on condition, brand, etc. of course.
Golf bag - $25 - $50
Golf clubs - ?
3 TV's - scrap (get more TVs for free then know what to do with them.  1 will sell every 2-3 months)
Lazy boy chair - $75 - $100
Love seat - $50 - $75
Chest/Bench - would need picture but will say $50

So for me - no, at $450 there is very little profit margin unless get lucky with the boxes, rods, or golf clubs.

Prices have fallen some since this time last year.  Even with the tax season price inflation it's not as bad as it was last year in my area.  Some units are priced fair with a good ROI potential.  Other units are so high it's not funny.  If you are bidding you are not gun shy.  It's people that don't even bid that are shy.  You are just being smart in what you are wanting to buy.

For now, I sell the big stuff on craigslist, bring small stuff to the flea market when I collect enough smalls. I have 2 storage units that are waiting to be used, one on either side of town. This area is not really a "fishing" area. The reels are a tough sell, even at $10, I'd be sitting on them a while.

Part of my issue is, I want to flip the stuff quick. Many of my contacts from when I was auction hunting a few years ago have closed up shop or not in a position to purchase materials.

The way I would have priced the items you listed are as follows..

Rods - $10 ea. ($80 total)
Golf bag - $20 (It looked real flimsy)
TV's - scrap
Lazy Boy-  - $50
Love seat - $50
Chest - $150 (big gamble since I couldn't see the whole thing)

That brought me to $350, my top bid. Plus another $250 in misc. sales.

I don't think you are gun shy. Prices have been too high on most units in my area since the first of the year. Hopefully prices should come down a bit come first of May.

In my area, without seeing condition, this is how I would price it.

10 fishing poles, no reels = $50-$100
Golf bag                         = $15-$40
3 "Old School" TVs          = $ 0-$30
Mattress & boxspring       = NADA
Golf Clubs                      = $25-$125
Lazy Boy chair                = $25-$100
love seat                        = $25-$100
blue chest/bench            = $40-$40?
Misc. Boxes (10?)           = $100

Estimate value of unit at $280-$635

You give mattresses 0 value? Even the nice one's? Mattresses sell fast on Craigslist. Single size mattresses in average condition $30-50. Full size in average condition $50-100. Queen & King $75 and up. Top quality mattresses in like new condition - 30-40% of their retail value. New in plastic 50-60%

The price of a new mattress is ridiculous. Went to Mattress Firm a month ago to get a single size mattress for my daughter. The cheapest one they had was about $90. It was so cheaply made I could squeeze the top to the bottom with one hand. Average quality single size mattresses start off at about $200, which is why there is such a demand in the second hand market.

I have ever only had 1 matress/boxspring that I would of been comfortable in selling.  It went to the same lady I dump all of my matress / boxsprings on.  She cuts off the material/stuffing to scrap the metal.  That one set she kept for a new bed.  I prefer to do that then mess with them.  I don't have the storage space, time, or effort.  Now - if they were still in plastic and "newish" it may be worth renting a unit to store for a week or so and doing the CL thing.

Now - if they were still in plastic and "newish" it may be worth renting a unit to store for a week or so and doing the CL thing.

If you price them right, they'll be gone the same day.

You give mattresses 0 value? Even the nice one's? Mattresses sell fast on Craigslist. Single size mattresses in average condition $30-50. Full size in average condition $50-100. Queen & King $75 and up. Top quality mattresses in like new condition - 30-40% of their retail value. New in plastic 50-60%

The price of a new mattress is ridiculous. Went to Mattress Firm a month ago to get a single size mattress for my daughter. The cheapest one they had was about $90. It was so cheaply made I could squeeze the top to the bottom with one hand. Average quality single size mattresses start off at about $200, which is why there is such a demand in the second hand market.

Ive got 2 mattresses & 4 boxsprings unused/new in wrapping right now. No calls in 2 weeks. Priced at 50% or less of retail. People haggle anyway so there really is no room to drop the advertised price anymore. The economy must be buzzin where you live but not here. I'm at your "used" price on Craigslist already on a couple of the boxsprings.

Thanks for your insight! I just bought a locker yesterday.. The first time since coming back to auctions. The unit had some great stuff in it, which I will post about in a new thread!

You aren't too gun shy at all. Prices are outrageous right now in California. The lockers aren't the greatest so when a good one shows, it's crazy! Even the smaller ones with nothing special in them are going for too much. It's usually this way for the first 1/4 and then it kinda gets back to normal. (whatever that means nowadays)

My wife came up withthe idea why the prices for units are so high right now.   Income Tax checks,  while some people get them others got to pay...