Storage Auctions

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Topics - MTP

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After about 30 units I am done with the game.

I know Rome wasn't built in 6 months either, but I am tired of trying to sell nice stuff and nobody I mean NOBODY wants to buy it. OuR arEA (California Central Valley) is so depressed people need $$ for food.

I know I could have made it work, but I know for a fact no matter what it would have been TONS of backbreaking work.

Thankfully a friend led me on to another very promising business venture that's more along my alley.

I will miss the gold scores and fun people I met at the auctions and still might come out from time to time for some BSing. But I am going to get rid of what's left and move on.

Good luck all and thanks for all the advice and fun!

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Am considering opening an antique/collectibles mall/coop with a friend and running some numbers.

Rent of course is different everywhere, but what is the going rate for a 10x10 stall/booth?

I am thinking $150-$175.

Base rent in this area for retail in a decent part of town is at least $1 / sq ft. Often plus NNN and of course utilities etc.
Also figured into the equation would be that we would do some advertising and everybody benefits from that and any advertising the individual vendors would do.

So $2 per sq ft is really not THAT outrageous.... or is it?

The next thing is a commission on sales on top of that.
I actually want to give dealers an incentive to price stuff to sell, so I am thinking that I charge 15% commission on the first $1000 and 12% thereafter BUT credit that towards rent.

So at a $150 rent and $1000 sales he only pays commission and NO RENT....

Also want to offer display cases at $60 or so per month for seller of valuable small items. Jewelry etc
And a straight consignment area for bigger items furniture etc at NO RENT but a straight 50/50 split.

Any thoughts or ideas on this?

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Ok here it goes again.

I am having a very hard time actively selling my finds. I don't think my prices are bad, the stuff is good, at least priced accordingly.
Yet they sell reaaalllll slow....

A little more background.
I am in a financially VERY depressed area. People simply do not have money to waste.
I have a 1,500 sq ft warehouse of thich I use about 700 sq ft for display of my stuff. ostly 'ok' furniture.
I can not do yardsales at home (apartment).
I CAN do yardsales at my warehouse, but being in a somewhat remote industrial area limits the traffic.
I tried it 3 times and it was sluggish the firsat 2 times, the 3rd time was a disaster. 3 people, $13 total.

I tried fleamarket. A LOT OF WORK for little $$. Blew out the good stuff for pennies on the dollar and got stuck taking back 90% of my smalls anyway.

I have been working with a nice consignment store in a neighboring city with more favorable demographics. At first I was taken back by them taking 50% of the sale. But once I realzied they are getting WAY more than double what I could ever get it was actually a real winner. Of course not everything will sell, but so far so good.
They also are VERY selective. It has to be in real nice condition or unique for them to take it.

On top of all this I am not a very sociable guy. I am wrking hard on getting better at this, as I understand it is a key in this business, but at 43 I will never be mister popular ever. LOL....

So here is my thinking....
I can get a few more consignment arrangements going. Some are also willing to take the rejects of the 'better' store. Same deal 50/50 split, but probably get more money than I could, so it wopuld be a win/win situation.

I am very good at ebay and amazon for the stuff that's worth it and practial enough.

I am thinking I will try to get as many consignment and wholesale arrangements set up as I can and for the smalls I would actualy continue my yardsale at the warehouse.
I also have consigned to a local auction house and the results were ok as well.

Do you guys think this business can be viable if I focus heavily on the passive sales, e.g. let others sell the stuff I can't handle online or otherwise?

4
Stories about Storage Auctions / Saw a new record for me today....
« on: May 10, 2013, 06:50:57 PM »
Went to a town where people are notoriously bidding high.
Newbees all the time.

Anyway....
An overhead unit only accessible with a rolling step ladder came up. Size: 3 x 3 and maybe 3-4 high.
Nobody was allowed on a ladder. We all peeked from the bottom.

You could not see ANYTHING identifiable. Several plastic bags and ONE older bathroom medicine cabinet. Standard junk.

Opening Bid blurted out by whoever they were: $200

The damn thing sold for $375.

Absolute insanity!!!!!

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We all hear the stories and we all have seen units that somehow don't 'look right'.

Honestly I am sure it happens, but it is rather rare.
Here in this area people pay up to the moment of the auction ALL THE TIME.

The risk of the thieves getting caught is way too high.
If a unit looks picked over, it likely was before the owner got locked out.

One manager told me 'all proud' that she really tries helping the tenants going as far as letting them in and get their good stuff out even MONTHS after they became delinquent. What a moronic move ... what intention do the tenants have now to pay up if all the goodies are rescued?

I still go to that facility but bid with real caution, if at all.

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