Storage Auctions - What You Must Know To Earn A Profit

Have you seen the famous cable TV show "Storage Wars"? If you have, then storage wars will ring a bell. You will be surprised at how spending $300 on one locker can give you a profit of $5,000 or even more. Now, that's good business. However, the odds are high especially to those who do not have any idea as to how to go about storage auctions, the bidding, how much to bid, and what to do with the items, etc.

There are certain things you need to know when it comes to storage auctions in order for you to make a profit of it:

1. Buying more lockers will increase the percentage of generating more profit.

It all boils down to quantity. The more lockers you are going to buy, the higher the likelihood you will earn more profit out of it. Say for example, you buy four lockers and you spend a total of $1,000. Out of the four lockers, only one has valuable items amounting to $2,000 and the rest of the lockers are full of trash.

Imagine, if you buy a locker worth $1,000 and what you get is all trash. You are at a loss of a grand there. It would even be difficult to break even since you only bought one locker out of your grand compared to buying four lockers for the same amount of money.

2. Set a maximum bid and be sure you stick to it.

If there is one thing that we do all learn from Storage Wars is this - set a maximum bid and be sure you are going to stick to it. If you don't, there will be consequences. You will be on break even or worst you are at a loss. When you stick to your maximum bid you are disciplining yourself not to be an impulsive buyer. You think first, before you bid. If you reach your maximum bid, and someone else is bidding higher than you, let go. Don't let emotions set in. Be logical and stick to your maximum bid.

3. Have an idea as to where you will dispose the items.

Lastly, you need to have an idea as to where you are going to dispose the items.

Remember, you are not allowed to check the items individually. You can only see what's inside the locker in a minute or two. That's it. Then, you decide whether you are going to bid for that locker or not. Before you decide, be sure you have an idea as to where you are going to sell the items just in case you win the bid. At least, you will be prepared and not at a loss.

Remember, you are given a specific time frame to dispose the items. If not, you are going to rent the locker you just bought from the auction. This will be an additional cost on your part. If you are going to make this a business, be sure you are going to minimize your expenses and maximize your profits. Renting out a locker will not help you in any way to gain more profit.

One tip, if you want to engage yourself into storage auctions business it is advisable to go out there and see it in person. This is to give you an idea as to how the auction is done, and have a feel as to the entire process. You never know, storage auctions will become a profitable business for you.