Your Successful Surplus Business – Diversify Your Supply Sources
One of the most common hurdles that all sales businesses must deal with and address when starting up is the challenge of securing a continually reliable product supply. This is especially true for those looking start a business buying and selling surplus merchandise. The nature of the surplus business is such that supplies of quality goods appropriate for resale are often quite intermittent in nature. Anyone interested in beginning a full or part time business that profits off of procuring surplus goods at low prices and reselling such items at a profit must take steps to reasonably ensure that they can achieve a satisfactory and reliable constant stream of new inventory. If your supply lines happen to run short for any appreciable length in time it could very well cause irreparable damage to your business. You need to make sure that you constantly have enough stock to get you through until your next big acquisition from your primary sources.
For the above mentioned reasons, savvy surplus traders are careful to diversify their supply origins. They’re careful to make sure that they have go-to backups in place. Hoping to achieve regular revenue by only attending government surplus or commercial surplus auctions in order to acquire low priced items for re-sale is fine if you’re just looking to earn extra money on the side. But, if your intention is to turn it into a sustainable part-time business or full-time business, putting all your eggs in that basket alone is likely to end up giving you some real problems. There will be times when supply runs lean, and you might often find yourself in a situation where you don’t have enough inventory to get you through to your next sizable acquisition of new inventory. When this happens, revenue dries up. And, of course, if the dry period lasts long enough, it could cause the business to fail before things once again turn around.
The savvy surplus dealer then is careful to diversify their avenues of inventory acquisition — turning not only to, for instance, surplus sources like government surplus auctions, but instead making sure the option of having connections to wholesalers, overstock or remainder traders, manufacturer direct sources, liquidators or salvage dealers to get them through periods where their mainstay sources might be running lean.
If you’re investigating the possibility of starting your own business in the surplus trade, remember this important advice. It is unwise to go into it thinking that you can be assured of maintaining a viable business in perpetuity just by purchasing surplus merchandise for resale from a single type of source — such as from government surplus auctions. Before committing yourself to starting up your business, you should really consider how and where you’re going to find secondary sources of supply should the need arise. You need to find, for instance, wholesalers who deal in items that your regular customer base is likely to be interested in.
So, if I were thinking about starting a business reselling goods that I had obtained at surplus auctions, I would make sure to fully utilize a service like this one to thoroughly investigate the availability of all potential suppliers that deal in items similar to what my surplus business is working with, in order to get me through lean re-stocking periods should such periods come about. That way, if my primary source of inventory acquisition dries up for a spell, I have secondary sources that I can turn to — secondary sources which may not provide the kind of markup that my primary sources do, but, nevertheless is sufficient to sustain my business through lean periods so that I do still have a business when I finally am able to locate the next fruitful surplus auction or sale to refresh my stock.