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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.
The thought of making money by flipping cars from auctions or flipping surplus vehicles obtained at auction is very attractive to a number of people. And, there’s good reason for this: there is most certainly good money to be made by flipping cars from auctions and the process can be very interesting and fun.
It’s possible to obtain used cars from auctions — be they government surplus auctions, or private auctions of used or surplus vehicles — for quite literally pennies on the dollar. It’s possible to find automobiles that are able to be purchased at substantial discounts and then turn around and sell them directly to private buyers for a higher price, simply because most buyers either aren’t aware that such auctions even exist, or, if they do, they don’t know how to go about locating these auctions nor how to take part. Or, if you’re mechanically savvy, there are even greater profits to be made flipping cars from auctions by acquiring automobiles at auction that require some minor work, putting in the work needed, and then flipping the cars for a substantially greater markup.
The one hindrance, however, that many people are likely to encounter if they have a serious mind to regularly earning a significant amount of money by flipping cars from auctions, is the need for a used car dealer’s license. In many places in North America a person is limited to only being legally able to sell a very small number of either new or used automobiles every year before they are required to obtain a dealer’s license. The exact number of cars one is able to legally sell in any given year without needing to hold a valid used car dealer’s license varies somewhat depending on location, but in most jurisdictions the number of automobiles one is legally able to sell annually is limited to just three vehicles. That equals just one sale every four months. Of course, the profits which you’re likely to earn by buying and selling only three used cars in a year isn’t very likely going to be worth your while.
Flipping Cars From Auctions — The Reality
The reality is, if you seriously want to turn flipping cars from auctions into an actual side business, or something more, you really are going to need to acquire a valid dealer’s license. Unfortunately this is not easily done. The process is a convoluted, somewhat confusing and very often painful experience if you’re not familiar with the ins and outs of it. Fortunately, there are experienced people out there, who will act in a consultancy capacity, whose business it is to help you through the process and make the act of obtaining your own used car dealer’s license as simple and painless as possible.
If you’re thinking seriously about earning regular money, either as a hobby, a side-business or part-time business, or even as a full time business, by flipping cars from auctions, the fact of the matter is that you’re going to need a used car dealer’s license. And, unless you have experience obtaining a dealer’s license and know the ins and outs of what is required in order to obtain one, you’re not extremely likely to be successful in your endeavor. You’ll most probably need to use the services of someone who is knowledgeable and has experience helping people like you to obtain a dealer’s license.
One such person who works with people in order to help them obtain their own dealer’s license is Don Massey — a licensed car dealer from Colorado. Don has more than twenty years of experience in helping people to obtain used car dealer’s licenses.
Probably the best part of holding a valid dealer’s license is that the dealer’s license will give you access to dealer-only auto auctions that take place all over the country almost every day. Holding a valid dealer’s license also gives you access to proprietary databases accessible through the internet that are maintained by the auction companies that hold dealer-only auctions. These restricted access databases (open only to people who hold a valid dealer’s license) provide information on all of the sales made at these auctions — what cars sold, extensive details about each car and what they actually sold for. Having access to this information will allow you to price automobiles much more effectively than anyone who doesn’t have access to such information.
There’s absolutely no doubt that if you’re thinking about flipping cars from auctions on any sort of a regular basis, you really must hold a valid dealer’s license.
Flipping Cars From Auctions — Helpful Link Resources:
- Obtaining a Dealer’s License.
- Auto Auction Locating Service.
- Canadian Government Surplus Vehicle Auctions
- US Government Surplus Vehicles Auctions
- Government Vehicle Auctions Locating Service