Surplus Industry

now browsing by tag


Your Successful Surplus Business – Diversify Your Supply Sources

Surplus Business Government Auctions How To

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.

Secrets of the Surplus Business Industry

Secrets of the Surplus Business Industry

Government departments as well as both private commercial and industrial businesses and corporations are currently going through what appears to be an almost unprecedented trend of laying off employees. That’s bad news. Every cloud, however, seems to indeed have a silver lining. As these business entities are liquidating worker positions, so are they liquidating their material assets. And, they’re doing this in the form of selling off their goods as surplus. This means, of course, that these government, commercial and industrial items are being sold off as surplus goods, quite literally, for pennies on the dollar.

The difficulty is that when such government and corporate entities engage in such surplus liquidation, they most often do so very discreetly. That means that such sales can be difficult to find and take part in. These companies are not keen to widely promote the fact that they’re cheaply selling off items they procured by mistake, items that they purchased which turned out to be useless to them, items that proved difficult to move through regular retail avenues, or that were returned to them by unhappy customers. And, most especially, they are not keen to advertise that they may be in somewhat of an undesirable financial predicament and are looking to move excess merchandise swiftly by selling it off at exceedingly low prices.

These surplus sources move their surplus merchandise by building and maintaining relationships with a small number of trusted and effective buyers that they know can move their excess stores quickly while generating the least amount of attention possible. They like to keep competition for their surplus sales very low. They want few buyers, but effective buyers. This way, they draw the least amount of attention away from their regular business dealings, while moving their excess product so they wont incur the expense of storage, destruction, or waste removal. And, for these reasons, the surplus industry is currently booming!

The surplus business industry is one of those unique business ventures that isn’t affected by the state of the economy the way other, more traditional sales businesses are. In fact, an economic down-turn usually results in something of a boon for those who make their living in the surplus trade. In such an economic climate, people with goods are willing to sell low. And, of course, people in need of goods are looking to buy low — even lower than they usually are. In such an economic environment, if you earn your money in the surplus industry, you can make purchases for even lower than the low prices normally found on surplus items because sellers are more desperate to turn excess material assets into liquid cash, and you can turn around and sell them quicker because there’s more people out there looking more stringently for bargain merchandise that can be obtained for less money than they can at standard retail costs. Buying surplus items and flipping them for profit is a business that is about as recession proof as businesses ever come.

Surplus Business IndustryWith all of that taken into consideration, it seems as though everybody would be jumping at the chance to get their hands into the surplus industry. However, only a very small amount of people seem to know anything about it. And, even fewer are actually involved. Why is this? The short answer is that surplus brokers — the ones who have truly found success in the industry — are exceedingly reluctant to tell anyone about it. More people — more buyers — equals more purchasing competition. That drives up bids and inflates prices that surplus merchandise ultimately end up being sold for. And, the whole shtick behind the surplus industry is under-market-value pricing. More buyers — more people who know about it — destroys the very essence of the business. So, those in the know are just not talking.

These are the real secrets of the surplus business industry. You can make good money operating as a surplus broker — you just need to know how to break into the industry.

As a quick example of how to turn surplus into a profitable side-business, let’s take the example of someone I know — my friend Roger. He’s a recently retired bus driver. After thirty years as a bus driver he retired with the intention of enjoying the rest of his life doing just about nothing. And, for a short while, he did just that. He quickly found, however, that he was becoming bored with that lifestyle. He enjoyed it for a while as a sort of extended vacation. But, he discovered that he is the type of person who, while he enjoys having a lot of leisure time, needs to do something — some sort of work — in order to feel fulfilled

He decided to start a business. But, he wanted something that would allow him a lot of leisure time, wasn’t stressful or taxing, and was something he actually enjoyed doing. After investigating a number of options, he became a rather small time surplus goods broker using an extremely simple business plan.

He simply began purchasing quality merchandise for pennies on the dollar from various surplus sources. He then rented a space at a local, but fairly large flea market that takes place on the weekends. He works only Sunday’s from 7 A.M. to 3 P.M. The flea market charges him $30.00 per weekend for his space, and $20.00 per week to store his goods in a secure storage locker on the premises. His total cost is $50.00 per week. And, on an average Sunday, he does about $400.00 in profit.

Now, $400.00 a week might not sound like big money to you. But, keep in mind, he’s loving what he’s doing. Other than one Sunday a week he completely makes his own hours. He has free leisure time 24 hours a day/ 6 days a week just about whenever he wants or needs it. And, an extra $400.00 per week is a pretty nice booster to the pension he’s already collecting. Roger doesn’t want to be, or need to be rich. He’s happy with just enough money that will allow him to live an enjoyable and comfortable retirement. And, his pension along with the extra money he’s earning by having fun in his part-time surplus buying and selling business is providing him just that. Roger is happy.

He spends a few hours during the week locating surplus auctions and sales and buying merchandise to sell at his flea market stand. He says he has great fun doing this. It’s exciting to him — hunting down bargains and snagging deals. He spends his Sundays selling what he’s acquired. He loves it. He gets to meet and talk with all sorts of interesting people and enjoys the thrill of the sale he engages in with them. He enjoys the friendly haggling. And, he enjoys going home at night with an extra $400.00 for his day’s pleasurable activities. And, of course, he enjoys the benefits realized by his reasonable supplement to his already reasonable pension that he earns for himself merely by engaging in efforts he finds fun and fulfilling.

army_shopSo, that’s a good example of how you could turn the buying and selling of surplus goods into a fulfilling and profitable side-business to earn extra money in your spare time. Or, you might be looking for something a lot more lucrative. That can be achieved as well. It’s all a matter of how much time and effort you’re willing to put in. Of course, if you just want to work Sundays selling your goods, and put a few short hours during the week finding and buying surplus merchandise, you shouldn’t expect to get rich doing it. You’re much, much more likely to achieve revenue about equal to what my friend Roger is achieving. And, perhaps that’s enough for you. Perhaps that’s all you’re looking for. But, if you’re willing to put in more time and work, you could achieve much more. If you’re looking to go into a full-time, 8-hours or more per day, 5-days or more per week endeavor, the sky really is the limit. Multimillionaires certainly have been made in the surplus business industry.

But, what will likely make your efforts much easier — no matter at what level you wish to engage in — is knowing the secrets of the surplus industry. And, the biggest secret is how to locate such surplus sales so that you can begin making purchases of quality goods for pennies on the dollar. This is usually the biggest stumbling block for people looking to get into this line of business. Because of the secrecy involved for reasons that were explained earlier, it can often be difficult if you don’t already know the ropes.

The easiest way is to employ the services of a surplus locating service. These services, such as the one located here, or the one available at this link, provide a service where they will keep you informed of all of the upcoming surplus sources available to you. You can provide them with your area and they will send notices to you whenever a surplus auction or some other such sale is scheduled to take place somewhere within the areas you’ve listed.

Secrets of the Surplus Business IndustryBut, if you don’t want to go that way, it’s going to take a little bit of detective work on your part. The surplus suppliers out there do want to keep bidding competition low in order to keep prices low and attract only the big players that they know will move the merchandise up for sale efficiently and with the least amount of fuss and noise as possible. So, the locations of these sales aren’t made widely known. You’ll have to track down auction houses in your area that handle such sales, contact government agencies that deal in surplus sales, and consistently hound them in order to stay informed of upcoming opportunities. It’s not easy — it’s work. Just like with everything that has the potential to earn you profits — you’ll have to work at it. But, it can be done. And, it can be both rewarding and supremely fulfilling.

Or, you can do what the pros do — what the big players do — invest just a little bit of money in order to make money, and employ the services of a competent locating service to do the dirty footwork for you.