Guide to bidding on storage auctions in Melbourne
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Beginner`s Guide to Bidding at Storage Auctions

August 08, 2017
 

If you`ve seen the television program Storage Wars, you have firsthand knowledge of the treasures people sometimes find when they buy the lockers of Self Storage customers whose accounts are in default. Are you thinking of attending storage auctions in Melbourne as a hobby or potential business? Prepare yourself for a difficult learning curve. Bidding on Self Storage lockers is now more popular than ever. Turning a consistent profit requires a good eye for value, smart bidding, and reliable resale channels. These tips can help.

Set your expectations modestly 

People default on their Self Storage rentals for many reasons. In some cases, a person may choose not to pay the delinquent storage charge because the bill exceeds the value of the items in the locker. Yes, some storage lockers do contain lost treasures. Most don`t. Bid only on what you can see, and understand you may occasionally lose money when you bid on storage auctions in Melbourne.

 

Budget accordingly

Some Self Storage companies allow credit card payments at auctions, but most require cash. It`s wise to bid on storage lockers with cash only anyway. That way, you won`t bid more than you can afford to lose. Most storage lockers contain nothing of real value. You wouldn`t want to compound your bad purchases by going into debt to pay for them.

 

At most storage auctions in Melbourne, you`ll also need to pay a cleaning deposit of around $100. You`ll get the deposit back after you empty and clean the locker.

 

Have a plan for your items

Many Self Storage lockers contain heavy items such as furniture, appliances and tools. You`ll have to move these items yourself if you don`t want to forfeit your cleaning deposit and tarnish your reputation as a bidder. Before you can even begin to think about selling your items for a profit, you`ll need to have a plan for moving and storing them. If you need to rent a moving van or hire help, remember those costs will add to the expense of buying a locker. If you don`t have a plan for selling the items that you see in a locker, you should probably bid on a different one. Some common selling strategies include:

 

  • Operating a brick-and-mortar store
  • Selling online on venues such as eBay and Amazon
  • Donating items to goodwill
  • Placing advertisements in local newspapers
  • Forming relationships with local business owners willing to buy certain items

 

Keep detailed records 

If you intend to generate a consistent profit from buying Self Storage lockers, you should keep detailed records of the items you buy and what you eventually earn when selling them. Don`t forget to track expenses such as fuel, hiring movers and renting moving vans. If you sell items online, you`ll also need to record selling fees and shipping costs. Tracking your expenses and profits accurately tells you if your operation is profitable and helps you determine the types of items that you are most successful in selling.

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