If you want to make some extra sideline cash then it’s well worth thinking about going to a bankruptcy or disposal auction. There can be some fantastic bargains… goods you can buy cheaply and sell easily for a quick profit.
Bankruptcy auctions have both a good and a bad side to them.
Bankruptcy auctions are most definitely BAD for the people whose businesses have gone bankrupt. Whose livelihood has gone down the drain. And whose stock and equipment is being sold off at the auction. (It’s kind of bad for the rest of us too, because failing businesses don’t bode too well for the economy.)
But, of course, bankruptcy auctions can be very GOOD for entrepreneurs. Because there can be some very good, almost unmissable buy-sell profit opportunities. To buy up bankrupt stock and equipment for next to nothing and turn a profit on it.
Here are just a few examples of some of the ‘bittersweet bargains’ I’ve found at bankruptcy auctions in the past:
* Boxes of 1,000 (approximately) DVDs from a video rental store. Sold for £45. Surely you could resell these for 50p each?
* An HP laptop, fairly modern design, seen working for £20. Followed by another very similar one that went for £23 for some reason. Had to be a no-brainer for selling on eBay.
* A 23” flat panel TV for £27. Suitable for use as a TV or computer monitor. Double your money with a quick resale.
* A professional stainless steel range cooker, from a closed down restaurant. Went for £150. Apparently they normally cost thousands, even used. Buy and bung an ad in the catering trade press.
* A Ford Transit Connect van for £2,200. I saw a similar one in a dealer’s on the way to the auction for £3,500. A classic buy-sell opportunity.
* 100 assorted anoraks. Children’s sizes, ages 3-5. Went for £95 the lot. Surely must be worth £5 each to resell?
* 172 assorted prints and paintings, some framed some not, from a closed down art gallery. Sold for £280. OK, so I’m pretty sure there weren’t any Van Gogh’s amongst them. But how much would you make if you sold them at a collectables fair for £5 or £10 each?
* All kinds of other assorted bits and pieces. 144 assorted leather designer handbags for £270. 100 pairs of sports socks for £4 the lot. 12 LCD TVs for £620. Even the entire contents of a pub (no drink unfortunately) for a little over a grand! I don’t know exactly what these would resell for, but almost certainly it would be several times what they cost.
The secret of succeeding with bankruptcy auctions is to try and put the emotional side of things to one side. After all, the state of the economy is nothing to do with you (at least I hope it isn’t!) It’s not your fault that this particular business went bankrupt. Someone is going to make an honest profit from the bankruptcy auction. It may as well be YOU.
When I’m talking about making money from bankruptcy auctions I’m not talking about anything complicated… although some people make a very successful business buying and selling at these sales.
Just try something simple…
Buy up some stock, pop a few ads in the local free papers and sell it off. Do a bit of eBaying. Do a bit of car booting. Try a market stall. And the fact is prices are sometimes so low at bankruptcy auctions that you can sell stock off to traders and still make a profit on it. Whatever you do, in most cases at bankruptcy auctions you can hardly fail to turn a profit.
The truth is a few products bought and sold from these sales could turn into a very sweet profit for you indeed.
If you’d like to find out more here’s some more useful information about how to go about buying from auctions: 8 Tips For Successfully Buying Stock At Auction