Shopping with Uncle Sam — A Breakdown of Government Auctions
A Retailer's Bargain Paradise...?
You've probably heard about the amazing deals you can find at government auctions — the planes, trains, and automobiles your neighbor's uncle's cousin picked up for a song. But how true are these stories? Are government auctions really a good source for purchasing products for resale? The answer to that is, they CAN BE, but to find those good deals, you have to understand what you are doing.
Where Do Government Auctions Get Their Products?
Government auctions can be held online, live 'in-person', or sealed bid. They acquire their products from two main sources:
Product Sourcing Tip 1: Research before you bid.
If you source products through government auctions to resell online, make sure you know the market value of the products before you place any bids. The key to not overbidding is to research the items ahead of time. Most government auctions will publish a list of available items two to three weeks prior to the auction. And that's when you need to start your homework.
Blue Books are a great source for researching product value. There are price guides out there for basically anything you're interested in. Some of the most popular ones are:
Once you figure out the market value of the goods that interest you, just subtract the costs of reselling those goods, and the profit you hope to make. The result is your top bid for the item. You absolutely need to know your top bid for an item before the auction starts, or you may get caught up in the bidding and end up paying far more than it's worth. Know your maximum bids, and stick to them.
The bottom line in capitalizing on government auctions is that you have to be prepared. Says Aronovich, "You make your money when you buy, not when you sell. If you take the time to study things out and know what you're doing, you can walk away with potentially a lot of room to profit."
BIOGRAPHY: Product Sourcing Radio is Created and Hosted by Chris Malta and Robin Cowie of WorldwideBrands.com, Home of OneSource: The Internet's Largest Source of Genuine, Factory-Direct Wholesalers for online sellers. Click Here for more FREE E-Biz & Product Sourcing info!
A Retailer's Bargain Paradise...?
You've probably heard about the amazing deals you can find at government auctions — the planes, trains, and automobiles your neighbor's uncle's cousin picked up for a song. But how true are these stories? Are government auctions really a good source for purchasing products for resale? The answer to that is, they CAN BE, but to find those good deals, you have to understand what you are doing.
Where Do Government Auctions Get Their Products?
Government auctions can be held online, live 'in-person', or sealed bid. They acquire their products from two main sources:
- 1. Goods they seized due to criminal activities or delinquent taxes.
2. Goods an agency of the government has, but no longer needs.
Product Sourcing Tip 1: Research before you bid.
If you source products through government auctions to resell online, make sure you know the market value of the products before you place any bids. The key to not overbidding is to research the items ahead of time. Most government auctions will publish a list of available items two to three weeks prior to the auction. And that's when you need to start your homework.
Blue Books are a great source for researching product value. There are price guides out there for basically anything you're interested in. Some of the most popular ones are:
- • Automobiles — Kelley Blue Book (www.KBBb.com )
• Electronics — Orion Blue Book (www.OrionBlueBook.com )
• Antiques — Kovels Antiques and Collectibles Price Guide (www.Kovels.com )
Once you figure out the market value of the goods that interest you, just subtract the costs of reselling those goods, and the profit you hope to make. The result is your top bid for the item. You absolutely need to know your top bid for an item before the auction starts, or you may get caught up in the bidding and end up paying far more than it's worth. Know your maximum bids, and stick to them.
The bottom line in capitalizing on government auctions is that you have to be prepared. Says Aronovich, "You make your money when you buy, not when you sell. If you take the time to study things out and know what you're doing, you can walk away with potentially a lot of room to profit."
BIOGRAPHY: Product Sourcing Radio is Created and Hosted by Chris Malta and Robin Cowie of WorldwideBrands.com, Home of OneSource: The Internet's Largest Source of Genuine, Factory-Direct Wholesalers for online sellers. Click Here for more FREE E-Biz & Product Sourcing info!
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