Case # 2: On the other hand, imagine that you have acquired a new and modern refrigerator with metallic finishes to breathe new life into your kitchen. The change is fabulous but now you need to get rid of the old refrigerator, which by the way, still works perfectly.
The Solution: go to a fine furniture auction store.
And it is that ingenuity and simplicity are probably the primary qualities of this interesting business where people can go to get rid of their furniture and household items that are still in good condition and still get some good pesos for them.
At the same time, other people will find a great variety of articles that for a price much lower than what a new one would cost, they can take what they are looking for in very good condition.
Imagine a place where you can go and find beds, microwave ovens, living and dining room furnishings, televisions, computers, desks, office furniture, desks, lamps, mirrors, printers, displays, etc.
What is the business
Basically a used furniture auction store It consists of offering the used furniture buying / selling service that customers can see, touch and try before buying.
You offer the interested seller the possibility of receiving their furniture on consignment to resell and earn for them, saving the time and work related to the sale in exchange for a commission.
You offer the buyer a variety of furniture of different kinds, used but in excellent condition that they can get at a very good price and with the possibility of haggling for them to get the best price.
What do you need to set up an auction shop?
The most important for the assembly of this business It is the income of a warehouse that can be small at the beginning, it can even be a house and as you grow and promote your business, you can grow and rent larger warehouses.
It will be located in areas close to residential areas, it must have a parking area and be equipped with a security and alarm system. This will surely be the most expensive item in your business.
Second, you will also need the support of one or two assistants for the mobilization, revision and accommodation of them within the warehouse. As well as guard and surveillance personnel especially at night.
Third, you will need a promotion budget that is essential to publicize your business and that people can start visiting it.
Business Advantages
- You do not need to invest in the product since you receive it on consignment
- You do not need to offer guarantees as the product is sold “as seen”
- You do not need freight payments since the buyer takes the product to your warehouse and the buyer removes it from it.
- You don’t need to deal with suppliers
- You do not need to do collection work because the payment is immediate and regularly in cash
- Payments for services like water and electricity are minimal
How Is Income Generated?
The fundamental mechanics is to receive a piece of furniture on consignment for resale purposes. The base price is determined by the owner (seller) and on this you can determine a final price adding between 20% to 40% as allowed by its quality and condition.
The furniture is integrated into the inventory in the warehouse so that the public can see it and eventually bargain the price. In these cases, if the client (buyer) haggles over the price, you simply contact the owner and raise the possibility of an interested party requesting a discount. If the owner accepts the reduction, then the furniture is sold for a lower price but maintaining the margin or even, reducing it a little if you want to promote immediate sale.
Example (prices in us $)
They bring you a medium-use fine dining room furniture in good condition for which the owner wants to receive $ 800. You add 30% and the sale price would then be $ 1040.
A few days later, a customer is interested and tells you that they would like to buy it but that they only have $ 900. So you immediately contact the owner and let him know that the client is requesting a rebate and you propose that he leave it to you at $ 700 so that you still have a reasonable margin. The owner accepts and you sell the furniture for $ 900. Your client earns $ 700 for worthily disposing of the furniture and you get $ 200 for your pocket.
Even if the owner hadn’t given in or asked for a little more, you’d have enough room to negotiate and earn what you consider a good commission for your work.
Of course, shipping or freight costs are charged separately and are borne by the buyer.
Target market
Fundamentally, this type of business is focused on a medium-high market segment since it regularly works with fine furniture or household items in good condition, for which it is the people in this segment who have the ability to pay for this kind of furniture.
Complementary services
Some of the services that you can offer as an added value for your clients (both buyers and sellers) are:
- Basic repairs to appliances
- Woodworking touch-ups and repairs for wood furniture
- Freight and home delivery
Plus ideas and business plans:
