Buying in bulk, looking for possible pitfalls.

This is my first post, but I know to do my research, which I have.

I am buying in bulk from estates. I will reuse, resale and recycle everything possible and part of it will obviously be scrapping non working items. Here is the big question.

What would be a loss if I purchase at $.10 per pound?

I can make huge mark up on clothing and working items, and I believe i can make a small profit on most non working appliances. The only thing I believe would be a total loss would be old, non working televisions. Can you think of anything else that would not be worth the trouble when thinking of regular homes and scrapping at $.10 per pound? thanks in advance.

Vic from Jersey

If I were going to do this, I wouldn't buy by the pound. These people don't usually deal with that type of selling anyway. You'd have to be good at estimating what you can get out of the lot, and just make an offer based on that.

Like Ryan sez ^.

You sound like you are prepared to get everything from the piggy but the squeak, and that's a h*lluva good start.

Even old TV's (and monitors) have some residual value, if you want to take the time to salvage copper and circuit boards out of them. Have a look at some of the old threads here for how to gut them. Just make sure you have a home for the left over TV tube and housing' cause its an potentially costly albatross around your neck if you cant get rid of them. But you are not likely to get many in each estate...maybe 2 or 3 from a household?

Speaking of environemental issues, you need a plan on what you can do with old stuff you may find in the back shed. For example, I found a very old bag of orchard pesticide once...."arsinate of lead". Hully crap!! Thank god for hazardous waste dropoffs!!

I've heard from some guys who tried auctioning estates is that you need to be VERY tactful saying to the relatives what old spinster aunt Fred's stuff is worth to you. Don't downgrade it. Don't tell them its all shzt. So a single number--how much cash you would offer them, has the least chance of pzzoff value to them. Some may be insulted that granny's stuff is only worth a dime a pound.

In this down market, you're doing the right thing...sell everything for better than scrap if you can!!!

Keep us posted on how it goes!! Photos are nice!!

Jon.

Thanks so much for the responses. I am stuck on the per pound model for a few reasons, and I know I will push some customers away, but so do the overpriced companies. I have a market that I will go after, and taking everything at a flat price per pound is my angle. I was just wondering if there was an item that would be a major money loser at that price.

Beds. Tvs. Junk. Wood. Non reusable/sellable furnature. Etc.

And at the current steel prices, you could loose a lot if there is a lot.

But, at that price, if you sell a few good items i cant imaging you going in the red.

Your saying your willing to take the good with the bad. I like your angle. I would make sure you do the math. If a estate if garment heavy, and the cloths are old, then you may need to re-think the pricing. If the house is full of "broken down old particle wood tv entertainment center", then simple, don't bid on it. But this will take a lot of thinking, you will need to have a very good outlet for the "crap". Also don't be stuck on the .10 Lbs. If your going to work this way you will need to do ALOT of planning, my 2 cents. Good Luck

You might be wanting to sell some of these things by the pound after buying them by the pound, but you would just have to buy some of the stuff. There is a lot of trash and junk that estates want gone as well as Parker said. Also as Jon said, people don't want to be lowballed so selling that antique table set for $20 might not be attractive. People hoard, it just happens. Tons of attic, garage, and shed stuff that is just trash. You could be paying hundreds of dollars for stuff that you have to pay again to dump. If you pick and choose, then the deal doesn't sound so attractive to them. I stick by my advise on offering a set price.

Also how long would it take for you to weigh up an entire estate?

Originally Posted by vicpell

This is my first post, but I know to do my research, which I have.

I am buying in bulk from estates. I will reuse, resale and recycle everything possible and part of it will obviously be scrapping non working items. Here is the big question.

What would be a loss if I purchase at $.10 per pound?

I can make huge mark up on clothing and working items, and I believe i can make a small profit on most non working appliances. The only thing I believe would be a total loss would be old, non working televisions. Can you think of anything else that would not be worth the trouble when thinking of regular homes and scrapping at $.10 per pound? thanks in advance.

Vic from Jersey

I can think of a whole lot that could be a loss. Do you have a textile buyer for all of grannies old clothing? Have you ever considered the junk that may be in a rodent infested basement or attic? What about a basement with water and or humidity issues? Are you prepared to pay 10 cents a pound and have to get a 40 yard dumpster? Do you have a paper buyer?

I speak from experience here. Had a guy call last year to remove metal from his fathers house. House had 3 feet of water during T.S. Irene and had never been properly dried out. Look up the term "Collyer's mansion". That will give you an idea of the inside of the house. I did make some money taking out metal, tearing apart two campers and hauling junk. As of last fall, the house was even close to being empty. Had I paid a penny, I would have lost thousands. I took over 5 tons to the dump (at $95 a ton), He rented a 10 yard dumpster and a 30 yard dumpster (about $900). Again, he is not even close to being done.

I don't mean to rain on your parade, but you need to seriously rethink your strategy.

Don't buy sight unseen. Last thing you want is 5 dumpster fee"s for a horders paper. Also I'd just do an estimate instead of by the lb. good luck and don't forget to consider the time they give you to clear out the junk.

OK. I may have given the wrong idea here. I wont be buying anything site unseen. I have a textile buyer that I can unload at coast for anything that doesn't sell at my rummage sales. Furniture is hard to lose money on, as long as it is in decent condition. If the customer wants "junk removed" then they may have to call a junk or actually pay someone to take it. My angle is to offer a solution to offset costs for an actual junk removal and to unload their extra stuff. In my area people will pick up scrap for free or charge an arm and a leg to remove junk. When you donate items, you still have to collect them and drive them out and even they wont take some things. Im going after a market that will let me in the house and possible purchase a lot of sellable items at a low price for the convenience of coming in and doing all the work.

I am able to unload decent furniture for good margins to college kids and lower income in the area. I did not think of a paper buyer though. I will also be paying closer attention to my scrap prices near by and see if over the long run I would lose a lot for just scrap, but to get into someones house for items that I can market up a lot, I may take a small hit on some metal.

Thanks so much. I definitely will try and work on relationships because I can see this as big money down the line

Unless it a high end estate, I charge to remove.
You end up warehousing a lot of stuff hoping to recoup your investment.
There's a lot information to consider. Your only one that knows what your specific situation is. If you got storage space and a ready market than you may make it work.
If your into flea markets and have I good understanding of how they work you do OK.
Its a lot of planning involved in a successful flea market business.
Good luck