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Start a Business Selling Government Surplus
by Dean Novosat
Did you ever wonder what happens to all that government equipment that is purchased each year by federal, state, and local governments? They don’t just throw it away! By law, all unused and out-dated equipment must be sold back to the public at a public auction! That’s right. Everything is available to you and I the American taxpayer. There are primarily two ways that the government does this: on-site auctions or online auctions.
At an on-site auction, the government agency disposing of the property must usually post a public notice about the auction such as the location, date, time, and items to be auctioned off. There is usually an inspection period, especially if there are high-priced items that are to be auctioned off. Bidding is usually open to anyone, but you generally must pre-register on-site at the auction to bid. On site auctions may include items like used vehicles, boats, aircraft, computer equipment and military surplus. Some of the items are new, most are used, and a small percentage of it is junk.

Online Auctions are available to anyone with an internet connection and can be found on various website. The federal government typically uses the GSA auction site at gsa.gov/auctions. The military uses govliquidation.com. State and local governments may have their own websites. You may need to call your local government agency to find out how they handle surplus property.

The fun part is actually bidding and winning items. You can easily purchase things at 80%-90% off of retail! I personally purchased a color laser printer at 10% of it’s value! Granted, I needed to drive 3 hours to pick it up and I needed to clean it once I got it home, but it works flawlessly.

The business part of the equation is in purchasing large lots of equipment. I personally buy and sell large quantities of computer and office equipment. You can purchase computer and monitors by the skid load! I resell to friends and neighbors who get a good deal as well. I can sell them equipment 50% off of retail and still double my money! The local government auctions usually have the best deals as there are typically fewer bidders competing against you. I purchased $12,000 worth of computer equipment for $65! I also picked up a conference table and beautiful retro conference chairs!

Remember though, to bid with your head and not above it. Research carefully what you are interested in and what it would bring in resale. Set a firm price in your mind and don’t go over that price. Don’t ever get caught up in the heat of the moment when the bidding starts going crazy! Take a step back and re-evaluate before you pay more for something than you wanted to.
Dean Novosat regularly attends local government auctions and participates online. Much of what he wins, he resells. He has several informative websites including http://www.buy-sell-gov-surplus.com

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Three Killer Strategies For Finding Wholesale Products

Copyright 2005 Jeff Yancey

Finding good wholesale products and sources for your business can be one of the most difficult tasks that you face when starting a new enterprise.

It can cost you a ton of time and money. But there are some things you can do in your search for wholesalers, liquidators, drop-shippers and other wholesale companies to make sure that your searching doesnt leave you empty-handed.

There are lots of ways to locate wholesalers, but here are three great strategies to get you started:

STRATEGY #1: Start At The Top and Work Your Way Down.

If you already know the manufacturer of the product that you are searching for at wholesale, then the manufacturer is the first company you need to contact.

Now, maybe you are just starting out and your company is too small to deal directly with the manufacturer or maybe you dont have the money to buy wholesale in large quantity. Thats OK, you still need to contact the manufacturer first. Even if you want to buy directly from them, they may not sell to you, they may send you to their authorized wholesale distributors.

They may also be able to send you to a dropshipper who could dropship the products directly to your customers so you dont have to stock any inventory. It will depend on the company. Either way, your goal is to find out where you can purchase their products at wholesale prices.

When you call them, be sure to tell them the name of your business. They dont sell to individuals just looking for "good deals." Thats why they have retailers.

For example, your conversation might go something like this: They Say: "Good Morning, ABC Manufacturing how may I direct your call?" You say: "Good Morning, This is YOUR NAME with YOUR COMPANY NAME. Im in charge of wholesale purchasing and we are looking to add some of your products to our store. Who would I need to speak with?" From there, you should be well on your way to finding out where to get those products at wholesale.

STRATEGY #2: Contact Deptartment Stores and Retail Outlets About Their Overstocks.

Depending on what type of merchandise you are looking for, strategy #2 may be very beneficial for you. The first thing to do is to contact the home office of the stores that are retailing the product lines you are interested in. This may take you several phone calls to get somebody who knows (or who cares) but it will pay off for you.

Persistence is the key here. At first you will be talking with the receiptionist (who may be more interested in doing their nails or getting back to that trashy novel they are trying to read on company time.) But keep after it until you get the department that you need. What you are wanting to find out is who purchases their overstocks, liquidation, returns and closeout merchandise.

Many department stores sell to wholesalers and "jobbers" who in turn will sell to you on a wholesale level. The wholesaler / jobber will likely buy in bulk for way below wholesale and thats why they are able to still sell to you at wholesale prices. In some cases you may be able to buy the overstocks directly from the store if that is what you want.

STRATEGY #3: Attend A Wholesale Trade Show.

Yes, this one will cost you some time and money. Believe me, I know. Ive attended more than one and I have the receipts to prove it. But if you go to a good show, the contacts that you come away with could be priceless to your business.

You will also return with many new product ideas that you never even thought of. And best of all, if you go to an industry-respected show, you know you will be getting real wholesale contacts. There are several wholesale tradeshows throughout the United States during the year.

If you dont have the time or money to visit a wholesale trade show or do all the research and phone calls, then I have some good news for you.

In conclusion, With some persistence, phone calls and some leg-work, you will start to build a list of wholesalers from which to begin your business. I wish you much success!

Jeff Yancey is the author of the highly-acclaimed "How To Build A Website In 5 Days" at http://www.vaultdatacenter.com/html.htm Jeff also operates several websites including a very popular online wholesale directory at: http://www.wholesaletoyouremail.com You may contact Jeff Yancey at: info@hiddenvault.com
You can access my wholesale sources and dropshipper database on my website right now at: http://www.wholesaletoyouremail.com

 

 

 

 

 

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