There are many types and sizes of storage units available to consumers. Storage facilities are providing as many options as they possibly can to meet the needs of their customers. Demand has increased for Climate Controlled Storage, and Portal Storage containers are more popular than ever. The type and size of a storage unit on the auction block should be considered when deciding on your maximum bid for a locker.
While rare and valuable items can be found in any unit, remember that mitigating risk is an important part to success in business. Storage auction profiteers focus primarily on volume, so you should select units that contain large amounts of stuff. Your ultimate goal is to get the lowest price per pound on the unit’s contents. By purchasing high product units as a policy, you directly increase the chance of turning a profit on the goods.
There are many important factors when looking at a unit whole:
Size of the unit – Most facilities offer the same sizes for storage. The size of a unit is one of the most critical elements in the decision making process because amount of product available for sale is directly tied to the unit’s capacity. Ultimately, the size of the unit should set the maximum bid for the unit’s contents.
Type of unit – As mentioned previously, portable storage is becoming an increasingly popular choice. Below are some of the types of units you will encounter, with important factors to consider when deciding on whether or not to buy:
o Climate Controlled: Most facilities offer climate controlled storage units.
Climate controlled units are far more likely to have valuable items, because they are typically more expensive and consumers will only front the cost if they care about the stored goods.
o Outdoor Units: While valuables can be found in outdoor units, home goods stored in these units are more likely to be in rough shape. Look for big ticket items, such as appliances and vehicles before bidding to high.
o Portable Storage: Higher quality goods can be found in Portable Storage because people typically use portable storage containers while moving. As a result, it’s safe to assume that goods in portable storage containers will be better than goods in other facilities because the original owners intended to keep everything in the container. As an added bonus, Portable Storage Containers are typically much larger than the average storage unit, meaning they are capable of holding more product.
o Moving Company Units: Many moving companies offer small units to their customers as a convenience service. Moving can be hectic, especially if a family is moving into a smaller home. Storage units found at moving companies are a
36
lot like Portable Storage Containers. The original owner intended to keep the stuff, but did not have the space. While the units are smaller, they will be more concentrated with higher quality merchandise.
Unit Capacity – The capacity of the unit is almost as important as the size of the unit. A 10x20 unit may be ideal for the storage auction profiteer, but it is only ideal if the unit us being used at maximum capacity. Beware of half full units, because it’s a good indicator that the original owner cleared out the high quality product before letting the unit go to auction.
o 90%+ Capacity: Storage units that are 90% full or more are ideal. Try to win as many of these units as possible
o 65%-90% Capacity: Some people prefer to have walking space in their storage unit. If the facility is 65%-90% full, the unit has plenty of product, but beware.
Do not bid too high, in case it was cherry-picked by the original owners.
o >65% Capacity: If a unit is less than 65% full, buyer beware. Only purchase these units if the bid is low, and you can afford to risk it.
Box Size and Condition – Most storage units contain boxes. The condition of the boxes can be very telling, and it is easy to judge a box’s condition based on the initial view of the open locker. A well-sealed box indicates the original owner took care to ensure the contents of the box went undamaged.
o Small Boxes; Good Condition – Small boxes in good condition are ideal. Small boxes indicate valuable contents, but people also use small boxes for heavier items. Beware containing many small boxes, because the contents of the boxes are likely to be books or documents. Books don’t have the highest resale value.
o Large Boxes; Good Condition – Large boxes are hit and miss. Most large boxes will either contain a number of smaller, less valuable items thrown together or a single larger item. The presence of large boxes should neither deter nor
encourage you to go for a unit.
o Unkempt/Dirty Boxes – Torn, dented or dirty boxes should raise a red flag.
Boxes in these conditions typically mean the contents have been stored for quite some time. While the occasional antique may be found in one of these boxes, most of the product will be dated and worthless.
o Trash Bags – People commonly store “soft goods,” such as clothing or bedding, in trash bags. Product found in trash bags will almost always be thrown in the donate pile, so units filled with them should be avoided.
Unit Cleanliness – The cleanliness of the unit itself can also be very telling. Clean units indicate the contents were well maintained, which means the product will be in better condition. Dirty units can mean one of two things. Try to gauge an approximate date of
37
when the items were originally stored. In your endeavors, you will encounter some units that have sat completely untouched for years. If the unit contains dated
merchandise, such as CRT televisions, this can potentially be a good sign, since it can be assumed that no one cherry picked the unit before letting it go. If the dirty unit contains modern merchandise, it can be assumed that the contents may not be in the best
condition because the previous owner didn’t take care of them.
Below is a breakdown of unit types and sizes, along with suggested bid prices based on the factors listed above. Please note that these are merely suggestions. You must decide which units to buy based on a number of factors, but the table below illustrates the maximum bid you should submit in the following cases.
KEY
MB = Maximum Bid
Climate = Climate Controlled Outdoor = Non-Climate Controlled Portable = Portable Storage Container
Unit Size Cubic Feet* Unit Type MB: (90%+ Full)MB: (65%-90% Full) MB (<65% full)
5x5 unit 200 Cu. Ft. Climate $200.00 $100.00 $60.00
5x5 unit 200 Cu. Ft. Outdoor $100.00 $50.00 $30.00
5x10 unit 400 Cu. Ft. Climate $400.00 $200.00 $120.00
5x10 unit 400 Cu. Ft. Outdoor $200.00 $100.00 $60.00
10x10 unit 800 Cu. Ft Climate $800.00 $400.00 $240.00
10x10 unit 800 Cu. Ft Outdoor $500.00 $250.00 $150.00
10x20 unit 1600 Cu. Ft. Climate $1,200.00 $600.00 $360.00
10x20 unit 1600 Cu. Ft. Outdoor $900.00 $450.00 $270.00
7x7x8 container 448 Cu. Ft. Portable $750.00 $375.00 $225.00
8x8x12 container 768 Cu. Ft. Portable $1,000.00 $500.00 $300.00
8x8x16 container 1024 Cu. Ft. Portable $1,500.00 $750.00 $450.00
*Cubic Feet Calculated based on industry standard of 8 feet, for the height of a storage unit.
38