Estate sales business

Time to Considering Starting Your Own Business:

Estate Sales Business

When someone dies the family of the deceased may not want to handle the sales of the personal items themselves, an estate sale is the key to getting the most from the estate. This is especially true if you are dealing with collectable or old items.

It will be your job as a professional estate sale company to relieve as much of the headache and heartache that goes with disposition of the estate's personal property for the relatives of the deceased.You will charge between 25% and 35% of the gross sales for your services.

The first thing you want to do is save everything that can be sold. Do not try to out guess what might sell as it all will sell at some price. You will inventory the items, price each item and clean the items.

You will be responsible for setting up and operating the sale. Advertising, yard and direction signs, pricing and staffing are a few of the duties preformed by an estate sale agent. You will need a DBA and a sales tax permit. Staffing is normally done on a independent contractor basis with the help you hire getting a 1099 at years end. More about business set up at business basics. You will also need a sales tax permit, tax exemption forms and you need to get set up to take credit cards.

If the buyers see a professionally run sale with the merchandise properly displayed, each item clearly marked, they are much more likely to pay higher prices and return the following day as well as tell their friends about your sale and your business.

You will need access to reference books for pricing, some time spent at book stores visiting antique shops and other estate sales will teach you a lot. Allow extra time for your first few sales so that you have time to research prices.

Work for someone in the business for three or four sales to learn what to do. Get a copy of the contract they use with their customers to use as a guide in preparing your own. To avoid legal disputes you want a signed sales contract with the estates executers ’ signature.

Advertising is necessary if your estate sale is to be profitable. Invest in good signs, no homemade signs. Use plastic “stake type” signs with large block letters that are easy to see; yellow signs with black letters or red signs with white letters. In most cases include directional arrows on each sign and that they are facing in the correct direction. All signs should have a place for you to write in the address with erasable markers. Three days before the sales event post the signs in about a four-mile radius of the sales location. I saw one sale were each yard sign had a holder with a map to the location affixed to the sign, a great idea.

The more money invested in advertising the more and better quality of buyers you will attract. If possible, advertise the full week before the sale. Ads should be placed in all the major (and neighborhood) newspapers. If cost permits include directions in the ad or at least the nearest cross streets. List some of the items in the ad that might be unusual or with extra appeal.

Setting up and holding estate sales is time consuming. They can take a week or two to get ready. Most sales are held Thursday through Saturday. You will need enough staff to prevent theft and price switching.

Only one person should be allowed to handle the cash and only one person permitted to mark the price down on an item to make a sale. Allow no markdown of prices for day one of the sale and I prefer 10% each day there after. If you allow a day four you could then go to 50% off on that day.

Security is an issue that needs consideration. For large sales a security guard is recommended. Other concerns are liability insurance carry at least one million dollars and request that the homeowners maintain the house insurance. Have only one way into the sale and out again to prevent theft. Train all staff members to look for any thing that might be a fire hazard or a trip hazard. Remove cash form the sale location every few hours.

Have all customers fill out an address card to be added to your mailing list for the next sale.

Your business will grow over time, customers will find out about you from your advertising and attending your sales. Yellow page ads are helpful. This is a business that starts out slow and gets better each year.

How much can you make? I heard if one lady who works about have the year and earns over $40,000 per year. I know of another company that also has an antique store with their estate sale business and they got rich doing estate sales.

I have only given you enough here to get you thinking and tried to highlight the major areas of concern. Estate sales can be a lucrative and rewarding business that takes little capital to start.

If you are running a business and have been successful at it, and would like to share your experiences with others, please E-mail me.

"The most important thing you can do to get rich, is to work at it every day "
Jim Glasgow