How to Open a Liquidation Bin Store!

Looking to open a bin store in 2023 or 2024? We have the perfect article for you. Here below is a short summary of the steps that can be used as a business plan into opening your own liquidation bin store!

Let’s Begin: Finding & Leasing a Commercial Building

Leasing a commercial building is a crucial step for businesses looking to establish a physical presence or expand their operations. Whether you’re a startup in search of your first office space or an established company seeking a new location, finding the right commercial property is essential for your success. In this article, we’ll explore the process of leasing a commercial building and how online platforms like LoopNet, Facebook, and Craigslist can help you find the perfect space.

Know Your Requirements

Before diving into the online search for commercial properties, it’s essential to identify your specific needs. Consider factors such as location, size, layout, budget, and any special requirements unique to your business. This clarity will help you narrow down your options and make the search process more efficient.

Utilizing LoopNet

LoopNet is a widely recognized online platform specifically designed for commercial real estate listings. It’s a treasure trove of commercial properties from various brokers, landlords, and property managers. Here’s how to make the most of LoopNet:

Create an Account: Start by creating a free account on LoopNet. This allows you to save your searches, receive email notifications for new listings, and access advanced search features.
Refine Your Search: Use filters to narrow down your search based on location, property type, size, and other criteria. This will help you focus on properties that match your requirements.
Contact Listing Agents: Once you find a property that piques your interest, reach out to the listing agent for more information or to schedule a viewing. Be prepared to ask questions about lease terms, utilities, maintenance, and any other concerns.

Facebook Marketplace

Facebook Marketplace has become a surprisingly effective platform for finding commercial properties. Many landlords and property managers list their available spaces on this social media giant. Here’s how to leverage Facebook:

Join Local Groups: Search for local real estate or business-related groups on Facebook. These groups often have members who share commercial property listings.
Utilize Facebook Marketplace: The marketplace itself also features a real estate section where you can search for commercial properties. Use filters to narrow down your options.
Engage Directly: When you find a listing that interests you, you can send a direct message to the seller or comment on the post to express your interest and ask for more details.

Craigslist Classifieds

Craigslist, a long-standing classifieds website, remains a valuable resource for finding commercial properties. Here’s how to make the most of Craigslist:

Navigate to the Real Estate Section: Visit the “Real Estate” section on your local Craigslist website. You can find commercial property listings under the “office & commercial” category.
Filter and Sort: Use filters like location, price range, and property type to refine your search. Pay attention to the “by owner” and “by broker” options to find listings that suit your needs.
Contact Property Owners: Reach out to property owners or brokers directly through the provided contact information. Be sure to ask about any relevant details and schedule property viewings if necessary.

Leasing a commercial building can be a complex process, but with the right tools and a clear understanding of your needs, you can streamline the search for the perfect space. Online platforms like LoopNet, Facebook Marketplace, and Craigslist offer a wealth of opportunities to discover commercial properties. By leveraging these resources and being proactive in your search, you can secure a space that sets the stage for your business’s success. Remember to exercise due diligence, seek legal advice if necessary, and negotiate terms that work in your favor to ensure a smooth leasing experience.

What You’ll Need to Startup Your Bin Store

Starting a retail liquidation bin store involves various startup costs that need to be carefully considered and budgeted for. These expenses can significantly impact your initial financial planning. Let’s break down some of the key startup costs you’ll encounter when opening a store:

Lease Deposit and Rent: The cost of leasing a commercial space is typically one of the most significant startup expenses. It includes a security deposit, which is often equal to one to three months’ rent, and the first month’s rent upfront. Be prepared to pay these costs to secure your location.
Insurance: Various types of insurance are crucial for protecting your store, your assets, and your customers. These may include:

General Liability Insurance: Covers injuries or property damage that may occur on your premises.
Property Insurance: Protects your physical assets, such as inventory and equipment, against theft, fire, or other disasters.
Workers’ Compensation Insurance: If you have employees, this insurance covers their medical expenses and lost wages if they are injured on the job.
Business Interruption Insurance: Provides coverage for lost income and operating expenses if your store is temporarily unable to open due to unforeseen circumstances.

What Else You’ll Need to Plan:

Legal Entity Formation (LLC): Registering your business as a Limited Liability Company (LLC) is a common choice for store owners. The cost of forming an LLC varies by state but typically includes filing fees with the state government. Consulting with a legal professional or using online services can help streamline this process.
Bank Account and Initial Capital: Opening a separate business bank account is essential for managing your finances effectively. Some banks may charge fees for account setup or maintenance. Additionally, you’ll need some initial capital to cover early expenses like inventory, marketing, and utility deposits.
Security Cameras and Systems: To protect your store from theft and vandalism, you may need to invest in security cameras and alarm systems. The cost varies depending on the size of your store and the level of security you require.
Store Buildout and Renovation: Depending on the condition of your leased space, you may need to invest in renovations and buildout to make it suitable for your retail needs. This could include flooring, lighting, shelving, signage, and interior decor. The cost will depend on the extent of the renovations.
Inventory: Purchasing initial inventory is a significant expense for retail stores. Ensure that you have enough working capital to stock your store with products that align with your business plan and target market.
Utilities and Deposits: You’ll need to cover deposits and initial payments for utilities such as electricity, water, gas, and internet services. These costs can vary depending on your location and the size of your store.
Marketing and Advertising: To attract customers to your store, you’ll need to allocate funds for marketing and advertising. This might include creating a website, printing promotional materials, and running local advertising campaigns.
Permits and Licenses: Depending on your location and the nature of your retail business, you may need various permits and licenses. These may include business licenses, health permits, signage permits, and more. The costs associated with these permits can vary widely.
Employee Costs: If you plan to hire employees, factor in their wages, benefits, and any necessary training costs.
Furniture and Fixtures: Furniture and fixtures, such as display racks, checkout counters, and seating areas (if applicable), are essential for creating a welcoming and functional store environment.

It’s crucial to create a detailed business plan and budget that outlines these startup costs and estimates your ongoing operating expenses. This will help you secure financing if needed and ensure that you have the financial resources to successfully launch your retail store. Additionally, consider seeking guidance from financial advisors or business mentors to navigate the complexities of startup expenses effectively.

Building the Wooden Bins

How to Build Your Bins!

Building a wooden storage bin with the dimensions you provided (8 ft long, 2 ft wide, 18 inches deep, and 35 inches high) is a great DIY project. You can source all the necessary materials from Lowe’s or Home Depot. Here’s a step-by-step guide to help you build this storage bin:

Materials You’ll Need:

2×4 lumber (eight pieces, each 8 ft long)
1×8 lumber (two pieces, each 8 ft long)
1×12 lumber (two pieces, each 8 ft long)
2½-inch wood screws
Wood glue
Saw (circular saw or miter saw)
Drill with screwdriver bit
Measuring tape
Pencil
Sandpaper or a sander
Paint or stain (optional)
Paintbrush (if painting)

Instructions:

Cut the Lumber:

Cut the 2×4 lumber into the following pieces:
- Four pieces, each 8 ft long (for the bin’s top and bottom frames).
- Four pieces, each 23 inches long (for the bin’s vertical supports).
- Four pieces, each 18 inches long (for the bin’s side supports).
Cut the 1×8 and 1×12 lumber into 8 ft long pieces for the bin’s sides and front/back panels.

Assemble the Frame:

Lay two of the 8 ft long 2x4s on the ground, parallel to each other, 2 ft apart (these are the top and bottom of the frame).
Attach the four vertical supports (23-inch pieces of 2×4) to the top and bottom frames, evenly spaced, using wood screws and wood glue. This forms the basic frame of the bin.

Attach the Side Supports:

Attach the four side supports (18-inch pieces of 2×4) to the inside of the frame, two on each side, parallel to the vertical supports. These will provide additional stability to the frame.

Attach the Panels:

Attach the 1×8 or 1×12 panels to the front and back of the frame. These panels should be flush with the top and bottom frames and should cover the entire front and back of the bin.
Attach the 1×12 panels to the sides of the frame. These panels should be flush with the top and bottom frames and should cover the entire side of the bin.
Use wood screws and wood glue to secure the panels in place.

Sand and Finish (Optional):

Sand the surfaces and edges of the storage bin to smooth out any rough spots.
You can choose to paint or stain the bin to protect the wood and enhance its appearance. Allow it to dry completely before use.

Position the Bin:

Place the finished storage bin where you want it, making sure it’s level and stable.

Use as Needed:

Your wooden storage bin is now ready to use. It’s ideal for storing various items, whether in your garage, workshop, or any other suitable location.

This DIY wooden storage bin is versatile and provides ample space for organizing your belongings. Make sure to take your time with the construction and follow safety precautions when using tools and materials. Adjust the dimensions or customize the appearance as needed to fit your preferences and storage requirements.

Purchasing Liquidation Lots to Sell

BULQ.com:

BULQ.com is known for offering wholesale liquidation lots from major retailers.
They typically offer both pallet and smaller box lots.
You can find a variety of product categories and conditions.
Shipping options vary, and they offer truckload purchases as well.

Liquidation.com (now Liquidity Services):

Liquidation.com is one of the largest online auction platforms for surplus and returned goods.
They offer a wide range of products and lot sizes, from individual items to truckloads.
Shipping and lot size options depend on the specific auction listings.

eBay:

eBay hosts numerous liquidation sellers who offer both small and large lots.
Lot sizes and shipping options can vary greatly depending on the seller.
Look for eBay sellers with a good reputation and detailed listings for transparency.

GovDeals:

GovDeals specializes in auctions of government surplus items.
They offer various types of goods, including vehicles, equipment, electronics, and more.
Lot sizes vary, and shipping options depend on the seller and the item.

Facebook Marketplace:

Facebook Marketplace has become a popular platform for individuals and businesses to sell liquidation and surplus items.
Lot sizes, shipping options, and availability depend on the sellers in your local area.

Craigslist:

Craigslist is a platform where you can find local listings for surplus and liquidation items.
Lot sizes and shipping options vary depending on individual sellers.

HiBid:

HiBid is an online auction platform that hosts various types of auctions, including liquidation auctions.
You can find a wide range of products and lot sizes, but specifics will depend on the auction listings.

When purchasing liquidation lots, whether it’s from BULQ, Liquidation.com, eBay, GovDeals, Facebook, Craigslist, or HiBid, here are some essential tips:

Always read the listing descriptions carefully to understand the condition of the items, lot size, and any shipping or pickup details.
Research the seller or platform to ensure they have a good reputation and transparent policies.
Calculate potential shipping costs and factor them into your budget.
Be cautious about bidding or buying without thoroughly researching the items and the seller to avoid any surprises.

Keep in mind that the availability of truckloads or less than truckload (LTL) lots will vary depending on the platform and the specific listings. It’s advisable to check each platform directly and browse their listings to find the type and size of liquidation lots that suit your business needs. Additionally, inquire about shipping options and costs when necessary, as these can also differ from one seller or platform to another.

Choosing a Payment Processor

Payment processors play a crucial role in facilitating financial transactions for businesses, both online and offline. Below, I’ll provide information about two popular payment processors, PayPal and Stripe, and discuss their capabilities in terms of integration with cash registers, sales tax tracking, and inventory management. Additionally, I’ll mention a few other payment processors with similar features.

1. PayPal:

Integration with Cash Registers: PayPal offers various integration options for cash registers and point-of-sale (POS) systems. Businesses can use PayPal Here, a mobile POS system, to accept in-person payments. Additionally, PayPal can integrate with popular cash register and POS software, making it versatile for both online and offline sales.
Sales Tax Tracking: PayPal provides tools for businesses to calculate and track sales taxes. Users can set up tax rates based on their location and products sold. PayPal can also generate reports to assist with tax compliance.
Inventory Management: While PayPal primarily focuses on payment processing, it does not offer dedicated inventory management features. However, businesses can integrate PayPal with third-party inventory management software to keep track of stock levels and sales.

2. Stripe:

Integration with Cash Registers: Stripe offers a wide range of integration options for both online and in-person payments. Businesses can use Stripe Terminal to accept payments in-store using compatible hardware. Stripe also has APIs and plugins for integrating with various cash register and POS systems.
Sales Tax Tracking: Stripe provides tools for businesses to set up and manage sales tax rates. It can calculate taxes based on location and product type, helping with tax compliance.
Inventory Management: Like PayPal, Stripe primarily focuses on payment processing. While it doesn’t offer native inventory management features, businesses can integrate Stripe with third-party inventory management software for tracking inventory levels and sales.

Other Payment Processors with Similar Features:

3. Square:

Integration with Cash Registers: Square is known for its in-person payment solutions and offers hardware options like Square Register and Square Stand for businesses. It also provides online payment processing.
Sales Tax Tracking: Square offers sales tax management features, including the ability to set up and apply tax rates. It generates reports for tax compliance purposes.
Inventory Management: Square provides basic inventory management features, allowing businesses to track stock levels and manage product listings.

4. Shopify Payments:

Integration with Cash Registers: Shopify offers a range of POS hardware options and integrates seamlessly with its online store platform.
Sales Tax Tracking: Shopify provides built-in tools for managing sales taxes, including automatic tax calculation and reporting.
Inventory Management: Shopify includes robust inventory management features that help businesses track stock levels, add products, and manage variations.

When choosing a payment processor for your business, consider factors such as your sales channels (online, in-person, or both), the need for integration with cash registers or POS systems, sales tax requirements, and inventory management needs. Evaluate the specific features and costs of each processor to find the one that best suits your business’s requirements and growth plans. Additionally, keep in mind that while these processors offer various features, more complex inventory management needs may warrant dedicated inventory software.

Pricing and Operating Hours Strategies for a Liquidation Bin Store

Setting the right hours of operation and prices for a liquidation bin store can significantly impact your business’s success. In this section, we’ll explore a pricing strategy that adjusts prices per day to clear out inventory effectively. We’ll also discuss how to determine suitable operating hours. By the end, you’ll have actionable insights to implement in your own store.

Flexible Pricing per Day:

One effective pricing strategy for liquidation bin stores is to adjust prices based on the length of time a product has been on the shelf. This approach not only keeps inventory fresh but also encourages customers to return frequently. Here’s an example:

Day 1 (Fresh Arrival): New arrivals are priced at 100% of their original cost. These items are showcased at their highest value, attracting early-bird shoppers looking for the best deals.
Day 2: Reduce prices by 10-20% for items that didn’t sell on the first day. This markdown encourages customers who missed the initial sale to make a purchase.
Day 3: Continue to markdown items by 10-20%. By the third day, prices should be about 70-80% of the original cost. This entices bargain hunters who are willing to wait for further discounts.
Day 4 (Final Sale): On the fourth day, offer significant discounts, such as 50% or more off the original cost. This clears out remaining inventory quickly.

Implementing this pricing structure keeps your inventory moving and creates a sense of urgency for customers to buy sooner rather than later. It also reduces the chances of products becoming stale.

Operating Hours:

Your store’s operating hours should align with your target customers’ schedules and shopping habits. Here’s a flexible example:

Weekdays: Open from 10:00 AM to 7:00 PM to cater to working individuals. Extend the hours during busy seasons or holidays.
Saturdays: Open from 9:00 AM to 6:00 PM to attract weekend shoppers.
Sundays: Open from 11:00 AM to 5:00 PM to accommodate those who prefer shopping on Sundays.
Extended Hours on Clearance Days: On the fourth day of the pricing strategy (the final sale day), consider extending your hours to clear out remaining inventory.

Setting Your Operation Strategy:

Setting hours of operation and pricing strategies that adapt to your liquidation bin store’s unique needs is crucial for success. A flexible pricing structure based on the number of days an item has been on the shelf encourages sales and minimizes waste. Similarly, aligning your store’s operating hours with your target audience’s preferences ensures you capture the maximum foot traffic.

Remember that customer feedback and data analysis can help fine-tune these strategies over time. By implementing these approaches, you can create an attractive shopping experience that keeps customers coming back for more deals while efficiently managing your inventory.

Staffing Your Store: How Many Employees Do You Need?

Running a small store efficiently requires the right number of employees with the skills and qualifications to meet customer needs. Moving forward, we’ll discuss how to determine staffing requirements, where to find suitable employees, the ideal age range and education levels, their job duties, and the typical hourly salaries to consider.

Determining Staffing Needs:

The number of employees needed to staff a small store depends on various factors, including the store’s size, the volume of foot traffic, and the range of products and services offered. In our example of a small liquidation bin store with flexible hours, a basic staffing structure might include:

Store Manager: A store manager oversees daily operations, manages the staff schedule, and ensures efficient inventory management. One store manager is typically sufficient for a small store.
Sales Associates: Sales associates are responsible for assisting customers, restocking shelves, and maintaining the store’s appearance. The number of sales associates required depends on the store’s size and customer flow. Typically, one or two sales associates per shift should suffice for a small store.
Cashier: If your store includes a checkout counter, you’ll need cashiers to handle transactions. A single cashier can manage checkout during regular hours, but you may need an additional one during peak times.
Stock Clerk: Stock clerks focus on restocking and organizing merchandise. One or two stock clerks, depending on the store’s inventory turnover, should be adequate.
Security Personnel: Depending on the location and nature of your merchandise, you may need security personnel to prevent theft or handle security-related concerns.

Finding Suitable Employees:

You can find potential employees through various channels:

Online Job Boards: Platforms like Indeed, LinkedIn, and ZipRecruiter are excellent for posting job listings and finding candidates.
Local Advertising: Utilize community bulletin boards, local newspapers, and social media to advertise job openings.
Networking: Tap into your professional network and ask for referrals or recommendations from trusted contacts.

Ideal Age Range and Education Levels:

For a small store, employees can vary in age and education levels. It’s crucial to prioritize qualities such as a customer-friendly attitude, reliability, and a willingness to learn over age or education. High school graduates, college students, or individuals with relevant retail experience can be suitable candidates.

Job Duties and Hourly Salaries:

Job duties for each position may include:

Store Manager: Overseeing operations, managing staff, inventory control, and ensuring a smooth shopping experience. Hourly salaries for store managers can range from $15 to $25 or more, depending on experience and location.
Sales Associates: Assisting customers, restocking, and maintaining the store’s appearance. Hourly wages may range from $10 to $15 per hour.
Cashier: Handling transactions and providing excellent customer service. Cashiers may earn around $10 to $14 per hour.
Stock Clerk: Managing inventory, restocking shelves, and organizing merchandise. Their hourly salaries can vary from $10 to $14.
Security Personnel: Providing security and monitoring store premises. Hourly wages can range from $12 to $20, depending on experience and responsibilities.

Remember that wage rates can vary widely based on location, experience, and local labor market conditions.

Staffing a small store successfully involves assessing your specific needs, finding employees through various channels, and prioritizing qualities over age or education levels. With the right team in place, your small store can provide excellent service and create a positive shopping experience for customers.

Total Startup Cost for a Liquidation Bin Store

Starting a liquidation bin store is an exciting venture, but it’s crucial to be well-prepared for the initial financial outlay. Before we conclude this article, we’ll break down the startup costs involved in launching your store, helping you understand what to budget for.

1. Rent and Deposit:

Renting a physical space for your store is one of the most significant startup expenses. Assuming a monthly rent of $1,500, you’ll need to budget for the first and last month’s rent as a deposit. This means an initial payment of $3,000.

2. Employee Wages:

Hiring and paying employees is another essential cost. You may have 3-4 hourly employees, each earning an average wage of $12 per hour. If they work full-time, you’ll need to budget for their salaries accordingly. For simplicity, let’s assume $12 per hour for 40 hours per week per employee.

Monthly Salary for 4 Employees: $4,800 (4 employees x $12/hour x 40 hours/week x 4 weeks)

3. Beginning Inventory:

To stock your store with merchandise, allocate a budget for the initial inventory. With a $5,000 budget, you can purchase a variety of products to fill your bins and attract customers.

4. Security Cameras:

Security is vital for protecting your store and inventory. High-quality security cameras can cost anywhere from $200 to $1,000 or more, depending on the number of cameras and their features. Budget accordingly for this essential expense.

5. Payment Processor Setup:

Setting up a payment processor, such as PayPal or Square, involves minimal upfront costs. Usually, payment processors do not charge setup fees, but you may need to budget for any hardware you require, such as card readers or terminals. Allocate around $100-$200 for payment processing equipment.

6. Advertising Budget:

Promoting your store is crucial to attract customers. Allocate a budget for digital advertising on platforms like Facebook, Instagram, and YouTube. With a $500 budget, you can run targeted ad campaigns to reach your local audience and build brand awareness.

Additional Considerations:

Utilities: Don’t forget to budget for utilities like electricity, water, and internet service. Monthly costs can vary widely based on your location and usage.
Licenses and Permits: Depending on your area and the nature of your business, you may need permits and licenses. Research and budget for any required fees.
Store Fixtures and Decor: Consider costs for the bins, shelving, signage, and store decor to create an attractive shopping environment for your customers.
Insurance: Budget for insurance coverage to protect your store from potential liabilities and losses.
Miscellaneous Expenses: Factor in some extra funds for unexpected expenses that may arise during the startup phase.

When budgeting for your new liquidation bin store, it’s crucial to be as accurate as possible to ensure you have enough capital to cover your initial costs. Proper financial planning will set your business up for a successful launch and smooth operations as you grow and thrive in the competitive retail landscape.

In Conclusion:

Launching your own liquidation bin store can be an exciting and profitable endeavor. We’ve explored the key steps and considerations involved in opening such a store, from finding the right location and sourcing inventory to setting prices and managing staffing. By carefully planning and executing each aspect of your business, you can create a shopping experience that attracts bargain hunters and value-conscious customers.

Remember that success in the world of liquidation retail often boils down to adaptability and having a keen eye for finding and securing quality inventory. With dedication and a customer-first approach, your bin store has the potential to thrive and become a local shopping destination for savvy shoppers seeking great deals on a variety of products!