Easy Finance

I’ve always been of the belief that you can’t make much money selling things at garage sales – that you can get a better deal with the tax write off giving things away to Goodwill. I recently ran across an article in mint.com which challenges this belief.

By following the methods in this book, “How to Have Big Money Garage Sales!”, by Cathy Pedigo, the article claims you can earn as much as $1400 selling 95% of your items under $5.

Pricing Pricing is where most garage salers have the biggest issue. Pedigo thinks that people waste too much time worrying if they are over- or under-pricing, when ultimately the real determining factor in profits is determined by how you organize and advertise your “store.”

• Pricing is absolutely the least thing you need to worry about. Instead, trust your gut. “How much did you pay for it? What kind of shape is it in? Is it a well known brand?”
• Keep pricing psychology in mind, starting with recognition that what has sentimental value for you doesn’t mean much to others. Pedigo says psychology does apply when pricing items just below the nearest dollar and leaving off the dollar signs (ie, 9.95), even if that complicates giving change.
• How much you bargain depends on you, but remember that bargaining is a game many shoppers enjoy.
• Some of your shoppers may come from cultures where a refusal to bargain is taken as an insult.
• A lot of sellers drop prices by 50-75% as the weekend wears on. However, if you offer two-for-one, you’ll earn the same income but got rid of twice as much stuff.

Other Tips:

• Marketing. Placing ads ahead of time for your sales in craigslist or other area local bulletin boards really helps. However, the best ad is those neon-bright fluorescent signs with Large Type directing people to your sales.
• Which Day Should You Have the Sale? Saturday is traditionally thought of as “garage sale day”, but if you hold your sale on this day, you will have lots of competition. Often Friday is the better day, as there are fewer competitors and usually good crowds.
• Price Tagging. You’ll spend less time answering questions if goods are clearly marked by price tags or fixed prices apply to everything in a particular box or on a particular table.

Experts at the art of garage sailing – we know you’re out there. If you have any tips you’d like to share, tell us by leaving a comment!

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