Bin stores are currently very popular businesses to open. Many times people that want to open a bin store have a background in reselling, retail arbitrage, and liquidation purchases. Reselling items can be very successful, and moving on to purchasing pallets and truckloads of discounted inventory is a good next step. Deciding to open a store is a huge undertaking.
There are new bin stores opening often, but just as quickly as new stores open others close. A bin store is a very risky business, but that does not mean that you are destined to fail. It will just require some open mindedness, experimentation, and trial by error. A solid business plan is crucial to success and making a profit. This is a very cash heavy business, so you are putting money on the line opening a bin store.
What Is Needed To Open A Bin Store?
Money – Funding is the most important thing since this is an expensive business to run. Do you have the cash already, will you need loans, will you have a business partner?
Set Up Your Business Entity and Get Necessary Licenses
Rent Your Space – This expense will vary a lot depending on where you are located and the space you rent. Utilities will be another expense to consider. If you do not have a loading dock, receiving your pallets will require extra help such as a liftgate or a ramp.
Build or purchase bins
Purchase Necessary Supplies – Pallet jack to move inventory, pallet racks to store inventory vertically, forklift. What you need will vary with the size of your operation, but these are some commonly used bin store supplies. You will also need both outdoor and indoor signs.
POS System – A point of sale system is needed so you can accept payments from your customers. Some bin stores accept electronic payments only which makes the POS even more important.
Inventory – Good, reliable, affordable sources of inventory will make or break your business. Shipping costs will also add to the total cost of goods.
Insurance – Very important to have, will vary depending on your location.
Security System – Theft is always a concern with any business. Cameras can be used to monitor customers and also your store when closed.
Hire Employees – Trustworthy employees are a must have. You also will need to decide what their roles will be. If you will not be active in managing the business, you need to hire someone to do that.
Marketing and Advertisement – Build a website and join all the social media you can as a start. Paid advertisements may also be helpful.
How Much Does It Cost To Open A Bin Store?
As you can see, there are quite a few expenses when operating a bin store. To open a bin store, it is safe to say that $25,000 would be the bare minimum. Having $40,000 or more would be a safer amount, since you will need to purchase inventory multiple times per month, and you need constant cashflow to do this. It is also a good idea to have money in reserves.
Truckloads and pallets of inventory have gone up in price, while going down in quality at many sources. You may get a bad load of goods occasionally, and if you do not have any money tucked away your store can quickly go out of business.
This article is meant to give you a good start if you are considering opening a bin store. This is probably not all encompassing, but with any business the unexpected will pop up. If you do decide to start a bin store, best of luck and drop a comment so we can add you to our bin store directory!