Shopping With Uncle Sam - A Breakdown Of Government Auctions - By: Entrepreneur Magazine EBiz Radio Show

A Retailers Bargain Paradise?

We have all heard about the amazing deals you can find at government auctionsthe planes, trains, and automobiles your neighbors uncles cousin picked up for a song. But how true are these stories? Are government auctions really a good source for purchasing products for resale?

The answer to that is they CAN BE, but you have to know what you are doing.

Where do Govt. Auctions get their products?

Government auctions are can be held online, live in-person or sealed-bid. They acquire their products from two main sources-

1.Goods they seized due to criminal activities or delinquent taxes.

2.Goods an agency of the government has but no longer needs.

According to Ian Aronovich, president and CEO of http://www.GovernmentAuctions.org , the reason that the auctions can provide such great deals is that the government either attained [the items] for free or cheap and because the government does not have a traditional profit like a corporation does. Theyll sell to the highest bidder even if theyre getting less than market value.

Product Sourcing Tip 1: Research before you bid

If you source products thru government auctions to resell online make sure you know the market value of the product before you bid. The key to not overbidding is to research the items ahead of time. Most government auctions will publish a list of available items 2 to 3 weeks prior to the auction. And that is when you need to start your homework.

Blue Books are a great source for researching product value. There are price guides out there for basically anything you are interested in. Some of the most popular ones are:

AutomobilesKelley Blue Book. (http://www.kbb.com )ElectronicsOrion Blue Book.

(http://www.orionbluebook.com )AntiquesKovels Antiques and Collectibles Price Guide (http://www.Kovel.com )

Product Sourcing Tip 2: Set a bidding limit

Once you figure out the market value of the items that interest you, just subtract the profit you hope to make. The result is your top bid for the item. You absolutely need to know the maximum amount you are willing to bid on any item before you go to the auction or you may get caught up into paying much more than an item is worth. Know your maximum bids, and stick to them.

Chris Malta and Robin Cowie of WorldwideBrands.com are the Writers and Hosts of The Entrepreneur Magazine EBiz and Product Sourcing Radio Shows. Click Here http://www.worldwidebrands.com/EMRinfo for more FREE eBiz info from Entrepreneur Magazine Radio!

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