7 Ways to Boost Profits at Your Next Yard Sale
Dear Rich Lifer,
How do you sell a $500 watch? Display it next to a $17,000 watch!
If you think we’re kidding, we’re not. This is exactly what Apple did.
This is tip #1.
When Apple unveiled their 18-karat gold Apple Watch Edition with sapphire crystal glass, they knew not many people would pay $17,000 for a digital watch.
Anyone spending that kind of money would likely choose a mechanical watch that holds its value longer.
But, merely having the luxury piece in their lineup makes their flagship $499 Apple Watch seem like a steal.
You can use the same tactic at your next garage sale. For example, say you have a perfectly good lawnmower that still works that you think is worth at least $50.
Instead of pricing the lawnmower at $50 and leaving it to chance, place a kayak or some other large item next to it and price it aggressively.
Now that $50 lawnmower looks like a steal sitting next to a $500 boat.
This is called price anchoring and it’s just one psychological hack that can boost your profits.
Today we’re going to share six more ways you can maximize garage sale profits.
Simplify the decision to buy
When people are presented with too many options they tend to choose nothing at all.
We’ve talked about this before with respect to choosing employer-sponsored 401(k) plans. If there are too many options to choose from, and even if the employer is matching contributions, employees won’t enroll.
The same behavior applies to yard sales. If you have a bunch of clothes you’re trying to sell, only display a few items at a time. As the items sell, replenish your stock.
By simplifying the number of options your customers have to choose from, there’s a higher likelihood of them choosing an option over none at all.
Bundle to increase cart value
If the goal of your next garage sale is to declutter, here’s a simple way to get rid of a bunch of your stuff while maximizing profits.
Instead of pricing similar items individually, incentivize bulk buys. For example, say you have a bunch of coffee mugs. You can price each mug for $1 or you can offer 3 mugs for $2.50.
You might think you’re losing 50 cents in this exchange. You might be if your customer was planning to buy 3 mugs anyway. But if someone really only was going to buy 2 mugs, they might take you up on the offer by choosing a third to score a deal.
It’s win-win since you get rid of more junk while bumping up each customer’s order value.
Let your customers pay what they want
When you have items that you know won’t sell for much, try a pay-what-you-want pricing strategy.
For instance, imagine you have some costume jewelry you think you can only sell for $1. Knowing that most garage salers carry around wads of dollar bills, ask them to make you an offer.
You might get more than you expect. Alternatively, you can always price the item $1+ giving people the option to pay you a minimum of $1 or more.
You’d be surprised what the power of suggestion can do.
Stage your wares
Imagine you’re driving by two garage sales. On one side of the street, you see a bunch of junk scattered around the front lawn, with boxes filled with clothes and trinkets.
And on the other side of the street, you see tables with goods carefully organized, racks with clothing hung, and large pieces of like furniture together.
If you only have enough time to browse one sale, which one would you go to?
We hope you say the latter because that’s what most people choose. Even though garage sales aren’t the fanciest of affairs, a little effort in presentation goes a long way in attracting more customers.
Reprice the lazy way
Everyone going to garage sales loves knowing they got the best deal. Toward the end of the day, as traffic dies down, you should consider repricing the items left over.
Instead of peeling off the old stickers and replacing with new, just place the new price below the old one and strike through the old price.
This way shoppers can see what they’re saving right off the bat. Retailers use this trick all the time. If you have different colored price stickers to call attention, even better.
Give a final offer discount
What you don’t want to have happen is people walk away without buying anything.
If that happens, you’re stuck driving the leftover items to your local donation store or they end up back in your house. Either way, you miss out on making some money.
One last resort move you can make if you see people walking away is offer them a percentage off all the items they choose to buy,
Save this for at the end of the day when you’re desperate to get rid of the scraps. Anyone on the fence, will instantly be more interested in opening their wallet if they think they can get a bargain.
Garage sales are great ways to declutter your house while making a few bucks along the way. If you follow these tips, you’ll improve your chances of not only selling more treasures but you’ll make more money doing it.
To a richer life,
The Rich Life Roadmap Team