Monday, September 29, 2014
Estate Sales: Old Ways vs. New Age
What do you think of when you mentally picture an Estate Sale?
Well, before I got into the business, I pictured myself driving by a neighborhood and a small yard sign catching my eye. I would follow the signs to the house and hopefully I'm able to locate the correct one. Upon walking up a driveway (littered with items) and confronting an older individual, behind a table with a lock box for transactions, the conversations would be a simple, "How are you today," but very little after that. The items would be sprawled about tables, in an unorganized fashion, and every item would contain a small strip of masking tape to notify buyers of the price. The door to the house would be open but not very welcoming. After walking through the house, I would find a few thing to purchase but always know how much money was in my pocket. They only take cash, so I can't go over my cash budget unless I really want to drive and locate an ATM. I would pile everything I wanted on the table and the cashier would tally the total due. After the purchase, I would have to make sure I'm able to carry everything to the car.
Things haven't changed!!
Well, though the story above sounds like a thought. It's actually how Estate Sales are still operated to this day. An industry that time has somehow forgotten. As if dragged down by the Garage Sale, the Estate Sale industry has always mirrored the Garage Sale industry with it's simplicity and low overhead. I'm here to tell you, Change Is Here!!!
The Old Ways: (Still Being Done)
1. Advertising: When an estate sale is going to be held, the main advertising tactics were (and still are) promoting the sale through local classified ads and yard signs around the neighborhood.
2. Pricing: All items in the house are priced using masking tape or a colored sticker system.
3. Presentation: Items are spread out throughout the house, and on tables in the garage, with really no organizations. Need a stapler? It's probably in the kitchen or on some random table next to the oven mitts.
4. Payment: Cash, Cash, and Cash only! Most estate sales still only take cash due to the fact they are unaware of technological advancements to take credit card payments.
So, what's wrong with the Old Ways?
Obviously, it's extremely hard to argue an extremely low overhead. The most expensive part of the "Old Way" is the classified advertising in the local paper. However, the yard signs ($6 a piece) can get expensive depending on how many were purchased, but they can be used over and over again.
Outside of the low overhead, Every aspect of the "Old Way" is working against the Estate Sale Company and not assisting them in business growth and development. With the past pricing system, it doesn't allow the company to track and be accountable for the value of all items in the house. Also, it just looks tacky! As a home owner, this accountability tactic leaves much room for theft.
Plus, mixed with the tacky masking tape pricing system, the presentation is working against them as well. Like items need to be easily located. If I'm in an office looking at a filing cabinet, I will probably want to purchase some file partitions as well. If they are across the house, I might not find them or even think of them.
When it comes to payment, who doesn't love cash? However, the "cash only" system has some major pit falls. It does restrict the average transaction amount per customer. An individual will only spend the amount of cash they have in their pocket. If your like me, you always know the exact amount of cash you have on you. These days, the majority of customer don't carry that much cash. The majority of their money is located in the bank and connected to a debt card. So, the "Old Way" misses out on a massive amount of potential revenue. By allowing customers to purchase via credit/debt cards, it creates an additional revenue stream and generates more convenience for your customers.
The New Ways:
1. Advertising: While still advertising through local classified ads and yard signs, other forms of advertising have become prevalent through; mass email notification, company websites, web advertising, social media and networking.
2. Pricing: Utilizing advanced inventory tracking, point of sale system and labeling, we are able to price items with professional price tags similar to what you would find at a large chain shopping center. Plus, it does create a more professional look to the customers.
3. Presentation: Similar items are grouped together in the same area to create an non-confusing shopping experience for the customers.
4. Payment: Cash is always available but credit/debt cards are accepted. You can even split the check and it will all be tracked properly. Oh, we can supply you will a receipt as well.
5. Branding: Check out bags are supplied with every purchase. These bags contain the company logo and create ease for our customers carrying items to their vehicles.
6. Data Analysis: From web site visits, number of emails opened, average check per customers and total revenue generated, everything is tracked and monitored.
So, how is the "New Way" actually changing the industry?
Advertising in the classifieds is always beneficial to getting the word out to the local community. Also, placing yard signs does help with drawing in the neighbors in close proximity while driving potential customers to your location who were just cruising by. However, our data base of emails is constantly growing. This data base consist of customers who have been to one of our Estate Sales before and would like to receive information of future estate sales. To keep them informed, we send out an email every week to notify them of the next sale, location and the items in the sale. Also, the majority of our future clients locate us via web advertising. The business would not be able to function if it weren't for a combination of client generation and customer generation through web advertising.
Social Media does play a major role with advertising these days. Outside of customers actually being at a sale, social media allows us to be personable with customers, and clients, to permit us to constantly remain in the back of people's minds. We also make a constant effort to venture out into the community to get to know the other small businesses around us. A chunk of our referrals come from other business owners with like minded businesses.
Pricing every item in a house can be a daunting task. This does not mean you can't make every item look professional. Again, masking tape just looks tacky. By providing customers with a professional looking price tag that is easy to read, we create a retail environment experience in our client's home. That way, we don't have problems with customers asking if the price is $40 or $90. All prices are clearly stated and very easy to read. Plus, our pricing system allow us to track every item and run reports to show our clients exactly what was sold and the price each and every items was sold for.
Presenting the items of an estate sale is just as important as pricing and advertising. All like items are placed together for easy locating. As stated above, if I'm looking at purchasing a filing cabinet, I would probably want to purchase some file partitions as well. By placing like items in the same locations, this creates a convenient shopping experience for all of our customers. It's not all about the easy of locating items. It's also about the look of the entire room as the customer walks in. If the room appears dirty and items have just been thrown around, this will reflect in the customers shopping experience. When you walk into Macy's, are their items neatly placed with care or are they just scatted on a table? They are neatly placed with care because the visual impact is a positive one and makes shopping easier. Items neatly placed with care, though subtle, does help a customer with a purchase decision and pays respect to he home owners property.
Taking cash only isn't the most efficient way for taking payment from a customer. Again, with almost everyone carrying a credit/debt card, it would be foolish to not accept other payments beyond cash. There are many ways out there to accept credit/debt cards, you just need to look it up on the Internet. Just a little insider information, people spend more money with a credit/debt card. There is a reason why many companies around the world are accepting these payments and pushing their customers to use these payment methods. Also, if you haven't noticed, many large companies are now providing credit cards. Why??? Not only will they generate revenue off of interest but you will constantly carry around their logo (on the card) at all times. Estate Sale credit cards is a future possibility but not at this time.
Branding a company name takes some careful planning. Basically, you can't just hand someone your logo and say, "Carry this around for the rest of the day." To make it easier for our customers to carry their purchases to their vehicles, we actually provide customers with bags carry items. Every bag contains our company logo to create brand awareness while our customers travel around and create a subtle reminder of who we are.
Data Analysis is extremely important to every single industry around the globe. Every number must be crunched and analysed to make certain the company is operating efficiently. From the number of people arriving at the sale to the way they decided to pay. Everything is broken down to not only make the company more profitable but to understand more about our clients and customers. With revolutions in the computer industry, tracking data has become much easier. It all starts from the way you decide to advertise and the way you decide to price items. The "Old Way" just isn't an efficient way to operate a business.
The "Old Way" of conducting estate sales is on it's way out while the "New Way" is revolutionizing an industry not yet touched by the electronic revolution. While "Old Ways" can still be beneficial to estate sales, the "New Ways" are providing more accountability and professionalism to the Estate Sale industry. These "New Ways" are creating accountability for clients through theft deterrents, creating comforting shopping expediencies for customers, providing useful information for both the client and the company and allowing Estate Sale Companies to better reach potential clients and customers.
Just as a reminder, I do work with Aether Estate Sales Company. The point of my blog is to inform customers, and potential clients, of how we operate and what to expect from a reputable Estate Sale Company. We may not be the only estate sale company out there but we do hold ourselves to a higher standard than any other.
Please follow my blog and comment, as I move further into the rapidly growing industry of Estate Sales.
Wednesday, September 24, 2014
How to chose the right Estate Sale Company
So life has happened and your in need of selling all of the items in your home or the home of a loved one. At this point, your faced with one question. Do I have time to go through every single item in the house, price that item, post them online for sale and/or hold a sale at the house?
In today's day and age, time is an extremely valuable asset and most of our schedules are already booked solid. If you're finding yourself in the situation where you don't have the time to invest, I would advise you to start researching Estate Sale Companies. The question is, how do you find the right Estate Sale company.
Let's first review what a professional Estate Sale company will do for you. Then we can dive into what to avoid, to better protect your belongings and yourself.
A professional Estate Sale Company will:
1. Set up a consultation to go over the items to be sold. This consultation should always be free. Though Estate Sale Companies are a service provider, their travel costs aren't your concern, if they would wish to do business.
2. A solid Estate Sale company will always be on time. However, if something occurs (and things always come up), you should always expect a courtesy call to inform you of the change in plans. This is simply business courtesy and if a company cannot supply you with that, you probably don't wont to work with them in the first place.
3. Arrange a suitable sale date that works with the schedule of both parties. A good estate sale company will work with your schedule, to make certain the sale date is convenient for both you and them.
4. They will take pictures of the house and items in the home. So, expect to see a camera. In order to not make multiple trips to the house for photos, they should be ready with a camera to snap a few photos.
5. They will organize and price every item in your house. This is certainly a larger topic for future posts but a professional Estate Sale Company will organize and price your items in a proper fashion to optimize sales through presentation, while creating accountability through inventory systems.
5. Advertise the Sale. A professional Estate Sale company will foot the bill for all of the advertising. This should not come out of your pocket. They will advertise through; all of the estate sale web sites, promote the sale on their own web site, contact their buyers data base, conduct local advertising and on sight advertising. Again, expect to learn more about Estate Sale advertising in future posts.
6. Provide a detailed report of items sold and invoicing. The Estate Sale could not have happened without your belongings providing the inventory. Wouldn't you want to know what sold, for how much and know the exact amount of money you will receive from the sale? This will also help to identify particular items and see if they sold. This will help deter theft as well. These days, most Estate Sale company still use masking tape to price items. This is not an efficient way to track inventory.
7. Expect to be paid with in 5 to 10 business days. There is no reason a professional Estate Sale Company should retain your payment for any longer. I believe 10 business days is a little to long but some companies sell remaining items, online, that did not sell on sight.
8. Follow up and Referrals: the majority of Estate Sale clients come from word of mouth advertising. I would expect a professional Estate Sale Company to contact you, after payment has delivered, to get your thoughts on the sale and to make certain you are satisfied. At this time, they should be asking you for referrals or a review.
So, now that you know what to expect from a professional Estate Sale Company, how do you chose the correct Estate Sale Company?
1. Look over the Estate Sales Company's web site. Does it look professional or does it look like they didn't spend very much time on it? The web site should be an extension of the company's mentality. If the sight isn't professionally done or doesn't state essential information, I would suggest you move on.
2. Contact the Estate Sale Company via a phone call or an email. Measure the response time. A company that values every call, from any client, is an optimal company. So, expect an answer on the first call or a call back in a timely manner. When it comes to email, a professional Estate Sale Company will respond to your email shortly after it's sent.
3. During the Consultation: ask every question that comes to mind. The Estate Sale Company should supply with you with every aspect of the sale including their standard operations. The company should be able to show you how they plan on tracking your items, advertise the sale and provide you with what to expect.
(Note: a great Estate Sale company will never tell you how much you will make. The worst thing an Estate Sales Company can do is over promise and under deliver.)
4. Transactions!! A professional Estate Sales company will accept both cash and charge. With everyone commonly carrying a debt/credit card and backing away from carrying cash, a company would be foolish to not accept debt/credit cards. Plus, multiple sales could be lost if a card payment option is not present.
There a ton of Estate Sale Companies out there. The point is to locate the best company to present your household items in a professional and respectful manner while conducting their business in the exact same fashion.
As a reminder, I am currently representing Aether Estate Sales Company and the point of this blog is to not only promote my company, but to enlighten individuals about the Estate Sale process. That way, you can make the most informed decision possible, when it comes to choosing the perfect company for your future Estate Sale.
Please follow my blog and comment, as I move further into the rapidly growing industry of Estate Sales.
In today's day and age, time is an extremely valuable asset and most of our schedules are already booked solid. If you're finding yourself in the situation where you don't have the time to invest, I would advise you to start researching Estate Sale Companies. The question is, how do you find the right Estate Sale company.
Let's first review what a professional Estate Sale company will do for you. Then we can dive into what to avoid, to better protect your belongings and yourself.
A professional Estate Sale Company will:
1. Set up a consultation to go over the items to be sold. This consultation should always be free. Though Estate Sale Companies are a service provider, their travel costs aren't your concern, if they would wish to do business.
2. A solid Estate Sale company will always be on time. However, if something occurs (and things always come up), you should always expect a courtesy call to inform you of the change in plans. This is simply business courtesy and if a company cannot supply you with that, you probably don't wont to work with them in the first place.
3. Arrange a suitable sale date that works with the schedule of both parties. A good estate sale company will work with your schedule, to make certain the sale date is convenient for both you and them.
4. They will take pictures of the house and items in the home. So, expect to see a camera. In order to not make multiple trips to the house for photos, they should be ready with a camera to snap a few photos.
5. They will organize and price every item in your house. This is certainly a larger topic for future posts but a professional Estate Sale Company will organize and price your items in a proper fashion to optimize sales through presentation, while creating accountability through inventory systems.
5. Advertise the Sale. A professional Estate Sale company will foot the bill for all of the advertising. This should not come out of your pocket. They will advertise through; all of the estate sale web sites, promote the sale on their own web site, contact their buyers data base, conduct local advertising and on sight advertising. Again, expect to learn more about Estate Sale advertising in future posts.
6. Provide a detailed report of items sold and invoicing. The Estate Sale could not have happened without your belongings providing the inventory. Wouldn't you want to know what sold, for how much and know the exact amount of money you will receive from the sale? This will also help to identify particular items and see if they sold. This will help deter theft as well. These days, most Estate Sale company still use masking tape to price items. This is not an efficient way to track inventory.
7. Expect to be paid with in 5 to 10 business days. There is no reason a professional Estate Sale Company should retain your payment for any longer. I believe 10 business days is a little to long but some companies sell remaining items, online, that did not sell on sight.
8. Follow up and Referrals: the majority of Estate Sale clients come from word of mouth advertising. I would expect a professional Estate Sale Company to contact you, after payment has delivered, to get your thoughts on the sale and to make certain you are satisfied. At this time, they should be asking you for referrals or a review.
So, now that you know what to expect from a professional Estate Sale Company, how do you chose the correct Estate Sale Company?
1. Look over the Estate Sales Company's web site. Does it look professional or does it look like they didn't spend very much time on it? The web site should be an extension of the company's mentality. If the sight isn't professionally done or doesn't state essential information, I would suggest you move on.
2. Contact the Estate Sale Company via a phone call or an email. Measure the response time. A company that values every call, from any client, is an optimal company. So, expect an answer on the first call or a call back in a timely manner. When it comes to email, a professional Estate Sale Company will respond to your email shortly after it's sent.
3. During the Consultation: ask every question that comes to mind. The Estate Sale Company should supply with you with every aspect of the sale including their standard operations. The company should be able to show you how they plan on tracking your items, advertise the sale and provide you with what to expect.
(Note: a great Estate Sale company will never tell you how much you will make. The worst thing an Estate Sales Company can do is over promise and under deliver.)
4. Transactions!! A professional Estate Sales company will accept both cash and charge. With everyone commonly carrying a debt/credit card and backing away from carrying cash, a company would be foolish to not accept debt/credit cards. Plus, multiple sales could be lost if a card payment option is not present.
There a ton of Estate Sale Companies out there. The point is to locate the best company to present your household items in a professional and respectful manner while conducting their business in the exact same fashion.
As a reminder, I am currently representing Aether Estate Sales Company and the point of this blog is to not only promote my company, but to enlighten individuals about the Estate Sale process. That way, you can make the most informed decision possible, when it comes to choosing the perfect company for your future Estate Sale.
Please follow my blog and comment, as I move further into the rapidly growing industry of Estate Sales.
Sunday, September 21, 2014
Why Hire an Estate Sale Company
Be it divorce, a death in the family, a family member moving into an assisted living facility or any traumatic family situation, we all gather belongings over time and eventually need to pass them on to someone else.
So, what are your options;
1. Donate everything to a charity
2. Hand them out to family members to take (if they will take them)
3. Online Sales
4. Hire an Estate Sale Company
Let's go through these options.
Donate to Charity
You could simply donate every item to a charity (i.e., Goodwill) and use the receipt as a tax right off. However, I would advise you to inventory every item because the IRS actually has set deducted prices per item. Here is a good reference: IRS Donation Non-Cash Sheet This sheet will give you a break down of the items you have donated and the value (per item) you can deduct from your taxes. However, you still have to go through ever item, note the value and then load it on a truck and drive it to the donation center.
Handing Items to Family
When it comes to items that are extremely valuable, I would highly recommend handing them to family members rather then donating them to charity. That way, the items can stay with-in a family until a family member decides to sell the items. However, family members aren't typically inclined to receive items that aren't very valuable. Items like; cleaning supplies, tape, white out, fridge magnets, etc. These items still hold value though very little. At that time, you still need to figure out what your going to do with those items.
Online Sales
This strategy is extremely beneficial, inexpensive but very time consuming. Basically, you need to separate each item, photograph it, post it (Craigslist.com, Ebay.com or any other online sales site) and write a detailed description, of each item, that will entice people to purchase. Again, this is extremely time consuming!!!
Hire an Estate Sale Company
Estate sale companies will come into your home, price every item out, organize the items, host a sale and advertise the sale. Basically, they will remove the possible headache of you actually doing anything. Obviously, they are in the business of making money but the majority of Estate Sale Companies don't charge an upfront fee. They typically retain a percentage of the total amount sold. That way, no money is coming directly out of your pocket.
Estate Sale Companies vary from company to company and the percentage the companies retain vary as well. However, in my experience, the companies that use masking tape to price items are on the lower end of the percentage scale. However, the companies that typically take the time to present your items in a professional and fashionable manner, are on the higher end of the percentage scale. Those companies have a decent following with positive advertising techniques. Ultimately, you get what you pay for. So, don't expect an Estate Sale Company to come in and do an amazing job while also retaining a small percentage of the revenue.
Obviously, no one wants to lose money or pay to much for a service. Hiring an Estate Sale Company can be one of the most beneficial thing to do with out wasting your precious time and relying on the customers they have already generated through previous sales and advertising.
Note: I recently joined an Estate Sale Company called Aether Estate Sales. I can't help but notice the growth potential in the company and the way we can assist clients in their time of need. In my future blogs, I will be providing advise in every aspect of the Estate Sale and the mistakes and successes we have had. Obviously, I will be advising people to chose Aether Estate Sale Company but also provide information to clients and customers to make the best informed decisions possible when it comes to attending or hosting an Estate Sale.
Please follow my blog and comments as I move further into the rapidly growing industry of Estate Sales.
So, what are your options;
1. Donate everything to a charity
2. Hand them out to family members to take (if they will take them)
3. Online Sales
4. Hire an Estate Sale Company
Let's go through these options.
Donate to Charity
You could simply donate every item to a charity (i.e., Goodwill) and use the receipt as a tax right off. However, I would advise you to inventory every item because the IRS actually has set deducted prices per item. Here is a good reference: IRS Donation Non-Cash Sheet This sheet will give you a break down of the items you have donated and the value (per item) you can deduct from your taxes. However, you still have to go through ever item, note the value and then load it on a truck and drive it to the donation center.
Handing Items to Family
When it comes to items that are extremely valuable, I would highly recommend handing them to family members rather then donating them to charity. That way, the items can stay with-in a family until a family member decides to sell the items. However, family members aren't typically inclined to receive items that aren't very valuable. Items like; cleaning supplies, tape, white out, fridge magnets, etc. These items still hold value though very little. At that time, you still need to figure out what your going to do with those items.
Online Sales
This strategy is extremely beneficial, inexpensive but very time consuming. Basically, you need to separate each item, photograph it, post it (Craigslist.com, Ebay.com or any other online sales site) and write a detailed description, of each item, that will entice people to purchase. Again, this is extremely time consuming!!!
Hire an Estate Sale Company
Estate sale companies will come into your home, price every item out, organize the items, host a sale and advertise the sale. Basically, they will remove the possible headache of you actually doing anything. Obviously, they are in the business of making money but the majority of Estate Sale Companies don't charge an upfront fee. They typically retain a percentage of the total amount sold. That way, no money is coming directly out of your pocket.
Estate Sale Companies vary from company to company and the percentage the companies retain vary as well. However, in my experience, the companies that use masking tape to price items are on the lower end of the percentage scale. However, the companies that typically take the time to present your items in a professional and fashionable manner, are on the higher end of the percentage scale. Those companies have a decent following with positive advertising techniques. Ultimately, you get what you pay for. So, don't expect an Estate Sale Company to come in and do an amazing job while also retaining a small percentage of the revenue.
Obviously, no one wants to lose money or pay to much for a service. Hiring an Estate Sale Company can be one of the most beneficial thing to do with out wasting your precious time and relying on the customers they have already generated through previous sales and advertising.
Note: I recently joined an Estate Sale Company called Aether Estate Sales. I can't help but notice the growth potential in the company and the way we can assist clients in their time of need. In my future blogs, I will be providing advise in every aspect of the Estate Sale and the mistakes and successes we have had. Obviously, I will be advising people to chose Aether Estate Sale Company but also provide information to clients and customers to make the best informed decisions possible when it comes to attending or hosting an Estate Sale.
Please follow my blog and comments as I move further into the rapidly growing industry of Estate Sales.
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