How to Start a Bin Store: 3 Easy Steps
Starting a bin store can be an exciting and profitable venture, especially with the growing demand for discounted liquidation merchandise and affordable wholesale goods. With over 5,000 bin stores across the country, the concept is proven to be both popular and effective.
However, launching a successful bin store takes careful planning. In this blog, we’ll walk you through the essential steps for starting your bin store.
How to Find a Location for Bin Stores
The location of your bin store can make or break you. Whether you’re considering a warehouse or a storefront, it’s crucial that you weigh the pros and cons before making a decision.
Warehouse or Storefront?
Warehouse
Pros:
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A warehouse gives you significant space for a large scale operation, perfect for stocking large volumes of liquidated goods, pallets, or truckloads. It’s cost effective for storing large quantities of wholesale merchandise. If you want to keep your operational costs on the low end while selling high volume inventory, this might be the ideal option.
Cons:
- Warehouses can be more difficult to market, since they might not attract foot traffic like a storefront does. You will also need more manpower to sort the goods and stage the warehouse space. If you’re selling liquidation pallets, sorting can take time before you’re ready for retail.
Storefront
Pros:
- Storefronts are accessible to potential customers and can generate walk in traffic. This is ideal for a bin store model, as customers can browse and explore varieties of discounted items.
Cons:
- Storefronts often come with higher overhead costs like rent, utilities, and mainlining a storefront that is visually appealing to customers. Finding a storefront that has the space to offload a truckload can also be difficult.
High Income or Low Income Area?
When deciding on the best location for your bin store, it’s important to weigh the advantages and challenges of opening in a high income vs low income area.
In a high income area, you can benefit from a customer base that is willing to pay more for liquidated products and specialty goods, offering you the potential for higher profit margins. However, competition can be more intense, and rent costs are generally higher which can increase your overhead expenses.
On the other hand, a low income area typically costs you less in rent which allows you to establish yourself as the IT store for budget conscious shoppers- a destination for people looking for unique finds, exciting deals, and cool items at a fraction of their retail price.
However, with a smaller disposable income in the area, customers may be more focused on lower priced liquidation merchandise which can limit your opportunity to sell higher end goods. Additionally, you and customers might need to spend extra drive time to your location as foot traffic can be lower.
Where to Find Products for Bin Stores
Sourcing the right inventory for your bin store is one of the most important aspects of running successfully. Knowing where to source liquidation pallets and how to manage your budget effectively can ensure that you’re always stocked with in demand products.
What Type of Products to Stock
A successful bin store thrives on offering a wide variety of goods that appeal to different customer needs and desires. The key to maximizing your profitability is sourcing high demand products at a lower cost, which you can then pass on to customers. The most popular truckload options include:
Amazon High Piece Count Truckloads
Why it's great:
- High piece count truckloads are a great option for bin stores because they offer a low cost per item. When you buy products in bulk, the unit price drops significantly, giving you the opportunity to run discounted sales like $10 days down to $1 days.
Amazon FC Truckloads
Why it's great:
- Amazon FC products that are overstocked, returns, or slightly damaged in Amazon’s fulfillment centers are heavily discounted- you can buy them at a lower cost and still make a good profit.
Amazon LPN Truckloads
Why it's great:
- LPNs are items that are tagged with a unique identifier tied to specific product batches. You can track inventory more easily and have a clear understanding of the product condition, history, and previous sales data. This reduces the risk of getting stuck with unsellable products and allows you to determine which items are moving quickly.
Where to Source Product
To run a successful bin store, you will need a reliable source for wholesale liquidation inventory. Here are some top options:
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Online Wholesale Suppliers: Reputable online suppliers like Select Liquidation, allow you to purchase inventory at competitive prices. Clothing, electronics, baby products, housewares, kitchenwares, appliances- they have it all!
- Local Liquidation Auctions:You can look for regional liquidation events or wholesale auctions that are in your area to source goods in bulk.
Budgeting for Your Bin Store
You bin store inventory budget will depend on the size of your operation and the type of products you plan to source. Wholesale liquidation pallets can be an affordable way to stock up on a variety of goods. Be sure to account for the following costs:
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Startup Costs:
- Warehouse/ Storefront: One of the first expenses you will have to face. Use online resources like Loopnet for warehouse space rentals.
- Equipment: You’ll need shelving, bins, and a POS system to organize your products and process your transactions.
- Marketing: Advertising and promotions can help you build awareness and bring customers through the door. Consider online and offline strategies like social media ads, flyers, and special opening promotions.
- Insurance: You will need commercial property insurance and general liability insurance.
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Sourcing Inventory:
- Wholsalers and Liquidators: A key part in running your bin store is sourcing inventory. Choose reliable wholesalers and liquidators that specialize in overstock and returns and have merchandise in your budget.
- Shipping Costs: When calculating the probability of the truckloads, make sure to factor in shipping costs.
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Ongoing Expenses:
- Rent and Utilities: Once you’re up and running, you’ll have ongoing expenses like rent, electricity, water, and internet.
- Inventory costs: Regularly purchasing overstock and returns is necessary to keep your bins stocked with products and maintain customer interest.
- Staffing: If you hire employees, you’ll need to budget for wages or any payroll related taxes.
- Insurance: Don’t forget about the ongoing cost of insurance! It’s essential for protecting your store from unexpected incidents.
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Pricing and Profit Margins:
- Everything Must Go Pricing: By adopting an “everything must go” pricing model, you create an urgency and excitement for customers. This encourages faster sales and reduces overstock.
- High Piece Count Loads: Focus on buying in bulk to maximize your profits. Large liquidation truckloads with a high piece count allow you to sell individuals items at low prices while maintaining good profit margins.
- Price Drops: Think about implementing daily or weekly price drops for items that are taking longer to sell. This keeps customers coming back to find better deals and move inventory faster.
- Track Sales and Inventory: Monitor sales and inventory to optimize pricing and ensure that you’re not overstocking products that aren’t selling well.
How to Attract Customers to Your Bin Store
To run a successful bin store you need effective marketing strategies to drive traffic. Here’s how to get customers to your store, both online and in person:
Facebook Page Marketing
- Create a Facebook Business Page:
Set up a professional Facebook business page dedicated to your bin store. Include branding (store logo), contact details, and hours of operation. Add your store address and encourage shoppers to check in when they visit. Having a well organized page helps build credibility and attracts potential buyers who are looking for discounted liquidation products or affordable wholesale goods.
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Post Regularly: Regularly post updates on your latest inventory whether its pictures or videos. An active page keeps buyers and potential buyers up to date on your deals or promotions which encourages them to visit in person.
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Share Customer Reviews and Testimonials: Customer reviews and testimonials are a great way to build trust. Share positive feedback from happy customers as this can significantly influence potential buyers.
- Leverage Facebook Ads: Use Facebook Ads to extend your reach and target local buyers interested in discounted merchandise. Use precise targeting like wholesale liquidation, overstock, or clearance events.
Google Ads
Another powerful tool for attracting shoppers is Google Ads, which allows you to target users that are actively searching for terms related to your bin store.
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Target Search Queries: Target search queries like “cheap wholesale liquidation”, “discounted liquidation products near me”, or “bin stores near me”. These keywords are commonly used by customers that are searching for deals in their area.
- Geo Targeting: You can narrow your audience to a specific radius around your store location. This helps prevent wasted ad spending and makes sure you’re attracting local buyers who are likely to visit your bin store.
Word of Mouth
Word of mouth marketing is a powerful tool for bin stores. As customers discover your store and shop your great deals, they’ll share their experience with friends and family. Here’s how you can encourage word of mouth referrals:
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Offer Unbeatable Products and Prices:
Providing exceptional deals on quality products is essential for creating a loyal customer base that will talk about your store. Whether it’s home goods, electronics, or seasonal products, if you’re known for offering unbeatable prices on wanted goods, customers will recommend you to others. Make sure your inventory is fresh, diverse, and that there is always something new for customers to discover.
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Special Deals:
Offer special deals for customers who refer friends or family. For example, give a customer a 10% discount on their next purchase for every new customer they bring in.
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Encourage Social Media Shares:
Incentivize customers to share their experience in your bins store on social media. Offer a small discount for anyone who posts about their great finds and tags your store.
Conclusion: Launching Your Bin Store with Confidence
Starting your own bin store can be an incredibly rewarding business venture, with the potential for growth and profitability in a rapidly expanding market. With the right location, good inventory sourcing strategy, and an effective marketing plan, you can attract a loyal customer base and thrive in the competitive world of discounted merchandise.
Sourcing quality products such as Amazon HPC, FC returns, and LPN goods, allows you to offer valuable deals to your customers while maintaining profit margins. In addition, focusing on a reliable wholesale supplier ensures a steady stream of inventory to keep your bin store stocked.
With careful planning, an eye for deals, and dedication to customer satisfaction, your bin store will become the destination for customers looking to make budget friendly purchases. Happy Selling!
