- Online Research
Do google searches to identify companies in the area and then review the websites. A well-done website speaks to the organization and drive of the company.
- Reputation
Read reviews that are online, not just the reviews the company posts on its site. Also talk to friends and family. Word of mouth is a great indicator of a company’s honesty and professionalism.
- Make the Call
Picking an estate sale company is easy. Choose two or three of the companies and call or email them. A screening phone call will help rule out or rule in which ones you want to work with. The company will want to see the home and items for liquidation, so a home visit will be planned quickly. During the home visit, ask questions!
- Understand Their Reach Capabilities
A successful estate sale only happens if enough customers shop the sale.Therefore, the company’s expertise in social-media marketing and advertising is essential. Ask questions about how the sale is publicized and what avenues are used.
- Understand the Pricing Strategies
Determine how the company prices the items for sale. What tools and resources are used? Do they have a certified appraiser working for the company? What kind of second and third day discounts are given and how is that decided?
- Identify Commission Structure
Some estate sale companies advertise that they only take a 30% or 35% commission. Others take 45% or 50%. It seems like an easy decision, go with the 35% company, right? Hmmm. Maybe not.
The estate sale business is labor intensive. Generally a team comes into the home for 2-4 days in order to sift through the sale items and trash. Then objects must be displayed in an appealing store-front way. The final step to staging is appropriately pricing items. This often takes research and diving into resources and online searches.
In addition, effectively advertising the sale is essential and also takes time and labor.
All this matters because a company that takes such a low commission is not going to have the time to effectively stage, price and advertise the sale. And all of this affects how many items are actually sold.
So a 35% commission company may only sell $4,000 of merchandise, which would pay the owner $2,600. The 50% company spends more resources to make the sale successful. Profits with the higher priced company usually are greater. The same sale may make $10,000 and even with the higher commission, the owner would see a paycheck of $5,000.
As with most things the cheaper option is rarely the better option.
