Interested in small dorm business ideas? If YES, here is how to start a dorm item sales, resale, pawn and rental business with no money and no experience. How much does it cost to start up?
Starting a Dormitory Supply Business
Starting a business that sells, rents, pawns dorm supplies is not as complicated as one may think. In fact, if you have a good eye, and are very smart, this business may yield you so much profit far more than your expectations. This type of business leverages on the opportunities that unfolds when transient residents move in and move out.
Dormers want convenience, but they do not want to pay heavy living expenses just to enjoy comfort and convenience. This is where this business comes in. The ones moving out want to do away with their stuffs, while the ones moving in want to save up by going for rented or used items.
With the right approach, you could be in for making the most out of this business.
Begin Your Business the Proper Way
First, you will have to begin your dorm rental business the proper way. By proper way, we mean you have to fulfil all the legal requirements before starting your dorm rental business.
A good place to begin is to get a very good trade name for your dorm rental business. You must get a very catchy name that not only sounds nice to the ears, but is also easy to pronounce. You must bear in mind that your desired trade name may be chosen, so you will need to have other alternative trade names in mind before heading to the appropriate department to register your business.
You will head on to obtain any required license and permits, and employer ID (if you will hire staff for your business) you may need for your business to become a full fledged one. Start with making enquiries in your county or municipality on the licenses and permits you will require for your business. Each city or municipality has its own percentages or fees for obtaining license, permits, and tax rates. Sales taxes usually range from 3% to 7% of the buying price.
Get a Place to Put up Your Business
Where do you plan on putting up your business? It will be a great idea if you could find a good place in your house to put up the dorm essentials and be managing your inventory. Extra spaces in your house could suffice. Making your dorm rental business a home-based one will save you any additional fees you will incur for leasing in terms of storage space.
You could also consider creating a website for your dorm supply rental business where you could be showcasing your items for sales or rent online, together with their corresponding prices.
Keep a Good Eye
You have to keep a good eye for collecting your inventories. As you well know, it is not all inventories that you acquire from residents who are moving out. Smart dormers know that having a good eye is very crucial for seeking out those items at good bargains or even the ones given out for free. There are so many items you could get at very little or no cost at all, especially at landfill; items that are too good to be thrown into the trash. You could get items at garages or yards or thrift shops at a very low cost as $1 or even a couple of cents. You could also check out for auctions at online stores or storage houses. Get good bargains that will guarantee you great value later.
Stylish and trendy items that are quite affordable are also some very good ones to keep an eye on and watch out for. These items are the ones that sell the most, so you should bank on them very well. One thing you should however note is that you must make sure items that are pawned to you are well checked to ensure they are in good shape and condition, and can be resold for good value anytime later.
Set out a Good and Effective Pricing Scheme
Your profitability (i.e. how much you will make) in this dorm supply and rental business will really depend on how well and effective your pricing scheme is. How well are your products and services priced? One major determinant of how well your products and services will be priced is the state or condition of the products.
Also, the usability and the value of your products and services will go a long way too. In most states in the United States, the typical custom is that a 5-year old appliance that is pawned brings in a minimum of 25% of its actual amount it was bought. The interest rate that is charged by pawnshops on each loaned amount for each month however, is regulated by each state.
Typically ranges from 4% to 10%. For items that are sold, a minimum of a 5% mark-up price will do just fine. Then for items that are to be rented out to customers, you should consider the value and life span of the item. For example, you could rent out a used television for about $50 to $250 each single year.