Should You Start a Bin Store in 2024?




should you start a bin store
Photo by Nick Fewings on Unsplash

Should you start a bin store in 2024 to make money? It’s the end of 2023 and the business model has many questionable “what ifs”, that make it a very risky business model to invest in.

In case you are wondering what a “Bin Store” is, it’s a brick-and-mortar storefront where you resell liquidation items for a discounted price to customers. You dump the products in various bin with a fixed price, and let people pick what they want to buy.

Recently, I saw the following video by Lindey Glenn, about her opinion of the current market, when it comes to running a bin store business.

If you are interested in opening a bin store, I highly recommend you watch the video in its entirety, for a first-hand look at what it’s like to run a bin store right now, at the end of 2023.

In the video, Lindey offers insight into her experiences and also shows and comments on another video from another bin store expert by the name of Colton Carlson, who has sold over 10 million dollars of products in the industry.

In short, the main two issues with opening a bin store right now are that the market is over-saturated with competition, and there are too many people in the middle of the liquidation market cherry-picking out the profitable items when they resell liquidation pallets.

Since quality liquidation pallets are required to make a Bin store move items and have profits, it’s no wonder why this business model is not working as well for reselling!

Let’s discuss the two biggest issues below.

First Issue: Bin Stores Are Everywhere Now, It’s a Saturated Market

If you watch the video presented in the previous section, Colton points out that in 2019 there were a bit over 30 bin stores set up in the entire United States.

Fast-forward to 2023 and beyond, there are over 5,000 stores in the United States.

From a local perspective, Lindey states in the video she was the first to open her bin store in her town, then after 6 months to a year, her store faced competition with over 7 bin stores.

I imagine a similar scenario happening in just about every city or town in the United States, that might have been an ideal location for opening up a store.

And when you expand to over 5,000 stores in the U.S. in just four short years, it seems like the bin store business model is in a bubble right now.

Now, that’s not to say you still can’t be successful with a bin store business model, but it would be very, very hard for a new seller to really make this a success with so much competition and issues with sourcing profitable products to resell to your customers.

Heck, it would be hard even for an experienced reseller!

Second Issue: Problems with Liquidation Pallets

One reason I’ve never been a fan of liquidation pallets is that I always believed that someone selling pallets of merchandise would cherry-pick all the valuable items. Then, sell those profitable items separately on eBay or their own store.

Essentially, it leaves the buyer of the pallet with unprofitable merchandise.

If the liquidation company did not have its own store, it probably has a connection with another reseller that would buy those cherry-picked items at a higher price for more profit, than just leaving them in a low-priced liquidation pallet.

I mean, why would a liquidation company not try and maximize its profits? It’s hard to blame them. Especially with all the reseller videos online showing what items are selling for, and talking about BOLO items that bring in high profits.

BOLO, in case you don’t know, means “Be On The Look Out”.

Now, this is not to say that the entire liquidation market is cherry-picking out quality items, I’m sure there are legit companies out there selling pallets and leaving the profitable merchandise mixed in with the other undesirable items.

But, you will have to be well connected with a good reputable source to find that kind of quality, and profitable pallet to buy!

Something Else To Think About:

Because the demand has also surged with Bin Stores, many liquidators are looking at the model and saying, why are we letting profitable items go when we can just resell them on our own, doing something similar?

Again, I’ve never been a fan of buying random merchandise on a pallet, I’d like to buy wholesale items for an exact price and amount. This way you have 100% control of the items you are getting, if you want to resell. You don’t have to worry about getting extra worthless junk that no one wants!

Commonly Asked Questions For Opening a Bin Store

Here are some commonly asked questions regarding bin stores.

Is a bin store profitable?

It all depends on your location, overhead expenses, local competition, and the quality of your liquidation merchandise. As of right now, in 2023, because of lots of competition and sourcing problems, it’s not a good time to open a bin store, that could change in the future though.

Why are bin stores so popular?

Bin stores are popular because consumers love getting deals. The shopping experience of a bin store can provide a shopper with significant savings. Many buyers find 5-dollar items that might be worth 50 dollars or more.

What is bin store reselling and how does it work?

Bin Store reselling is when you buy liquidation pallets and set up the merchandise in fixed-priced bin for reselling, to give your customers significant savings. As your customers buy and pick over your newest merchandise, you slowly lower the price throughout the week to try and maximize your sales. Then when new products arrive again, you repeat the cycle.

Final Thoughts

If you ask me personally, I’ve never been a fan of anyone buying liquidation pallets, with the fear that it would be cherry-picked before getting to the buyer.

Given the experiences shared in Lindey Glenn’s video and her overall experience of the bin store market, I’d say there is a lot of truth to the fact that most liquidation pallets are indeed cherry-picked, with the exception of a select few wholesale (liquidation) suppliers out there.

In the world of business and reselling, I personally think there are much better opportunities out there for making money, so I would pass on opening a bin store. Unless you have a unique advantage over the masses and can overcome the issues of liquidation and sourcing profitable items to resell.

In the end, successful reselling all comes down to experience, your own knowledge, connections you make for sourcing, a little bit of luck, and some serious hustle.

If you liked this article, let me know what you liked the most by commenting below.


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