Financial Lessons to Be Taken from a Garage Sale

We just had a garage sale the other weekend. We usually have several each year. And while I have gotten quite good at preparing and carrying though with the process, I get better each time I go through it.

People often think that having a garage sale is easy. But to have a successful garage sale, it often takes much more than just putting junk out on tables to be picked through at will. During our last sale, it hit me that there are some important financial lessons that can be taken from having a garage sale. Here are a few of what I consider the most important garage sale lessons that also apply to much of the business world.

Advertising

Unless you live on a super busy road, just putting your unwanted stuff out in the front yard probably won't cut it; you have to advertise. Whether it's putting an ad in the local newspaper, announcing it at church, putting signs up on the supermarket bulletin board or on street corners (if your municipality allows), or networking through friends and family, promoting your sale can be of critical importance in getting customers to stop by.

Much the same goes with any business venture. Unless you're extremely lucky or in a niche were there is very little competition, it can be crucial to your success that you advertise your business, utilize networking, and promote your products and operation.

Networking

Tying in closely with advertising is networking. Getting family, friends and neighbors to join in your sale can increase the drawing power your sale can have due to available inventory, and it can also make your job easier with extra hands on board to help out. Our most recent sale correlated with that of a sale just down the street, which helped to draw customers to both locations since it was like a two-for-one -- and believe me, with gas prices high in the Chicagoland area, that can be a big selling point!

Networking can be just as important in the business and financial world. Being able to correlate and coordinate assistance from friends, family and associates can be a huge factor in building a business, gaining information and feedback, and strengthening your position.

Know the Rules

Yes, amazingly there are often rules to garages sales, although you may not always know of them. But as with business and finance, not understanding or knowing the rules, isn't an excuse for not abiding by them.

In our suburb, we are allowed two garage sales per year, per property, must have a permit, and aren't allowed to put signs on village property or any locations that aren't our property unless given express permission by the property owner (our local police are very stringent in their enforcement of this policy). Abiding by these rules keeps the coppers out of our hair and from taking our signs, which may result in lost time, money, and effort on our end, plus detracts from them doing more important things.

The same goes in the financial world. Not knowing the rules doesn't excuse you from costly errors. Whether it's trading in the stock market, buying real estate or doing your annual income taxes, conducting your due diligence ahead of time and understanding applicable rules and requirements can help keep you from financially costly pitfalls.

Know Your Customer

As in most businesses, you must know your customer at a garage sale. While this can be a bit difficult since people are likely coming from various areas and walks of life, using business sense can help you glean valuable information from these people. You have to figure that if they're attending a garage sale that they are looking for deals. Watching what potential buyers pick up while wandering through your wares, listening to what they say to a friend, or noting what items they pick up might lead you to deduct another item in which they might be interested in as well or how you could make or close a deal.

Just as in a garage sale setting, paying attention to and listening to your customers in the business world can be critical in selling, up-selling, as well as negotiating with them, allowing you to increase your profits.

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Disclaimer:

The author is not a licensed financial professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. For financial advice, readers should consult a licensed financial advisor. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.