Make money like 'American Pickers'
With the success of shows like this, many people now think they have a basement full of priceless treasures.
This post comes from Kentin Waits at partner site Wise Bread.
"American Pickers" is one of the most popular shows on cable TV. But how do Mike and Frank make picking look so easy and the picking life so darn sexy?
After 22 years of picking barn sales, thrift stores, rural auctions and alleyways, I've learned there are a few key rules of the road that all pickers follow. If you'd like to venture down a country road and do a bit of freestylin' yourself, here's how to make sure you come away with a pocket full of profit.
Know how to move your inventory.
Even before you begin buying, you have to be fairly sure you can sell your items at a decent profit. It helps to have a working knowledge of how to sell online and/or a network of active antique dealers, collectors or interior decorators. Knowing there's a group of willing buyers can help inform your purchases and give you confidence about what to buy and how much to pay.
Do your research.
For pickers, luck accounts for about 20% of success. The other 80% comes from diligent, never-ending research. Knowing what to buy, what to pay for it and understanding the cycles of the collectibles and antiques market is absolutely essential. Researching sites like eBay is a quick and relatively painless way to get started. Searching by category and keyword and then refining your search by completed sales will give you a general idea of current market prices for particular items.
It helps to have broad knowledge of many categories of collectibles and hot items. I've sold everything from vintage suits to midcentury furniture, from industrial tables to old Monopoly games. Generalizing will improve your chances of discovering a great piece in nearly any environment.
Picking is hard, sometimes dangerous work. When you fully commit to hardcore picking, you need to channel your inner Indiana Jones. Get used to cobwebs, spiders, bad smells, sweat and backaches. Just remember, sometimes the very best items are undiscovered because they're hard to reach.
Know your minimum profit margin.
Many times when picking, you'll come across an undervalued item, but it doesn't make sense to simply buy everything that's undervalued. Smart pickers ignore the items that have too small a return. Decide the minimum profit you're willing to make on any single item you buy. Is it $10, $15, $50? When you factor in your time spent picking, cleaning, photographing, listing and shipping, making less than $10 per item might not be worth it.
Negotiate like a master.
Shows like "American Pickers" and "Antiques Roadshow" have brought antiquing to the masses and helped a whole new generation appreciate and preserve items from our past. But the downside is that everyone now thinks they have a basement full of priceless treasures.
This makes the picker's job a bit more challenging and makes some basic negotiation know-how more valuable than ever. Brush up on your haggling skills and don't be afraid of a little friendly pushback on prices.
Don't buy emotionally.
Falling in love with the items you pick is the quickest way to kiss your profits goodbye. Before you buy, make sure you're calculating your potential profit objectively. Afterward, fight the urge to keep everything that appeals to you.
So if you're ready to profit from picking, pack your work gloves, a flashlight, some hand sanitizer and cash. Hit the road and explore what's selling at auctions, estate sales and on the roadsides all across America. With a little luck and a lot of research, you can give Mike and Frank a run for their money. Happy picking!
Have you ever gone picking? What's your best score, and where did you find it?
More on Wise Bread and MSN Money:
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.