I often craft these blogs based on the most frequently asked questions from individuals eager to dive into the world of pallet flipping. Today, we’re tackling a question that crops up quite often: “Do you have any advice for beginners? How do I get started?”
While I never tire of answering these common questions, it does highlight the need for more accessible information to address these queries. So, here’s a few tips to help beginners embark on their pallet flipping journey.
Step One: Don’t Spend Money You Can’t Afford to Lose
There is a common cliche that says “you gotta spend money to make money”. This is true, however, we can still be smart about that. In 2019, the federal government released a shocking statement that 41% of Americans who could not cover an unexpected expense of $400 or more. Liquidation never has been and never will be a “sure fire” thing. There is no way to completely mitigate the risk that comes with flipping pallets. It is an enjoyable business, but remember, the risk is assumed and the work is hard.
If you never take a single ounce of advice from me, I ask that you please take this one: do not spend your rent money on pallets. Do not spend your rent money, your light bill money, your emergency fund… NONE of that should be spent flipping pallets. There is always a chance that you could lose some or all of that money with one pallet. And if you’re just starting out, your chances of losing are much higher because you’re still learning.
Step Two: Start as SMALL as Possible
So, you get that starting fund, you get excited, and you purchase your first pallet. Let’s hope you did your due diligence on shipping and didn’t overpay! The thrill of waiting for that pallet to come in and the excitement of unboxing it is comparable to Christmas morning.
Then what? Many first-time pallet flippers do not make it far past this point if they have not truly made a plan to move those items quick enough that they can keep their pallet business moving. If you have never sold on any online or local platform before, you would have to learn quickly. Even an experienced business person could get overwhelmed with the influx of product and the overwhelming and tedious process of moving those items quickly enough.
Step Three: Research, Research, Research
Any reseller or pallet flipper would tell you that research is your best friend. Every reseller will give this advice for beginners. There are so many different ways to run a reselling business. Many people start out reselling with the intention to start reselling pallets, but discover there is a different sourcing method they prefer more. And that’s absolutely okay!
There are dozens of reseller youtube channels, blogs, and information out there to help you get what you need when it comes to building your business. I always highly suggest you find a few resellers you like to follow that most closely matches your business model and keep up with what they’re doing, how they’re doing it, and how they adjust to the ever-changing reselling climate. Who knows, maybe you could be a reseller YouTuber yourself!
If you’re truly wanting to purchase pallets, then I’d start trying to find the types of pallets in the niche you want that fits your business model. Look into unboxing videos, testimonies, and reviews for the types of pallets you think work best for you to get more information about your choice. By doing this, you get a better idea of what to expect when it comes to purchasing those types of pallets.
THEN, I’d start talking to liquidators that have those pallets and start making relationships with them. Reselling is an AMAZING way to make extra money while living whatever lifestyle you’re living. Joe and I specialize in pallet flipping and liquidation, but the process is pretty similar across all niches and styles. It’s all about what works best for you!