Open-Box and scratch-and-dent appliance wholesaler

Independent appliance shops, used and outlet stores, installers, property managers, landlords and small builders.

You earn the margin between your bulk purchase price and your wholesale price per unit or per lot. Delivery fees add a little extra.

• Negotiating with suppliers and buyers
• Judging condition and resale value
• Inventory tracking
• Basic handling of heavy goods

• Sales tax registration and resale certificate rules, which vary by state
• Check whether your city or county requires a business license and whether your warehouse zoning allows storage and pickups
• General liability and property insurance for stock, plus cargo cover if you deliver
• Hidden damage or missing parts on liquidation lots, so inspect before bidding where possible
• Warranty and return terms. Be clear that items are sold as-is or with your own limited terms
• Heavy lifting and the right equipment, such as a pallet jack, a liftgate truck and appliance dollies

Startup costs are typically estimated at around $15,000 to $60,000, depending on stock volume, warehouse or storage space, and equipment. Monthly revenue is typically around $6,000 to $30,000, depending on how many lots you buy and resell.

Check sales tax registration and resale certificate rules in your state, whether your city or county requires a business license, and whether warehouse zoning allows storage and pickups. Also look at insurance for stock and clear as-is or limited warranty terms.

Negotiating with suppliers and buyers, judging condition and resale value, tracking inventory and handling heavy goods all matter. Plan for at least about 25 hours a week, and inspect liquidation lots for hidden damage or missing parts before bidding where possible.