Used and scratch-and-dent appliance outlet

Budget-minded homeowners, renters, landlords, flippers and people replacing a broken appliance in a hurry.

You buy stock cheaply, such as trade-ins, liquidation lots, moving sales and dented units from retailers, then sell at a markup. Delivery and haul-away fees add extra income.

• Basic appliance testing and cleaning
• Sourcing and haggling over stock
• Honest customer service
• Lifting and loading safely

• Check whether your city, county or state requires a secondhand dealer or used goods license for reselling used appliances, as rules vary by location
• General liability insurance, plus insurance covering stock and delivery
• Rules on handling refrigerant and disposing of old fridges and freezers; check EPA requirements and your state's rules, as refrigerant work may require certification
• Check whether your state has any rules on selling used appliances or on warranties you advertise
• Stock that fails after sale, so test every item and keep clear return terms
• Workers' compensation once you hire helpers, and heavy lifting risks

Startup costs are typically estimated at around $35,000 to $120,000, depending on your premises, how much stock you buy, delivery equipment and testing tools. Stock can be your biggest cost, so how much you buy at the start matters.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on your location, stock quality, pricing and how quickly items sell. Revenue is not profit, so account for rent, stock costs, delivery and insurance.

Check whether your city, county or state requires a secondhand dealer or used goods license. Also check EPA and state rules on handling refrigerant and disposing of old fridges and freezers, any rules on advertised warranties, and insurance for stock and delivery, plus workers' compensation if you hire helpers.