Start a used racking and pallet equipment reseller business

Budget-conscious small warehouses, start-up e-commerce sellers, workshops, farms and contractors who want working equipment for less than new.

You sell at a markup over what you paid, plus charges for delivery, and sometimes for removal or buy-back of equipment. Quick turnover of stock matters most.

• Judging the condition and value of used equipment
• Negotiating purchases and sales
• Basic mechanical repair and safe lifting

• Safety of used racking: check with manufacturers or an engineer about inspection and load rating before selling, and be clear about what is sold as-is
• General liability and property insurance, plus workers' compensation once you hire
• Check zoning and your lease for outdoor storage and customer pickup rules
• Tying up cash in slow-moving stock, buy small until you know what sells
• Check your state's rules on sales tax and any licensing for resellers or scrap handling

Startup costs are typically around $15,000 to $60,000, depending on the unit or yard you rent, the stock you buy and your tools and insurance. Buying small at first helps. These are estimates, not guarantees.

Monthly revenue is typically around $5,000 to $25,000, depending on how quickly stock sells, your prices and the mix of racking, pallet trucks and conveyors. Expect at least about 25 hours a week. These are estimates only.

Check with manufacturers or an engineer about inspection and load ratings before you sell used racking, and be clear about what is sold as-is. Also check zoning and lease rules for outdoor storage, insurance, and state sales tax or reseller licensing.