Tested but Not Working is Still a Great Investment for Liquidators

Whether you are a new liquidator or an established one, one category you probably have never invested in is “tested but not working”. The last two words are what usually hold you back since you think that there is no use of selling something that does not perform its intended function. However, by doing so, you will be missing out on a potential source of liquidation goods that can reel in a lot of money. To further convince you of this little-known fact, continue reading till the very last line.

How Profitable ‘Tested But Not Working’ Goods Really are

First off, you need to understand that ‘tested but not working’ products are those that have undergone and failed preliminary testing because of technical failures and/or physical damages. This means that there may be a little life in them yet. In fact, most of the lots that fit this description can easily be fixed with basic technical skills to work their best and get you the profits you want.

On the other hand, products that take more time and money to be repaired can be just as profitable when sold to the secondary market. For instance, if an old Dell desktop refuses to run despite your efforts to fix it, you can take it apart and sell it to others from different industries. Thanks to the growth of the spare parts market, rest assured that you will find a buyer for these inconspicuous gold mines.

eBay’s Top 5 Broken Items to Sell

eBay is one of the biggest marketplaces to sell your merchandise. What you probably did not know though is that the online marketplace has a large market for broken electronics. What is even more interesting is the fact that these items were not just listed; they were selling quickly and for a good profit. According to a user who made $800 within two weeks, the best five non-functional electronics you should definitely deal with are:

Non-Functioning Laptops

A laptop missing its keys or with a faulty RAM can be a turnoff to everyone but those who harvest parts and use them for other purposes. You can easily earn more than $500 by selling relatively new models that are no longer functional or in good condition.

Broken Gaming Controllers

Brand new gaming controllers can be too expensive for most, which is why some go for used gaming controllers. However, hardcore gamers are now investing a little time into customizing their own controllers. For that, they will need the parts of a controller to create their own. Gamers are also customizing their gaming consoles for the same purpose. With 34 million Americans categorized as gamers, rest assured that you will have a large audience to buy your broken game controllers and consoles.

Broken Smartphones

Non-functioning smartphones will be your biggest moneymaker. These can be harvested for parts since most models only differ by their software options. However, if the screen is intact and only a few tweaks are necessary, you can fix the phones before selling them for a hefty profit. In fact, you do not need to make the repairs yourself to get a little extra on your initial investment. That aside, since ‘tested but not working’ smartphones come with all their accessories, you can sell the latter for a profit. There is a huge market

Faulty Tablets

You probably expected to see tablets on this list. After all, these are the most lucrative electronics out there when in one piece. However, you should know that even those that do not function can be just as profitable. Parts from tablets can be sold to secondary markets or even back to their original manufacturers for a profit.

Children’s Learning Items

Okay, so not all of them may be electronics, but they can get you a lot of money once you start selling them. Even Hello Kitty cameras, which are hardly functional when brand new, can be sold for a profit. How, you ask? Simply because children love them. Parents too will probably invest in faulty children’s electronics because they have first-hand experience of the abuse a child can put their electronics through.

Buying ‘Tested Not Working’ Items

If what you had read so far inspired you to purchase ‘tested not working’ lots, the first thing you should learn is how to buy your merchandise. Sure, a salesperson can recommend certain pallets claiming that they will profit you. However, you need to know a few tips to determine which pallets are really worth your money.

Do Your Research

This should go without saying really. You need to download the manifest and determine whether 98% of the products included will be worthwhile if repaired or sold for parts. This could mean doing a little research to discover which goods are worth your time and money.

Find Out What is Wrong with the Products

Before ruling everything out as useless, find out what is wrong with the lot’s contents. This will help you determine whether or not they are of value. In case the condition is not listed in the leaflet, talk to the seller to find out as much as you can about this future investment.

Assess the Demand

If you have connections in the liquidation market, use them to find out the demand for your goods. This will give you an idea of how quickly your ‘tested but not working’ items will sell. Besides, it will alert other liquidators that you have something they may be interested in getting. So it really is a win-win situation for you.

Get as Much as You Can with Each Product

Make sure that what you purchase has more than just the core product. It should also include accessories such as the charger or travel leather case. You can make a fortune just selling these as your primary inventory while the electronics reel in the rest of your profits.

Choose a Reputable Provider

There are numerous places where you can get non-functional electronics for a decent price. For instance, you can check out the classifieds and visit garage sales. On the other hand, you can head to your local pawn shop and get a few things from there. However, both options will not be feasible if you are new to the liquidation market. Besides, pawn shops will try selling the broken technology for a higher price, reducing your profit margin. If you are still establishing yourself or cannot make decisions on the fly, the best thing to do is find a group of sellers or a marketplace that is known for its reputation and high-quality products; yes, even the broken ones. Dealing with the right seller will ensure that you get the right merchandise to sell.

Calculate Other Costs

Aside from the cost of the pallet, you need to add additional expenses, such as those of shipping the merchandise. By including these with your overall cost, you will easily determine your profit margin and ultimately the worth of the pallet.

Read Between the Lines

You should be able to read through sugar-coated phrases and half-truths to determine just how profitable your purchase will be. This entails reading through reviews from the seller and finding out just how bad is the products’ condition. You should especially look for testing guarantees. If the original seller did not test the products, chances are they may be more damaged than you think.

Avoid Merchandise that Has Been Tampered with

If the seller states that the goods have been refurbished but now cannot run properly, do not make the mistake of buying them. There is a very good chance that they bought the lot with the same hopes only to discover that they could do nothing about it.

Selling Faulty Merchandise

After you buy the ‘tested but not working’ pallet, it is time for you to sell it. Here are a few things to ensure that you get the most for your money.

Remember that You Have Tough Competition

Before you start learning how to sell pallets properly, you need to remember that you are not alone in this market. There are specialized companies that buy or trade damaged electronics directly from their original users. Even the devices’ manufacturers will have their own programs where they purchase old models, refurbish them and then re-sell them. So you need to work on an edge for your products to ensure that they sell.

Choose the Right Channels for Selling Your Goods

According to MSN Money, you can sell gadgets for money regardless of their condition through the proper channels. If you are selling in person, you can choose any of the following profitable methods:

Craigslist – You can post ads for your merchandise for free. Just make sure that your ads are descriptive and include a photo or two to increase your chances of securing a sale.

Yard Sales – The old-school way of selling liquidated items is through a garage sale. However, you need to market your sale to ensure a high volume of sellers.

Local Resellers – If you want to avoid the hassle of marketing and preparing your ‘tested but not working’ goods, one thing you can do is sell it to another liquidator. Just make sure to carry out negotiations effectively to get more profit. On the other hand, if you prefer the wide reach of the internet, you can always choose the following to sell your broken electronics.

eBay – eBay is a liquidator’s best friend. Not only will you find individual buyers for your merchandise, but you can easily connect to other sellers there and hand them over your whole pallet for a good price. However, keep in mind that eBay does have a few fees attached to its services, so calculate these in your cost first.

Specialized Electronics Resellers – There are hundreds of services that offer to buy broken electronics, such as Gadget Salvation. While some of these may specialize in specific gadgets, such as Apple devices , others accept all types of electronics regardless of brand.

Your Own Store – If you have an online store for your liquidated goods, you are welcome to use that to sell your ‘tested but not working’ pallet’s contents. However, you need to rely on your own marketing efforts and ensure your site’s visibility through techniques like search engine optimization. After all, what is the use of your goods if your buyers do not know that they exist?

Provide Deals to Make Your Offerings Worthwhile

You can use accessories and similar things to make your products more appealing. If you would rather spare these for a little extra cash on the side, you can bundle a few products together and sell them in one go. For instance, you can sell three Xbox 360 units for $200. This will save you from spending on shipping in case you are stuck with this cost.

Be Honest and Descriptive While Writing Reviews and Descriptions

Remember how you had a tough time determining whether or not a lot was worthwhile? Do not do the same with your clients! You should provide sufficient descriptions and be honest while writing about your products. If they do not work, say so. If one person does not make use of your products, there is always someone else who will buy from you.

Parting Words

As you can see, there is still hope for ‘tested but not working’ goods, so you should consider them the next time you head to a liquidator’s marketplace. Just remember to follow the buying and selling tips mentioned here and you will not have to worry about these damaged goods loitering around in your inventory. However, whatever what you do, stay honest; your reputation will be built by your clients, so do not cheat them. 

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