If you are like me then you love the show Storage Wars. I love the characters on the show and I love the business side of it as well. They make it look so easy to make money! I love Barry Weiss for his style and Charisma. He is my favorite for sure. I also love Dave Hester for the pure and straight business man that he is. He is all about making money and I love that about him. He takes his business seriously and he should – I can relate and he definitely seems to be doing an amazing job of branding. Yuuup!
I of course wonder about the business side of this
Now as an accountant and someone who LOVES business I of course wonder about the business side of this. Let’s face it, these guys are buying storage units and taking a gamble hoping that they will be able to sell the stuff for more than they paid for it. So far so good, that much is pretty simple. Once they’ve bought the locker it’s time to go in and assess the value of what they got. When they’re finished they will probably have a lot of junk to throw away and what’s left is what they will be selling either out of their warehouse or on Ebay. The Assessed value determines what they will be selling these items for. In other words, that’s the price tag that goes on the item and that’s what you or I will pay if we want to buy it from them.
But what about the cost?
These items weren’t bought individually. A sum was paid for the storage unit and on the business side this cost has to be allocated to the surviving items that will be sold. My video here shows you how I would calculate this and offers a template which if you happen to be in this (or a related) business you will no doubt find to be a very helpful time saver.
What about QuickBooks?
In the video below I show you how I would use QuickBooks to account for the cash they have to take to the auctions as well as the inventory they buy and sell.
Get the template and a copy of the QuickBooks file in my Knowledge Store: