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How to Start a Bin Store Business

A bin store business is a retail outlet specializing in selling surplus inventory or returned items at discounted prices, typically organized in large bins or containers for customer browsing.

These stores offer a wide range of merchandise, including clothing, electronics, home goods, and more. Bin stores operate on a self-service model, allowing customers to sift through bins to discover hidden treasures and great deals.

Bin store businesses capitalize on excess inventory or returned items from manufacturers, retailers, and wholesalers, providing them with a means to liquidate stock and recoup some of their investment. By offering discounted prices, bin stores attract budget-conscious shoppers seeking bargains and unique finds.

Steps on How to Start a Bin Store Business

  1. Conduct Market Research

Conducting market research for a bin store business is vital to understanding your target market, competition, and industry trends.

First, you need to clearly outline the goals of your market research, such as understanding customer preferences, identifying competitors, and assessing market demand.

Determine the demographics, psychographics, and behaviors of your target customers, including age, income, lifestyle, and shopping habits.

Next, you are expected to research existing bin stores and other retail competitors in your target market to understand their offerings, pricing strategies, and market positioning.

Gather feedback from potential customers through surveys, focus groups, or interviews to understand their needs, preferences, and shopping behaviors.

Stay informed about industry trends, consumer preferences, and market dynamics related to discount retailing and bin store businesses.

Evaluate potential locations for your bin store, considering factors such as foot traffic, competition, demographics, and zoning regulations.

Use market data and customer feedback to estimate demand for your bin store’s products and services in your target market.

Lastly, conduct a financial analysis to assess the feasibility and potential profitability of your bin store business, considering factors such as startup costs, operating expenses, and revenue projections.

a. Who is the Target Market for Bin Store Business?
  • Bargain hunters looking for discounted merchandise.
  • Frugal shoppers seeking affordable alternatives to traditional retail.
  • Students or young adults on a tight budget.
  • Families looking to save money on everyday purchases.
  • Seniors living on fixed incomes.
  • Thrift shoppers interested in secondhand goods at low prices.
  • Value-conscious consumers who prioritize saving money over brand loyalty.
b. Is Bin Store Business a Profitable Business?

The profitability of a bin store business depends on various factors such as location, inventory selection, pricing strategy, and operational efficiency. While profit margins may vary, data suggests that bin store businesses can be profitable ventures.

For example, industry reports indicate that discount retailing continues to grow, with consumers increasingly seeking value-oriented shopping experiences.

By effectively managing costs, offering attractive discounts, and providing exceptional customer service, bin store businesses have the potential to generate solid profits in the retail industry.

c. Are There Existing Niches in the Industry?

Yes, there are niche ideas when it comes to bin store line of business, and here are some of them:

  • Vintage Clothing and Accessories
  • Artisanal Handcrafted Goods
  • Eco-Friendly and Sustainable Products
  • Upcycled and Repurposed Items
  • Specialty Foods and Gourmet Ingredients
  • DIY Craft Kits and Supplies
  • Tech Gadgets and Accessories.
d. Who are the Major Competitors?
  • Building #19
  • Burlington Stores (formerly Burlington Coat Factory)
  • Marshalls
  • Ross Stores
  • TJ Maxx
  • HomeGoods
  • Nordstrom Rack
  • Ollie’s Bargain Outlet
  • Bargain Hunt
  • Five Below
  • Dirt Cheap
  • Treasure Hunt
  • Gabriel Brothers
  • Big Lots
  • Tuesday Morning
  • The Outlet Shoppes of the Bluegrass
  • Discount Outlet
  • Ocean State Job Lot
  • Dirt Cheap
  • Roses Discount Stores.
e. Are There County or State Regulations or Zoning Laws for Bin store Business?

In the United States, bin store businesses may be subject to various policies, regulations, and zoning laws that can impact their operations.

While there are no specific regulations targeting bin stores, general business regulations apply, covering aspects such as business licensing, sales tax collection, and compliance with consumer protection laws.

Zoning laws can also affect bin stores, as they dictate where certain types of businesses can operate within a community.

Bin stores may be classified under retail or commercial zoning categories, which regulate factors such as building size, signage, parking requirements, and permissible operating hours.

Additionally, zoning laws may impose restrictions on the types of products that can be sold or the layout and appearance of the retail space.

Environmental regulations may also come into play, particularly if bin stores handle certain types of merchandise that require special handling or disposal procedures.

For example, regulations governing hazardous materials or waste management may apply if bin stores deal with products that pose environmental risks.

Overall, while there are no specific policies targeting bin stores, these businesses must adhere to a range of regulations and zoning laws that govern various aspects of their operations to ensure compliance and avoid potential legal issues.

f. Is There a Franchise for Bin store Business?

No, there are no franchise opportunities for the bin store business.

g. What Do You Need to Start a Bin Store Business?
  • Business Plan
  • Retail Space
  • Inventory
  • Shelving and Bins
  • Point-of-Sale System
  • Pricing Strategy
  • Marketing Plan
  • Business License
  • Insurance
  • Staffing
  • Accounting System
  • Supplier Relationships.
  1. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a bin store business are;

Creative Bin Store Name ideas
  • Cheap Ware® Bin Store, Inc.
  • Rowe Yorke™ Bin Store, LLC
  • Maurice Adams© Bin Store, Inc.
  • Shawn Miller® Bin Store, Inc.
  • Jack Townsend® Bin Store, LLC
  • Folly Alison™ Bin Store, Inc.
  • Owen Silas® Bin Store, Inc.
  • Creflo Giovani™ Bin Store, LLC
  • Tony Martins© Bin Store, Inc.
  • Theo Blow® Bin Store, Inc.
  • One Dollar® Bin Store, Inc.
  • Three Guys™ Bin Store, Inc.
  • Jose Mario™ Bin Store, LLC
  • John Hannah® Bin Store, Inc.
  • Rose Andrew® Bin Store, Inc.
  • Mark Shannan© Bin Store Company, Inc.
  • West Brownson® Bin Store, Inc.
  • Nicolas Page© Bin Store, LLC
  • Collins Pablo® Bin Store, Inc.
  • Cheap Buy® Bin Store, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for Bin Store Business?

The ideal business structure for a bin store business is determined by a variety of factors, including the size of the company, the number of owners, the level of personal liability the owners are ready to accept, and the tax consequences of the various business structures.

However, we normally recommend that you start the business with minimal liability. An LLC is a hybrid corporate form that provides the flexibility of a partnership while also providing its owners with limited liability protection.

An LLC can have one or more owners, and the owners are not personally accountable for the debts or liabilities of the business. This business form is frequently used for small to medium-sized organizations.

b. Steps to Form an LLC
  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.
c. What Type of License is Needed to Open a Bin Store Business?
  • Business License
  • Retail Sales License
  • Resale Permit
  • Occupancy Permit
  • Zoning Permit
  • Signage Permit
  • Health Department Permit
  • Fire Department Permit
  • Alcohol License (if applicable)
  • Music License (if applicable).
d. What Type of Certification is Needed to Open a Bin Store Business?

You don’t need any certification to start a bin store business.

e. What Documents are Needed to Open a Bin Store Business?
  • Business Plan
  • Business License Application
  • Retail Sales Permit Application
  • Resale Certificate
  • Occupancy Permit
  • Zoning Permit
  • Lease Agreement
  • Certificate of Insurance
  • Employee Identification Number (EIN) from the IRS
  • Sales Tax Permit
  • Health Department Approval
  • Fire Safety Inspection Certificate
  • Signage Approval
  • Supplier Contracts or Agreements
  • Employee Handbook.
f. Do You Need a Trademark, Copyright, or Patent?

For a bin store business, the need for a trademark, copyright, or patent depends on the specific aspects of your business and the services you provide.

If you have a unique company name, logo, or tagline associated with your bin store business that you want to protect, you might consider registering a trademark.

In the context of a bin store business, you might consider copyright if you create original marketing materials, website content, educational resources, or software.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Bin Store Business?

The cost to start a bin store business can vary widely depending on factors such as the size of the business, location, supplies needed, staffing costs, marketing expenses, and more.

However, a rough estimate could range from $50,000 to $150,000 or more, depending on the size (number of bins and pickup trucks) and scope of the business.

b. What are the costs involved in Starting a Bin Store Business
  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $7,300.
  • Marketing, Branding, and Promotions – $5,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $5,400.
  • Rent/Lease – $60,000.
  • Operational Cost (salaries of employees, payments of bills et al) – $60,000
  • start-up inventory – $100,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Website: $600
  • Opening party: $3,000
  • Miscellaneous: $2,000.
c. What Factors Determine the Cost of Opening a Bin Store Business?
  • The size of the bin store business
  • The choice of location
  • The required licenses and permits
  • The cost of hiring and paying a business consultant and attorney
  • The cost of branding, promotion, and marketing of the bin store business
  • The cost of furnishing and equipping the bin store
  • The cost of the insurance policy covers
  • The cost of registering the business
  • Source of your supplies and ongoing expenses
  • The cost of recruiting and training your staff
  • The cost of the purchase and customizing of uniforms for your employees
  • The cost for the grand opening of the bin store business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not necessary to build a new facility for your bin store business, especially if you choose to operate from a rented warehouse or store facility. But, if you have the required finance, it will pay you to build your own warehouse or store facility.

The truth is that building or reconstructing a warehouse or store facility for your bin store business will allow you to come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Bin Store Business?
  • Rent or Lease Payments for the Retail Space
  • Utilities such as Electricity, Water, and Gas
  • Inventory Purchase Costs
  • Employee Wages and Benefits
  • Marketing and Advertising Expenses
  • Maintenance and Repairs for the Store and Equipment
  • Insurance Premiums for Property, Liability, and Workers’ Compensation
  • Accounting and Bookkeeping Services
  • Payment Processing Fees for Credit Card Transactions
  • Office Supplies and Miscellaneous Operating Expenses.
f. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $70,000 Per Year
  • Store Manager – $50,000 Per Year
  • Inventory Manager – $48,000 Per Year
  • Purchasing Manager – $47,000 Per Year
  • Marketing Coordinator – $45,000 Per Year
  • Maintenance Technician – $40,000 Per Year
  • Administrative Assistant – $40,000 Per Year
  • Sales Associates- $36,000 Per Year.
g. How Do You Get Funding to Start a Bin Store Business?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from, the government, donor organizations, and angel investors
  • Source for soft loans from your family members and your friends.
  1. Write a Business Plan

a. Executive Summary

Mark Shannan™ Bin Store Company, LLC is a retail establishment specializing in offering discounted merchandise organized in large bins.

Located in Silver City, New Mexico, our store caters to budget-conscious shoppers seeking affordable deals on a variety of goods.

Silver City, New Mexico, with its growing population and diverse consumer base, presents a significant market opportunity for Mark Shannan™ Bin Store Company, LLC. Our strategic location and competitive pricing aim to capture a share of the local retail market.

Mark Shannan™ Bin Store Company, LLC will utilize a multi-channel marketing approach, including local advertising, social media engagement, and community events. We aim to build brand awareness and attract customers through targeted marketing campaigns.

b. Products and Service

Mark Shannan™ Bin Store Company, LLC sources surplus inventory and returns items directly from manufacturers, retailers, and wholesalers to offer discounted prices to customers.

Our unique self-service model allows customers to browse through bins to discover hidden treasures and great bargains. We differentiate ourselves by offering a wide range of merchandise at deeply discounted prices.

Our low overhead costs and strong supplier relationships enable us to provide exceptional value to customers while ensuring profitability.

c. Mission Statement

At Mark Shannan™ Bin Store Company, LLC, our mission is to provide budget-conscious shoppers in Silver City, New Mexico, with access to quality merchandise at unbeatable prices.

We are committed to offering a unique shopping experience where customers can discover hidden treasures and great bargains while enjoying exceptional customer service.

Vision Statement:

Our vision at Mark Shannan™ Bin Store Company, LLC is to become the preferred destination for discount shopping in Silver City, New Mexico, known for our diverse selection of merchandise, competitive pricing, and commitment to customer satisfaction. We aspire to create a thriving hub where shoppers can find value, convenience, and excitement with each visit.

d. Goals and Objectives

At Mark Shannan™ Bin Store Company, LLC, our goals and objectives are focused on delivering exceptional value and customer satisfaction.

We aim to establish ourselves as the premier destination for discount shopping in Silver City, New Mexico, by offering a diverse selection of quality merchandise at unbeatable prices.

Our objectives include building brand awareness, expanding our customer base, and achieving sustained growth and profitability through strategic marketing initiatives and operational excellence.

e. Organizational Structure
  • Chief Operating Officer (Owner)
  • Store Manager
  • Inventory Manager
  • Purchasing Manager
  • Marketing Coordinator
  • Administrative Assistant
  • Maintenance Technician
  • Sales Associates.

Marketing Plan

a. SWOT Analysis
  • Our self-service bin store concept offers a differentiated shopping experience, attracting customers seeking bargains and unique finds.
  • By sourcing surplus inventory and returned items, we offer merchandise at deeply discounted prices, providing value to budget-conscious shoppers.
  • With a wide range of merchandise including clothing, electronics, and home goods, we cater to a broad customer base, enhancing our appeal and market reach.
  • Situated in Silver City, New Mexico, with high foot traffic and accessibility, our store benefits from a prime location, increasing visibility and customer traffic.
  • We prioritize exceptional customer service, ensuring a positive shopping experience and fostering customer loyalty and retention.
  • As a new entrant in the market, building brand awareness and establishing credibility may pose initial challenges.
  • Managing inventory turnover and maintaining product freshness may require careful monitoring and adjustment to minimize losses.
  • Reliance on suppliers for surplus inventory and returned items may result in inconsistent availability and fluctuations in product assortment.
  • Silver City, New Mexico, presents opportunities for market expansion and customer acquisition, driven by population growth and increasing consumer demand.
  • Leveraging online platforms for marketing and sales can extend our reach beyond the local market, tapping into broader customer segments.
  • Collaborating with local businesses, community organizations, and online influencers can enhance brand visibility and attract new customers.
  • The retail industry is highly competitive, with established retailers and online marketplaces posing threats to market share and customer acquisition.
  • Fluctuations in economic conditions, including changes in consumer spending habits and disposable income, may impact purchasing behavior and overall demand.
  • Disruptions in the supply chain, such as shortages or delays in obtaining inventory, can adversely affect product availability and business operations.
b. How Do Bin Store Businesses Make Money?

Bin store businesses make money by selling discounted merchandise sourced from surplus inventory and returned items.

Customers purchase goods directly from large bins, where items are typically organized by category or type. The business profits from the difference between the cost of acquiring inventory and the selling price to customers.

By offering attractive discounts and providing a unique shopping experience, bin store businesses attract budget-conscious shoppers and generate revenue through sales.

c. Payment Options
  • Credit and debit cards
  • PayPal
  • Apple Pay and Google Wallet
  • Gift cards and store credit
  • Installment payments
  • Cash
d. Sales & Advertising Strategies
  • Offer regular promotions such as “Buy One, Get One Free” or percentage discounts to attract customers and encourage repeat visits.
  • Implement a loyalty program where customers earn points for every purchase that can be redeemed for discounts or free merchandise.
  • Utilize social media platforms to showcase products, share promotions, and engage with customers. Create visually appealing content and encourage user-generated content through contests or giveaways.
  • Advertise in local newspapers, magazines, and community newsletters to reach potential customers in the area. Consider sponsoring local events or participating in community fairs to increase brand visibility.
  • Build an email list of customers and send regular newsletters with updates on new arrivals, promotions, and special events.
  • Use eye-catching signage and displays to highlight promotions, best-selling items, and new arrivals. Utilize clear and concise messaging to attract attention and drive sales.
  • Collaborate with complementary businesses such as local cafes, boutiques, or fitness centers to cross-promote each other’s products or services. Offer joint promotions or discounts to attract new customers and expand your reach.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

Retail pricing strategy for bin store business focuses on offering deeply discounted prices on a wide range of merchandise sourced from surplus inventory and returned items.

We aim to provide exceptional value to our budget-conscious customers by ensuring that our products are affordably priced, allowing them to enjoy significant savings on their purchases.

b. How Much Profit Do Bin Store Business Owners Make a Year?

The profit that bin store business owners can make in a year depends on several factors, including the size of the business, operational costs, pricing strategy, market demand, and the volume of items sold.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the bin store business and its sales volume
  • The location the bin store business is covering
  • The management style of the bin store business
  • The business approach of the bin store business
  • The advertising and marketing strategies adopted by the bin store business.
  • The number of years the bin store business is in business
d. What is the Profit Margin of a Bin Store Business?

Generally speaking, the profit margin for a bin store business can range from 15% to 40% or more. However, it’s important to note that profit margins can vary significantly based on individual circumstances and industry conditions.

e. What is the Sales Forecast?
  • First Fiscal Year (FY1): $280,000
  • Second Fiscal Year (FY2): $400,000
  • Third Fiscal Year (FY3): $550,000
  1. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Bin Store Business?
  • The demography of the location
  • The demand for cheap items and services in the location
  • The purchasing power of businesses and the residence of the location
  • Accessibility of the location
  • The number of bin store businesses in the location
  • The local laws and regulations in the community/state
  • Traffic, parking, and security et al
b. What State and City is Best to Open a Bin Store Business?
  • Miami, Florida
  • Chicago, Illinois
  • Los Angeles, California
  • Las Vegas, Nevada
  • New York City, New York
  • Fort Worth, Texas
  • Seattle, Washington
  • Hoboken, New Jersey
  • Washington, D.C.
  • Nashville, Tennessee
c. What Equipment is Needed to Operate a Bin Store Business?
  • Shelving Units
  • Bins or Containers
  • Point-of-Sale (POS) System
  • Cash Register or Cash Drawer
  • Barcode Scanner
  • Pricing Gun or Label Maker
  • Shopping Baskets or Carts
  • Security Cameras and Alarms
  • Signage and Display Materials
  • Computer and Printer
  • Office Furniture such as desks, chairs, and filing cabinets for administrative work.
  • Lighting Fixtures
  • Safety Equipment such as fire extinguishers, first aid kits, and emergency exits.
  • Mobile Devices such as tablets or smartphones
  1. Hire Employees

In a bin store business, hiring employees is important for various reasons. Firstly, it ensures the efficient operation of the store by having staff available to assist customers, maintain cleanliness, and manage inventory.

Secondly, employees contribute to providing excellent customer service, answering inquiries, and processing transactions.

Additionally, having a team allows for better security and theft prevention measures. Overall, employees play a crucial role in creating a positive shopping experience and driving the success of the bin store business.

  1. Launch the Business Proper

Organizing a launch party for your bin store business is crucial for several reasons. Firstly, it generates excitement and buzz around your new venture, attracting potential customers and building anticipation for your opening.

Secondly, it provides an opportunity to showcase your store’s unique offerings and create a memorable experience for attendees.

The truth is that a launch party can help forge connections with the local community, media, and influencers, increasing visibility and fostering goodwill towards your brand, ultimately leading to increased foot traffic and sales.

a. What Makes a Bin Store Business Successful?
  • Choosing a prime location with high foot traffic and visibility
  • Offering a wide range of merchandise across various categories
  • Providing deeply discounted prices on surplus inventory
  • Delivering exceptional customer service
  • Implementing targeted marketing strategies, both online and offline.
b. What Happens During a Typical Day at a Bin Store Business?

During a typical day at a bin store business, various activities occur to ensure smooth operations and excellent customer service. Staff members begin by restocking merchandise and organizing bins to maintain an attractive and orderly store layout.

Throughout the day, they assist customers with inquiries, provide product recommendations, and process transactions efficiently.

Furthermore, inventory management tasks such as receiving new shipments, inspecting products, and replenishing stock take place.

Marketing efforts may include updating signage, implementing promotions, and engaging with customers on social media platforms. Overall, the day is filled with activities aimed at delivering a positive shopping experience and maximizing sales.

c. What Skills and Experience Do You Need to Build a Bin Store Business?
  • Experience in retail management, including inventory control, sales operations, and customer service.
  • Strong business acumen, including knowledge of financial management, marketing strategies, and business planning.
  • Skills in merchandising and product display
  • The ability to negotiate with suppliers and secure favorable terms for purchasing surplus inventory and returned items.
  • Effective sales skills, including the ability to upsell and cross-sell products.
  • Excellent customer service skills, such as communication, empathy, and problem-solving.
  • Strong organizational skills.
  • Knowledge of marketing principles and strategies, including online and offline tactics.
  • Leadership skills, including the ability to motivate and inspire staff, delegate tasks, and make sound decisions.
  • The ability to adapt to changing market conditions, customer preferences, and business challenges.