Reselling Tools

Do you have a passion for construction and tools? Well, you may be able to turn that into a profitable business.

Selling used tools can be an incredibly lucrative side hustle. So, if you’re interested in learning more about reselling tools, you’ve come to the right place.

In this article, we’ll walk you through everything you need to know about launching this venture. We’ll also cover the benefits and drawbacks of the side hustle.

An Overview of Reselling Tools: A Primer

If you’ve ever remodeled your home, you know how expensive tools can be. It may cost an arm and a leg just to buy a few screwdrivers and saws.

Add to that a couple of power tools and you risk breaking the bank. That’s because the equipment usually consists of high-quality steel.

Not only is the material expensive, but it’s also pricey to manufacture and shape.

On top of that, you only get to use the equipment for a short period before you stick it back in storage.

That’s why many people avoid buying state-of-the-art tools outright. They prefer to rent or purchase used equipment instead.

So, if you’re interested in reselling pre-owned tools, you may have a golden opportunity on your hands.  

How Much Can Reselling Tools Earn You?

According to Statista, the second-hand power-driven hand tool market was worth $307.7 million in 2020. Plus, it projects that this number will grow to about $346.9 million by 2024.

That means it’s a steadily growing industry, with plenty of opportunities up for grabs.

However, your exact earning potential will depend on a couple of factors. For starters, it’s based on the types of equipment you have available.

That’s because some tools for sale are much more in demand than others. Here’s a list of some of the best tools to sell:

• Chainsaws
• Heat guns
• Combo power tool sets
• Jigsaws
• Impact wrenches
• Side grinders
• Polishing wheels

Moving on, the state of the tools will also come into play. As a general rule, if the device is in perfect condition, you can sell it for 85% to 95% of the original sale price.

Yet, if your tools are in poor condition, the resale value drops to about 50%.

How Much Does it Cost to Start a Side Hustle Reselling Tools?

There are a few costs associated with reselling equipment. For starters, you should consider the cost of the tools.

Ideally, you should already have a sizable collection that you plan on selling. Yet, if that’s not the case, you can try to find discounted equipment.

Look for wholesale products that won’t break the bank. Plus, you can even try buying in bulk.

Other than that, you need to think about licensing.

Depending on where you live, you may need to apply for permits. This is especially true if you plan to rent or lease out the tools.

That’s why it’s a good idea to check your state regulations before you launch the venture.

Besides that, you need to take maintenance costs into account. You have to perform regular check-ups on your equipment to ensure it operates well.

Moving on, you may have to invest in a few spare parts for your tools. That way, you can repair them in a flash and list them back on the market.

Finally, if you’re selling a large collection of tools, you’ll need a safe place to store them. That may mean extra storage locker expenses.

Where Can You Resell Tools?

Reselling used tools should be a walk in the park. Yet, there are still a few details that you may need to hammer out.

For example, you have to decide where to sell the equipment.

Where to Independently Resell Tools

There are quite a few spots where you can sell pre-owned tools independently. First up, you can choose to sell your items to a physical shop.

For instance, your local hardware store should be able to take the used equipment off your hands.

Other than that, there are many offline options. These include:

• Pawn shops
• Garage sales
• Flea markets
• Auction houses

Moving on, some people prefer to sell items online. In that case, you can create your own personal online marketplace to move the tools.

Gig Economy Companies That Help to Resell Tools

Selling independently can require a large time commitment. So, if you’re a busy professional you may want to consider using a gig economy company.

There are countless options when it comes to selling your tools with the help of a third-party platform.

For example, many people opt for reselling on Amazon. That’s because the platform has millions of active users on the hunt for deals.

Other than that, reselling on eBay is also a great option.

Yet, since these platforms don’t specialize in tools, it may take a while to find potential buyers. For that reason, when you’re in a rush, try using one of these services instead:

• SawMillCreek
• Craigslist
• Facebook Marketplace
• OfferUp
• Nextdoor

Why You Should Consider Reselling Tools As a Side Hustle

There are several advantages to reselling pre-owned tools. In this section, we’ll cover the main benefits.

• Quick Cash: With this venture, you should be able to generate a cash income quickly.
• Flexible Schedule: As a reseller, you’ll get to choose your own working hours. This makes it an amazing side hustle.
• Stable Market: People are always going to need tools. So, keeping the business running should be a walk in the park.

Problems With Reselling Tools

Sadly, there are also a few drawbacks to this venture. In this section, we’ll discuss the disadvantages of reselling used tools.

• Loss of Value: No matter how well you take care of your tools, you won’t be able to resell them for the full market sale price.
• Inconsistent Income: With this venture, it’s tough to calculate your monthly earning potential.
• Shipping Costs: It can be expensive to ship tools across state lines.

Frequently Asked Questions