Risks when selling Stockpiles.

The opinions about stockpile sales is generally a hot topic, often highly charged by various couponers.

I want to share both sides, including my stance on this. Either way, selling is VERY RISKY. I feel that anytime there’s a gray/risky area, it pushes on the ethical aspect, posing as a questionable act. Never trust or rely on questionable acts!!

My view is that having a stockpile acquired by couponing is for you and your family’s needs. The BASIC PRINCIPLE of couponing is to help you save money, not meant for you to profit off those items. Yes, it is yours, you do whatever you like with it. It’s like buying an item, deciding you don’t want it anymore so you sell it online or at a yard sale…understandable.  It’s no different than buying clothes on sale with coupons and when you decide not to wear it, you sell it but there are times that you can’t do “just whatever you like with it”. There are rules and they are there for a reason. (For example: most coupons have “limit 4 like coupons per household” in their fine print. This curbs shelf clearing and allows everyone a fair chance to buy. Early bird gets the worm does NOT apply to this rule.)

Here’s where the problem lies…. manufacturer companies, such as P&G (Proctor & Gamble) prohibits anyone to sell their products, regardless if you used coupons or not.

Another reason why you can’t sell stockpiles and various items: If you have access to a military installation and you shop at their Exchanges and the commissaries and you sell items obtained from them, that is a violation of benefits. Items purchased are tax free, are lower priced and generally have decent coupons to go with that. Unfortunately, that is favorable for selling to make a bigger profit but extremely risky! Click HERE for the violation terms, specifically 6.10.1.  To file a report against someone who is selling items that were purchased from a military installation, click HERE.

Selling stockpile is NOT illegal to do however, there are certain laws, statutes and regulations by the city, county and state that may control this, as well as stipulations by the manufacturer companies.

There are many risks involved when selling and buying stockpiles:

1) If you are selling on a daily basis or weekly, you need to have a tax ID number obtained by the IRS. You have a business, a service to sell products for the general public. It does not matter how you obtained these items, at any time that you are selling items, you need a business tax ID because you are making a profit/income so you have to report it to the IRS. Failure to report can incur fines. Anyone who sells on a continuous basis on Facebook pages or on apps such as LetGo, without proper tax reporting, can be reported by anyone who sees those sales.

To file a report against someone who does not have a business tax ID or to find out if they have one, go HERE.

Call the city, county and state offices to find out if there are any regulations to having a business out of your home. There are certain restrictions you must adhere to or you can receive a citation to failure to comply. You may have to pay for a permit depending on how many times a year you do it. If you sold your stockpile twice a year, that is different because you are not a continual business. It’s like having a yard/garage sale so no tax ID is required.

Here are the local cities’ guidelines on garage sales. Most limit two sales per year and NO items may be purchased with the intent to resell. Failure to abide may result in a fine by the city:

Harker Heights, click HERE. For more questions or to report someone abusing these guidelines, call 254-953-5600.

Killeen, click HERE. For more questions or to report someone abusing these guidelines, call 254-501-7608 .

Copperas Cove, click HERE. For more questions or to report someone abusing these guidelines, call 254-542-8966.

2) Your customers can have a bad reaction from an expired or outdated product and you can be sued in civil court to pay hospital expenses and/or reported by the IRS. Stockpiles are often stored in extreme temperatures (hot and cold) and causes them to go bad/rancid quickly. Places includes garages, bathrooms, storage sheds, basements and attics….these are the WORST places to sell out of! How long it has been stored in these types of temperatures??

3) There are sellers that switch liquids….for example, taking the Tide liquid out of the Tide bottle and replace with a generic detergent into the Tide bottle. Those items you see at a flea market? Yep, those places are notorious for switching genuine products for crappy fake liquids. Those 5 gallon Tide detergent? Yup, crap stuff.  P&G frowns upon that BIG TIME, therefore imposing their “no resale clause”. That Paul Mitchell or Biolage shampoo? You are probably buying Dollar Tree shampoo inside those fancy bottles. (notice those bottles say “authentic if sold by authorized retailers?” Do you consider flea markets an authorized retailer? I think not.

One of the popular websites that I visit often is Coupon Information Center. They are full of valuable information! This is where you can read tips on ethical couponing, updates on the latest fraudulent coupon arrests and even view all the counterfeit coupons that are being used! Click HERE to check it out! (The last bullet on the page shows that stockpile sales is strictly prohibited.)

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