How to Start an Appliance Store: New, Used and Scratch-and-Dent Appliance Business
How to start an appliance store or home appliance business
In this article
To start an appliance store, pick a model: new appliances (through a buying group or distributor), used and refurbished, or scratch-and-dent / overstock. Then register the business, secure a showroom or warehouse, line up suppliers, offer delivery, installation and haul-away, and market locally and online. Startup costs range from about $20,000 for a used appliance shop to $250,000+ for a new-appliance showroom.
Choose your model
| Model | How it works | Startup cost |
|---|---|---|
| Used / refurbished | Buy, repair, clean and resell | Lowest |
| Scratch-and-dent / overstock | Buy damaged-box or returned units in bulk | Low to medium |
| New appliances | Authorised dealer through distributors or buying groups | Highest |
| Online / marketplace | Sell through listings with local pickup | Low |
Used and refurbished stores pair well with an appliance repair business: see How to start an appliance repair business.
Step 1: Register and get licensed
LLC, EIN, business license, sales tax permit and general liability insurance. If you install gas appliances, you may need a licensed installer.
Step 2: Find suppliers
- Appliance distributors and buying groups (for new)
- Retail return and overstock liquidators (for scratch-and-dent)
- Estate sales, landlords, remodelers and trade-ins (for used)
Step 3: Location and space
A warehouse-style space with a loading dock keeps costs down. Showrooms in visible retail areas cost more but attract walk-ins.
Step 4: Startup costs
| Item | Rough cost |
|---|---|
| Lease deposit and setup | $5,000 – $30,000 |
| Initial inventory | $10,000 – $150,000+ |
| Box truck or trailer for delivery | $10,000 – $40,000 |
| Dollies, tools, repair parts | $1,000 – $5,000 |
| Point of sale and website | $1,000 – $5,000 |
| Insurance and licenses | $2,000 – $5,000 |
Step 5: Services that boost profit
Delivery, installation, haul-away of old appliances, extended warranties, customer financing and repair services.
Step 6: Marketing
- Google Business Profile with photos and reviews
- A website with your current inventory and prices
- Marketplace listings for individual units
- Landlords, property managers and contractors (bulk buyers)
- Promotions for holiday sale periods
Related: Is appliance repair a good business?.
Frequently asked questions
How do I start an appliance store?
Choose new, used or scratch-and-dent, register the business, find suppliers, get a space and offer delivery and installation.
How much does it cost to start an appliance business?
From about $20,000 for used appliances to $250,000+ for a new-appliance showroom.
Is selling used appliances profitable?
Yes, especially if you can repair units yourself and buy cheaply.
Where do appliance stores get inventory?
Distributors, buying groups, overstock liquidators and trade-ins.
Do I need a license to sell appliances?
A business license and sales tax permit; gas installations may need a licensed installer.
Want an appliance store website with online inventory built for your business?
I design and build fast, modern websites that turn visitors into customers, with booking, WhatsApp and automations built in. Tell me about your business.
Start a conversationWritten by Sachin Rawat
AI & automation engineer · websites, apps and motion design
I build AI agents, automations, websites, apps and motion design for businesses. These guides answer the questions people actually search, written from hands-on experience building them.
Work with meMore stories