When I first got into LEGO as an AFOL I was looking at all of the Star Wars sets that I had missed and how much they cost. It became necessary to figure out a way to get the sets cheaper or make more money. I knew that some people must be making money buying bulk lots and taking out the stuff they wanted and selling the rest. That seemed like 2 birds with one stone. I looked at the bulk lots on Ebay, realizing that most of what I would get from these guys were common pieces. So I started looking at bigger lots, somewhat intimidated by their cost. I figured, however, if an Ebayer was getting $10 for a pound maybe I could make some money just throwing stuff in a box, easy money. I made a purchase of about 50 lbs for about $350 because I saw some Star Wars sets and minifigures in there. Oh boy, easy money and some treasures of my own. Boy, was I wrong. The money is anything but easy. I quickly discovered that out of my 50 lbs of mixed LEGO, at least 5 lbs were easily recognizable as not building bricks at all.
Tinker toys, K'Nex, Hot Wheels, plastic army men, broken action figures, Lincoln logs, playing cards, thumb tacks, thorny burrs and even broken glass was mixed into the ABS blocks. On top of all that junk, the real problems started. All of the Mega Blocks, BTR, and assorted knock off blocks knocked another 5+ lbs out of the lot. That's at least 20% of my precious blocks that was basically trash. As you filter through, you discover broken bricks, severely teeth marked ones and yellowed pieces. profits are getting slimmer by the minute. Ok, so I regrouped and focused on the sets that were obviously present. I pulled out the stuff I immediately recognized most of a TIE Interceptor, a little car, Jedi Interceptor with Hyperdrive ring, half an ARC Fighter, etc. All of these I scattered around me like ancient peoples paying homage to their creator. How do I go from lots of partial sets to lots of complete sets that I can flip to make back the money that I sunk into this thing? Well first I needed to figure out what was missing.
So, I looked at instruction books to see what steps I needed to take to complete them and what pieces were missing from there. That's an awful way to do it. So I took apart the sets I had figured out and checked the inventory against Bricklink. I discovered what was missing, and that sometimes kids substitute pieces in the middle of a build. Now that I knew what was missing, time to turn back to 20 lbs of assorted bulk. digging through mixed bricks looking for the piece or pieces I need was time consuming and futile. Time to sort them out to make it easier. My wife and I sorted that 20 lbs of pieces by color. We had 10+ bags of pieces separated loosely by color (old and new colors mixing futilely.) That made it easier to look for pieces, but still sometimes wasting a lot of time trying to pick out a small piece in a big bag. After exhausting my patience, I turned to Bricklink to acquire the pieces I needed, dumping more money into this hole. Eventually I sold a bunch of sets I made from this and a few other bulk lots.
Between the Bricklink orders I placed to complete them and the fees and shipping, I think I made some money. My book keeping was pretty terrible. But it all taught me some things. Some of these things I learned could help some people just starting out trying to find treasure in Bulk lots. So, you're looking at a bulk lot that you found on Craigslist, Ebay, a garage sale, another auction or whatever. How should you evaluate it? So with these factors, let's talk about how they factor into the valuation. an average lot is usually in the $4-$6 per lb range. Average lots show some partial sets, some minifigures, maybe a few instructions, relatively clean, with not a lot of obvious non LEGO stuff. Depending on the quality and quantity of the better stuff, you might increase your valuation, but remember you're not paying top dollar for what you see, because there's still a lot of work to come. Plus, you're going to get some amount of stuff you don't want. I have been known to go as low as $2-$3 a pound for stuff that had no obvious sets, mediocre looking or no obvious minifigures and excess junk.
Then again, I have gone as high as $10 a lb for lots of minifigures and several mostly complete sets of some value. Some people stick to a hard $5 lb. Some lots of only minifigures I have seen sold for close to $100 lb. Figure out your comfort level and stick to it. Be prepared to have wasted your money on a big group of Mega Blocks. STEP 2: Sorting and figuring out what you have Once you get the lot, now you have to do something with it. Boxes full of bulk sitting in the garage is just hoarding. You're doing this to make your money work for you. So, I start by trying to pull out all the non LEGO, but also anything that gives me a good idea of what is there. Pull out minifigures, instructions, partial sets and set them aside. I bag the partial sets, with the minifigures and instructions wherever possible. I would never again sort by color. Finding a red 1x1 modified tile with clip in a big bag of red parts is much harder than looking through a bag of 1x1 modified tile with clips of assorted colors.
Instead I start by throwing all the flats in one box. Slopes go in a second box. Bricks are a third box, etc. It's the most general sorting at first. As I go, I look for unique identifiers of sets like printed pieces or unusual shapes. Once the initial sorting is accomplished, I sort again by element. The best way to make back the bulk of your purchase price is to complete the sets that you received. Some people will complete everything that they can, others disdain anything below a certain dollar amount. It's up to you how far down the rabbit hole that you are going to head. Once you get your sets, you need to figure out what is missing. Even if the set looks complete, it is best to verify. Some people will make substitutions in the middle of a set. Your customers may not appreciate substitutions, especially if there are megablocks in the middle of a build. So, it's time to take them apart to verify the inventory. If the sets are partial, you definitely should take them apart to figure out how much is missing.
Look through your new bulk to see if you can find the rest. Focus on the expensive sets first. Check through your minifigures, instructions, and interesting pieces to see what sets may have been broken down entirely and see if they are worth reconstituting. You could do another survey of your bulk to see if the seemingly random bulk is hiding some treasure. I look for the part numbers on the interesting pieces. Finding the part number can be difficult, since it's usually inside of the LEGO piece and hard to spot, except with the right light. If the piece appears in multiple sets, I check for context with other pieces in the lot. Again, the interesting pieces generally have a unique shape, sticker or printing. If you can't complete them this way, or even with other bulk you might have, then you have to decide if sinking some more money into them is worthwhile. Does spending $10, $20, or $50 more make sense? Only you know for sure, but you've already dug a hole into your resources and time.