How to Determine If You Should Buy From a Wholesaler

How to Determine If You Should Buy From a Wholesaler

By Clifford Woods

With all the current news regarding striving and faltering stores, considering liquidation sales is a profitable alternative.

 In the case of liquidation sales, things are not necessarily as they seem, so you will have to keep an eye out for the things below anytime you are at a liquidation sale.


What is a Liquidation Sale? To begin with, liquidation sales are usually managed by a liquidator who purchases the inventory in declining stores and then resells it on their own. Doing away with the goods is really a supplementary goal, at least in the beginning.

The main objective of liquidators is, needless to say, to make all of the profit they can. Therefore, products are not necessarily listed to sell, though eventually after some time they will simply want to get rid of their current inventory which means you can snag it for a cheap price.

Know the Real Price: To be able to offer a noticeable price cut, liquidators actually increase costs above the manufacturer's suggested retail price before listing any discount rates. Therefore, despite having a 10% discount, you may find yourself having to pay a lot more for the product than you might have before the sale began.

Since sales usually run for a few months, the liquidator has enough time to target consumers who do not know any better and make huge profits by offering small discount rates on overpriced items. When they finally get right down to real discounts, the majority of anything that you really wanted in the first place is going to be long gone. 

One more problem is that, since the store is not going to exist soon, all product sales are usually final. This means that, if you find that you have problems with your purchase, you will have to address the manufacturer instead of taking it back to the store.

Helpful Advice for Getting the Most Out of a Liquidation Sale: For anyone that is considering buying products from a liquidation sale, below is a list of a few guidelines to get the most out of your shopping experience:

1. Use a Credit Card to Buy: This is especially true for goods that will be shipped. In the event that your goods never arrive, you are able to go through your card company to get your cash back.
2. Watch Out for Extended Warranties: You need to be cautious about extended warranties. When it comes to liquidation sales, you need to be a lot more careful, as the guarantee might outlive the vendor. In many instances, it is probably best to just depend on the manufacturer's extended warranty, which is not affected by the merchant's shutting down.
3. Do Not Go to a Sale for the Sake of It: It is easy to be caught in the thrill of a sale and make buys that you will later on regret. The issue here is that, as mentioned above, liquidation sales are usually final and you will not have a chance to re-think your choice and return the item.
4. Check if You Have Gift Cards: Considering that the business is going out of business, time is running out for you to use your gift card. If you do not spend it before the liquidation sale comes to an end, your gift card is going to completely useless.
5. Research: Although it is possible to get a good price, it is just as likely that you will lose money. If you know what you would like to purchase then there is absolutely no reason for not knowing just how much you can get the item for somewhere else. This is especially important for those who want to resell the items themselves.

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Clifford Woods is the owner of Rapid-Liquidations
We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!



If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.

What is Voluntary Liquidation?

By Clifford Woods

Whenever a business dissolves, it is usually the consequence of compulsory liquidation processes. 

A creditor that has not been compensated for an order, and if the business continues to be unable to pay its debts completely, then the organization is liquidated, the assets sold off, and lenders paid for from the profits.


On the other hand, voluntary liquidation is another solution for many companies. With voluntary liquidation, it is the company that makes the decision to disband itself, and appoints a bankruptcy specialist as the liquidator.

The organization will stop its trade and the assets will be sold. When it comes to a retailer, it is vital that you sell off your stocks first. The proceeds can be used to pay off the expenses of the liquidation and then creditors; investors are left until last, and only get reimbursed if all creditors have been compensated first.

The Two Kinds of Voluntary Liquidation: There are two sorts of voluntary liquidation; creditors’ voluntary liquidation and members’ voluntary liquidation. A members’ voluntary liquidation takes place whenever there are plenty of assets to pay for all of the debts. The directors need to make a declaration of solvency for this kind of voluntary liquidation in order to be made use of.

A creditors’ voluntary liquidation, however, can only be done after a creditors’ conference is held. It is an extremely popular system for shutting down a business. The creditors might cast their vote by poll and can designate a liquidator or create a panel to keep track of the entire process.

What the Director Does: As soon as the liquidation process has started, the directors pass management of the business to the liquidator. They have to ensure that the liquidator knows how to recognize the assets and debts, as well as provide information on the company’s relationships and connections.

For example, they are going to have to show the liquidator just how the accounting system functions and might also have to produce title deeds for the building. Directors who would like to liquidate a company and want to continue in the exact same line of merchandise should remember that there are very tight rules about making use of the same company name.
‘Passing off’ is a criminal offense that indicates that the directors aim was to confuse customers or providers into thinking that they are working with the previous company.

It is occasionally possible to continue to work with the old name, however the liquidator must agree to this fact, and it might be required to gain a court judgment permitting it. Directors must also remember that any tax losses that have built up in the company are going to be lost when it comes to liquidation, whether it is a forced or voluntary liquidation.

The Advantages of Voluntary Liquidation: Liquidation is the final choice for the majority of businesses and is usually only considered after other available alternatives have been unsuccessful. 

On the other hand, it is certainly worth spending money on liquidation instead of simply stopping trade and ruining the company.

The choice to go into voluntary liquidation can protect the company directors from any allegations of wrongful investing, and guarantees that the company is correctly shut down; protecting it from any additional claims after the due process has been followed.

Voluntary liquidation is also a technique for dealing with shareholder conflicts. It may be useful as a method of dealing with the situation in a family business in which the children do not wish to take over the business and a sale of the business is not possible.
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Clifford Woods is the owner of Rapid-Liquidations
We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.

The Different Types of Consumer Goods

By Cliff Woods

An item is recognized as a consumer good if it is a real product, which is anything you can feel, hear, smell, see, or taste. In some instances there are different viewpoints on whether or not some goods regarded as real or intangible. Consumer goods are the products that are sold in stores or online to fulfill the wants and needs of people; the end-user.

Consumer goods are available in a wide selection of products which can include:

• Electronic Devices
• Utensils
• Apparel
• Food
• Home Products
• Paper

Types of Consumer Goods
Below are the six main types of consumer goods and what they involve. You should know all about the goods you are buying and selling in order to succeed in the liquidation business.

Type #1: Staple Goods These are products that are purchased routinely, just about every time you go to the store. Bread, milk, and several personal care products can be considered staple goods.

Type #2: Convenience Items Products that are readily available to customers, without any effort by the consumer; such as assembling the product, are considered convenience products. Typically, convenience goods are available in the category of items like cigarettes, fast foods, and frozen dinners. The products are sold by wholesalers in order to make them available to the consumers in a larger quantities. 

Because of the high purchase quantity, cost for each item is usually low and consumers often see no use in further research since more effort means less savings for the sake of convenience. From the seller's viewpoint, the low selling price of convenience goods ensures that profit for each unit purchased is low. As a result, vendors will make an effort to spread these items in bulk throughout as many stores as they possibly can.

Type #3: Shopping Merchandise These include goods shoppers buy and take in on a less regular basis when compared with convenience items. People are ready to take more time finding these types of items considering they are fairly more costly compared to convenience items. Since people buy less often and are ready to shop around to find these items, the target audience is a lot smaller compared to that of convenience products. As a result, vendors frequently tend to be pickier when deciding on distribution shops to market their shopping merchandise.

Type #4: Unsought Goods and Services Services or goods, such as insurance, that can be found in the marketplace though are often ignored by customers are referred to as unsought goods or services. These kinds of goods and services are designed to sell to customers through the use of advertising with promotions like a purchase bonus such as discount rates offered only to Internet buyers. These marketing tactics often cause buyers to purchase impulsively.

Type #5: Impulse Goods Impulse goods are items a buyer looks for because something unexpected occurs; such a wife getting pregnant, as well as well-aimed advertising at those who tend to purchase products without any prior planning. Usually the decision to buy these good is based on convenience or pleasure.

Type #6: Specialized Goods These are items tend to have a high price compared to shopping and convenience goods. The length of time a specialized good can be used might take as long as shopping goods, however people are a lot more picky when it comes to specialized goods.
The truth is, most of the time customers know ahead of time which item they have a preference for and will not shop in order to compare, however they will look to find out which retailers sells that specific product at the lowest price.
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Cliff Woods is the owner of Rapid Liquidations.
We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.

More Basic Liquidation Terms to Know

More Basic Liquidation Terms to Know

By Clifford Woods

Below are some more terms that are commonly used in the liquidation business that you will surely come across.

Manufacturing Cost
This term stands for the overall costs of all the resources used in the creation of a product. The production cost is usually split into about three groups: manufacturing overhead, materials cost, and labor cost.

This is basically the cost to a manufacturing company of making a product consisting of direct materials, direct labor, and factory overhead; also called manufacturing expense.


Manufacturer's Suggested Retail Price: MSRP
The price that a product is to be sold for in the retail stores as suggested by the manufacturer that creates the product. MSRP doesn't always match what the store sells the item for or the price that buyers would like to pay for the item. Stores might need to set their price ranges lower than the MSRP in order to move stock, particularly for products with minimal demand or in a slow economy.

Retail
Retail is the word used to describe the sale of anything. It is the selling of products and services from people or organizations to the buyer. Retailers are a section of an integrated system referred to as the supply chain.

A merchant buys products in huge amounts from producers and manufacturers directly or from a wholesaler, after which they sell smaller amounts to the customer to make a profit. Basically the sale of something in general. Retail is the sale of goods and services from individuals or businesses to the end-user.

Bulk Purchasing
This particular term refers to the purchasing of a large amount of units. If more units are purchased, then the price per unit can be lowered to a negotiated price. Wholesale is essentially the selling of goods in large amounts at a reduced unit price to retail vendors.

The wholesaler typically sells at a slightly cheaper sales price per unit if the retailer agrees to buy a large amount of units so that the wholesaler can make some profit.
In a nut shell; the purchase of much larger quantities than the usual, for a unit price that is lower than the usual.

Creditor
A creditor is any person or firm that provides credit by lending another company or person borrowed money so long as it is repaid by a set date in the future. Creditors are typically labeled as either real or personal. 

Real lenders have authorized legal agreements with the debtor allowing the lender to take any of the debtor's possessions if they do not repay the loan. 
Personal creditors are simply your family or friends that lend you money.

Wholesale List
A wholesale list is an accumulation of data providing information for numerous wholesale businesses. Anybody can use a wholesale list instead of creating one from scratch.  This can save a lot of time as the producer of a wholesale list have already done this. A person planning to purchase computers from suppliers do not need to waste time and energy trying to find such companies since there already exists a wholesale list on that type of product already.

Estate Liquidation
An estate liquidation is just like an estate sale in that the primary purpose is to liquidate the property with an estate sale firm. In a liquidation, the items too valuable to be safely kept in the home are sold. The majority of liquidators that carry out the estate liquidation will charge a percentage of the total net profit for their services.
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Clifford Woods is the owner of Rapid-Liquidations.
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.

Some Basic Liquidation Terms to Know

Some Basic Liquidation Terms to Know 

By Clifford Woods

If you plan on starting your own liquidation business, you will come across many different terms that you may not have before. For this reason, described below are some of the most common terms used in the liquidation business.

Liquidation
Whenever a business or company goes bankrupt, its resources and goods are sold and the earnings pay the creditors. Any kind of leftovers are dispersed to investors. Creditors liquidate stocks in an attempt to obtain all of the money that are due to them. They usually have first claim to all the resources and items to be sold. Once creditors have been paid, the shareholders receive anything that is left. Preferred investors have priority over common investors. 

A liquidated product is one that is sold due to a new product line or excessive stock. These goods can be purchased for a lower cost and sold at your own price. Basically liquidation is getting rid of stock at below retail, wholesale or even manufacturing costs; for whatever reason.

Liquidator
A liquidator is a person or business that liquidates resources and products. More particularly, a liquidator is the term for an expert that is specifically designated to liquidate the assets of a business. The liquidator is allowed to act as the owner of the business for various functions and decisions.

Liquidators tend to be employed whenever a company goes broke. Among the primary tasks of most liquidators is to provide and defend against legal cases. Many other jobs include gathering unpaid receivables, settling financial debts, and carrying out all other termination processes. Also, a liquidator is anyone that sell stock at below retail, wholesale or even manufacturing costs; for whatever reason.

Manufacturing
When a manufacturer creates consumer goods for use or sale through the use of manual labor or machines. The term specifically refers to making something into a finished product using raw materials, especially on a large industrial scale.

Wholesaling
This term is used to describe a sale to people apart from normal in-store shoppers. Wholesaling typically involves the selling of goods to stores, bulk suppliers, and vendors as well as to commercial and industrial organizations. 

A wholesaler may work as a middleman, managing deals among various companies and industrial organizations. Wholesaling frequently takes place whenever a lot of products have to be re manufactured, organized, then repackaged and sent out in smaller sized groups.

Consumer Goods
These are merchandise that are bought for usage by the regular consumer. They are also known as "final goods" and what a customer might find on the store shelf. Foods, vehicles, home furnishings, clothing, and any other product you might find at a retail store are all considered consumer goods. 

Materials like copper are generally not referred to as consumer goods since they have to be changed into something else to become usable merchandise at a consumer level. These are basically goods that are bought by consumers and are not used to produce other goods.

Closeout
A closeout, typically known as a clearance, is the last selling of a product or merchandise to zero out a supply of goods. It might be a type of item which is not selling properly, is an old product line, or it may be a final sale due to the closure of a store as a result of bankruptcy or a move.

If the reason is due to a bankruptcy, then it is also called a liquidation sale. Essentially a sale of goods at low prices because a store wants to get rid of them.
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Clifford Woods is the owner of Rapid-Liquidations.
If you are interested, we also have a complete,
easy-to-follow manual on how to get started in this business yourself.