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.

Advice to Consider When Starting Your Own Liquidation Business

Advice to Consider When Starting Your Own Liquidation Business

By Clifford Woods

Regardless of whether you are just considering, or you have made the decision that you want to begin running a wholesale company, there are numerous items that you need to invest a lot of time planning and investigating before you go ahead and purchase products for resale.

Good planning and research cannot just help you save a lot of problems at first, but may also mean the difference between an effective wholesale company compared to a financial disaster about to happen in the future.

Below is some advice that may help direct you along the way as you start planning for your company.

Figure Out Your Reasons for Starting a Wholesale Business
Wholesaling is a challenging industry and may call for a lot of up-front investments, storage space, logistics preparation, and good customer service. As the primary link between manufacturer and stores, you might find yourself working with tens of thousands of products having to be transported across the nation at any time.

Keep an Eye on Your Competitors
It would not be a good idea to get into a market where there already exists well-known, reputable wholesalers for a certain product. Merchants would like to know that there is a reliable source of products that satisfies their conditions and will not make changes to their wholesalers for just any product. Simply because you constructed the warehouse does not necessarily mean they are going to come.

Make use of your local Chamber of Commerce, the web, and even consult with retailers to discover exactly what wholesalers can be found in your town. If you would like focus on a particular product, get in touch with the manufacturer directly to find out who manages wholesaling for them in your area. There might not be one near where you live, or there might be more than one across the road.

Figure Out and Plan Your Finances
Wholesaling can call for a large amount of investment and expenses before you actually see a dollar of earnings. Make sure to look beyond the startup expenses too. Workers, taxes, insurance, and rentals are only some of the expenses you will have to consider as continuous costs.

Create a Good Business Plan
A reliable business plan is definitely the first step toward any successful business. You have to ensure that you have clearly planned out what you plan to do and how you would like to accomplish it. Not only will banking institutions require this for funding, but usually other companies you work with may wish to view it too. It needs to be the principles that you stick to every single day in your business to obtain the goals you have established.

While creating your business plan, it is usually a good idea to employ a professional consultant to help. An excellent source that will help you find such professionals in your town with the required skills and record is the Small Business Administration (SBA) government website.

Do All Necessary Paperwork
As a wholesaler you will find that you must pay taxes along with other fees to your state as well as the government. One exception is that you are going to be provided tax-exempt rank for the merchandise you are relocating between the manufacturer and additional merchants. This is often a tricky practice and is dealt with by the state.

Once again, it would be best to make use of your state taxing expert in addition to the local Chambers of Commerce. Just one wrong mistake when it comes to important paperwork can bring about a ton of charges and fees that you wouldn't have to deal with otherwise.
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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 Difference Between Wholesalers and Retailers

By Cliff Woods 

If you want to start your own liquidation business, you will have an advantage if you understand the jobs of all parties involved in the sale of a product. This is especially important since you will sometimes be dealing with wholesalers and retailers when you want to purchase their outdated products or merchandise on sale. 

Wholesalers and retailers are two essential middlemen when it comes to selling products.

Both wholesalers and retailers:

1. Work as an intermediary connection between the producers and the shoppers of products.
2. Focus on offering a broad variety of products and services for the buyers.
3. Minimize how much effort is necessary by the producer in distributing their product to consumers.
4. Significantly raise the effectiveness of trade which results in the decrease in total price of distribution of goods.
5. Supply the delivery of products to the customers at locations handy and available to them.
6. Offer after-sale solutions and handle customer complaints.
7. Provide advice about the goods to the buyers and relays the buyer feedback to the manufacturers as well.

Wholesaling is a small part of the total supply chain, which includes numerous providers such as vendors (the term vendors originally represented property vendors. However, today it means a supplier of any good or service), producers, and retailers. Retailers buy products from wholesalers, after which they sell the items at a higher price to cover expenses and generate income; to the end-user. 

What is a Wholesaler? A wholesaler is the middleman that works between the manufacturers and retailers. Wholesaler is the term for any person or company marketing goods in large amounts to customers besides the regular consumers; end-users. Therefore the producers who sell their products straight to retailers can also be considered to be wholesalers. The specific expertise and ability of wholesalers improves the performance of the products being sold. The wholesalers offer essential services and solve the issues of both the producers and the retailers. 

Several of the jobs of a wholesaler may include:

1. Execute marketing and sales campaign activities as well as hire professional sales associates for this exact purpose.
2. Set up orders for the item ahead of time based on the consumer's demand for the item. This makes it possible for the manufacturer to find out the exact quantity to produce so that no materials are wasted in the production process.
3. Keep the producers up-to-date on the alterations in consumers' practices, preferences, and trends.
4. Package various levels of products based on the quality and organize the goods into small groups for the retailers.
5. Work as the retailer's purchasing agent and helps to save them from the hassle of finding and building goods from various producers.

What is a Retailer?
Retailing is the term for all of the dealings which involve sale of products or services to the regular consumer. A retailer is a middleman that buys products from the wholesalers and then sells it to the shoppers; end-users. They are an important link in how products are sold since without them the consumers would have a much harder time locating goods and merchandise would not be able to be sold in far away locations. There is a stronger personal connection with the buyers when they deal with a retailer since they can focus on the different preferences and tastes of their target market. 

 Retailers are the final link in the "chain of distribution" and provide the final price tag of the product to the consumer. The retailers offer essential services and resolve the complications of the producers and wholesalers while at the same time managing the problems of the consumers. 

A few of the jobs of a retailer may include:

• Carry out storage function by maintaining goods.
• Provide outlets to wholesalers and producers.
• Organize products provided by the wholesalers and store them in hassle-free packages for the satisfaction of consumers.
• Keep customers educated about the shifting trends on the market like the various types of models in a specific product line.
• Predict the wants of consumers and appropriately put together products of different kinds.

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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.

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.