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.

The Difference between Auction Sales and Liquidation Sales

By Clifford Woods

When businesses find themselves with the need to recuperate resources, there are several options they take into account. The most typical way to recover assets is by auction and liquidation sales.

Liquidation and auction sales are used mainly by stores wanting to get rid of excess merchandize and get as much money for them as possible.

Knowing the difference between these two kinds of sales can certainly help one make the right decision if a company is confronted with the need to sell property or equipment.

In the following paragraphs we’ll go over the differences between auction sales and liquidation sales.

What Are Auction Sales?
Auctions are known as the opposite of liquidation sales because they are very fast; from start to finish.

The advantages of auction sales include:

• Prospective buyer can drive price ranges up.
• The Internet can attract bidders from around the globe.
• Auctions often occur when an organization has excess products they want to get rid of.
• Auction sales are fast from beginning to end. An auction deal involves the setting up of the equipment, the auctioning process, and the cleanup. All of this may take no more than ninety days.

The only real problem with an auction is the fact that items may not always sell for the value predicted. Competition amongst bidders is what decides an item's value and sometimes there isn't enough competition to drive a price up to the desired amount.

About Liquidations Sales: Liquidation sale is the procedure for marketing the assets of a company in an organized manner over an extended length of time to achieve greater values that are nearer to retail price.

Liquidation sales are just like store closing sales in that a special corporation might come into a store to sell the rest of the extra inventory. They are usually lengthier sale processes, in which products are sold throughout weeks, months, and even several years.

Industrial liquidation sales usually involve the retailers reviewing offers and discussing selling prices.

The primary benefits of organized liquidations include the following:

1. Extended selling time. This allows sellers to have plenty of time to find the best buyer for their products, which could often mean that they will sell for higher prices. Though in most cases they will settle for less in order to get rid of the product right away.
2. Discussion between the seller and buyer determines what an item is sold for.
3. Works more effectively for more customized or unique products. Often there are minimal buyers for such products; liquidation sales provide sellers with the time to locate buyers.
4. The main advantage is the time frame: more time to carry out the sale means that there is more time to find the perfect buyers. For this reason, if you are a buyer you should provide the companies in your area with your personal information so that they come to you whenever there is a liquidation going on.

Liquidation sales do have a downside though in that products must be stored on site until the sale. 

Liquidation sales are best for buyers since they will be able to grab merchandise for only a fraction of the cost they would get it for at an auction. After most of the items have been sold through the liquidation process, equipment and workplaces devices are often sold at an auction.

It is an effective way to sell off resources from a factory once most of the items have been bought. Both kinds of sales work effectively to help restore assets. For buyers, a liquidation sale would be the best bet when it comes to making money since an auction might drive the price way past the amount you are willing to pay.
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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.

A Brief Look at Estate Liquidations

A Brief Look at Estate Liquidations 

By Clifford Woods

An estate liquidation is a lot like an estate sale for the reason that the main point is to liquidate the property by means of a property sale company. Usually this will involve everything on the property such as belongings in safe, household heirlooms too precious to be kept in the home, property, vehicles, boats, RVs, livestock, and anything else that the estate company might cover.

Although it is essential in the majority of states that a real estate professional must be there to create the paperwork for the purchase of real property, most other merchandise do not need any other kind of permit apart from the local ones necessary to run a business in your particular state in which the liquidation is happening.

In many cases, the family will have an attorney in order to supervise the procedure for liquidation and to keep the program straight on legal issues of stocks and bonds being exchanged, assets liquidated and any real property changing hands under legal standing.

Estate liquidations take place mainly like estate sales, with all the liquidators preparing the property and items to be sold for a community sale. The majority of liquidators charge a percentage of the net income from the sale.

Estate Liquidation vs. Estate Sale
The primary distinction between estate liquidation and a sale is that the liquidation can involve collections, bonds, art, stocks, and real property. Normally estate liquidation is followed by real estate agents, lawyers, CPAs, and appraisers, while a property sale can be carried out by any person with an understanding of the value of household products and collectors’ items involved.

Property is categorized into two basic types: personal property and real property. Each may be sold or liquidated. Estate, on the whole, is often regarded as an asset, in that it can be liquidated for money. In most cases, property is liquidated in order to provide a way to obtain money to purchase other property; for other people it can be liquidated in the bankruptcy process.

Relative Liquidity
Just about all possessions, which includes land, property, jewels, metals, bonds, and stocks, may be seen as relative liquidity. Although such things are not regarded as property per se, money that can be made from it is considered the liquid asset. 

Cash is accepted currency, and you need to use it to buy everything, which makes it totally liquid. Property, like a house, isn't actually liquid; however it may be used as a currency by means of its liquidation, sale, or trade for related properties.

Why Does a Property Become Liquidated?
The reason why an estate could be liquidated or sold can vary. As an example, you could possibly liquidate a holiday residence in order to create money to cover your child's education.

Estate liquidation also often takes place due to bankruptcy. A bankruptcy professional may buy your home liquidated in order to pay off your collectors. Within the law, estate liquidation practically always describes the means of selling off a bankrupt debtor's home to meet the debtor's needs.

What Occurs When the Bank is Involved
In its simplest form, estate liquidation is a sale of the property or home. In a bankruptcy, for example, you would list all of your property to a specialist to look it over and makes a decision as to what needs to be marketed in order to pay off creditors.
Based on the debt of the estate that is bankrupted, the specialist might decide to not liquidate any parts of it. 

Whenever your estate is liquidated in bankruptcy, you get any of the profits remaining after paying back lenders.
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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.

Things You Need to Know About Closeouts

By Cliff Woods

Closeouts are one way to get cheap products for your business. Particularly, the products that don’t sell during a closeout will be extremely cheap later on down the road. These are usually liquidated. Whenever a company produces goods in vast amounts and launches them into the marketplace, they end up being replaced by a brand new product at some point. Then the replaced items are sent to wholesale closeouts and liquidators.

There are many products that are somewhat damaged and can't be marketed as new and have to be sold at a large discount rate. If they were to market these slightly damaged items at retail shops, customers would surely bring them back for a replacement despite the fact that it is still an excellent product that still functions.

Store Returns 
Usually store returns are provided to wholesale closeout companies. After an item has been returned, the item is usually not placed back on the shelf again, but is instead stored. As time passes, these products gather and there is almost no room to store them, even in big establishments. The next course of action would be to get rid of all obsolete or damaged items, which includes the outdated ones talked about above. 

When this occurs, wholesale liquidations are the only option since they do not need to focus their time making money on retail store items and instead can concentrate on selling returned merchandise.

Closeouts as Advertising 
Stores have been known to promote closeouts in an auction-like manner in order to have traffic visiting their building. As a result, some visitors will discover new things that they may be considering purchasing. When in store liquidations are available you will see large amounts of people coming into the facility since the price is cut to motivate people to purchase.

Items that have already been on the shelves for too long are also a part of the closeout to clear the shelving for brand new merchandise.

How Often Do Closeouts Occur? 
A lot of companies have closeouts on a regular basis. A primary market that hosts a lot of closeouts is large furniture vendors and those who sell cars. Big name car dealers are known to have liquidations two times per year, one that takes place in fall and the other during spring in order to make room for new models. 

Closeouts are important because models that sit for too long are usually not worth holding on to and can be swapped out for something much better. This is particularly important with these difficult economic times since consumers would rather save as much as they can and only try to buy a car during one of these bi-annual closeouts. 

This same scenario also occurs for furniture sellers. Most furniture does not sell properly during wintertime, especially when it comes to patio furniture. For this reason the furniture company aims to have it cleared just before winter takes hold. This is done through wholesale closeouts and liquidations.If an item or set does not sell during the closeout then the company has to keep it through winter or liquidate it.

Holiday Sales 
Instead of saving merchandise until the next year, nearly every retailer in the United States also has post-holiday clearance sales, occasionally starting before the holiday season. Early discount rates are often close to 20%, however the discount can reach up to 60% which is common in stores who have a high retail price to begin with. There are stores that do pack-up holiday products after a week-long closeout and try to sell it again later, however they usually have a hard time trying to sell any items once the product price returns to normal after a closeout. 
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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.

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.