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 Basics of a Liquidation Business

The Basics of a Liquidation Business - Consumer Goods and Wholesalers

By Cliff Woods

The main purpose of doing any business, no matter if it's big or small, would be to earn money by selling for a price greater than the original purchase price, in addition to making up for any related expenses.

Among the list of profitable businesses is the investing in and selling of liquidated products. Having said that, to make money in this business, you need to be alert and be able to identify liquidation products that can be found at costs BELOW manufacturing costs in most cases! 

The success of liquidating stock as one approach to a business is not just determined by the type of liquidation goods you purchase, but also on your ability to take advantage of the demand that the liquidated products were not able to attract while on sale by the initial stock owner. There is a simple way to do this.

Additionally, it is crucial that you consider that not all liquidated inventory is the same. There are different qualities of liquidated stock, from completely new to broken beyond restoration. Be wise enough to avoid purchasing faulty or poor-quality products that could be hard to sell.

What are Liquidation Goods?
These types of goods mainly come from wholesale items that a store or business offers when it is closing down and needs to liquidate its stock or from manufacturing companies. Liquidation products might also be available from a person or company that has gone bankrupt. Or there may be excess stock, overstock, and end-of-line stock which can be sold as liquidation goods. 

You will find that there are businesses that actively look for liquidated products direct from merchants, bankruptcy intermediaries, auctioneers, and salvage companies. Their primary appeal is that liquidated stocks can be purchased by the truckload or container load and then sold in smaller lots at a profit. There might be a variety of intermediaries active in the liquidation process, though the exact amount is based on the volume of the liquidation stock.

The main parties involved in the liquidation of a business are generally wholesalers, however online sellers, retail shops, and market traders can play a role as well.

Liquidation Wholesalers
If you are going to get started in the business of investing in and selling liquidation products, one good move would be to browse the Internet for web pages that provide details about dependable and well-known liquidation bulk suppliers. Many of the reputable websites have a collection of a large number of reputable suppliers.

This database is consistently updated with prescreened, grouped suppliers so that it is simple to find the best supplier for you to purchase from. The number of products provided by these wholesalers consists of practically everything that is sold in stores, like jewelry, holiday merchandise, tools, bathroom supplies, pet items, hardware, home furnishings, and fashion accessories.

On the other hand, the wholesale stock is different every single day, so if one item can be found today, it may not be on the market the following day. For that reason, it is important to continue to keep going through the inventory list on websites as well as look for special bargains and new product lines. Liquidation wholesalers will usually not require you to purchase a complete pallet filled with a single product, therefore it is possible to buy small quantities of numerous products to sell.

Furthermore, unmatched bargains may also be found since the wholesaler will usually have purchased stocks at low costs and is looking to get rid of their stock as quickly as possible. Wholesalers are able to provide products to people who would like to purchase goods for reselling and can help businesses that need to sell their excess products quickly.
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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.