Buying and selling clearance or surplus merchandise can be one of the most profitable businesses you could be in, offline or online. Closeout merchandise is generally defined as unwanted, surplus, or surplus merchandise that must be removed from the owner’s warehouse to make room for new incoming inventory.
In the sense that the owner of the liquidation merchandise wants to get rid of it, you can exponentially increase your profits by negotiating a very low price, as low as 90% less than wholesale in many cases. The seller will be happy to pocket some cash and clear out his warehouse… now he will be in a position to multiply his profits as a new owner or seller of the merchandise.
Much of the merchandise you’ll find will be suitable for sale at discount stores, dollar stores, and the like.
These buyers can be individual or small chain operators, as well as national chains. We have sold to all types.
One thing they all have in common is that there is a constant stream of offers from surplus dealers and brokers.
As a result, they have the luxury of choosing what they buy and who they deal with. Many buyers will simply ignore product introductions from sellers they feel uncomfortable with for whatever reason.
So a good relationship with a buyer can mean thousands of dollars in profit and ongoing deals. This is where you begin to position yourself to multiply those gains…for years to come. A good relationship with the buyer should be considered as valuable as a residual check or a pension. He can and will pay you for years…all you have to do is establish a relationship based on cordial, honest and trustworthy business dealings and ethics.
It is critical to your success and your wallet that you treat your buyers with respect and in a professional manner so that they view you as an asset, a source of new product opportunities that will benefit your business and make them look good.
Here are some tips for developing and keeping a buyer:
1) Find out what types of merchandise they are currently willing to buy. If it’s January, the dollar store chain may not want to buy pool toys. They may ask you to check with them in a month about that. But those surplus Christmas toy bears you found may be right up their alley.
2) Make sure the product is ready for retail sale. Shoppers will love it if the merchandise you sell to them is shelf-ready, boxed, or wrapped in plastic.
3) Send samples overnight. Sure, it costs a few bucks more, but by being on time with your product introductions, the buyer will know you’re a serious seller.
4) Make sure the product is not faulty. If it’s an electric shaver, make sure it works. It comes with batteries, make sure they are not DOA.
5) If any changes are needed to make the product ready for sale (for example, changing the batteries), please do it yourself whenever possible. The easiest way to do this is to make it part of the deal when you buy the inventory for resale. For example, say, “We’ll buy the razors if you give us new batteries for them.”
6) Never misrepresent a product. Be sincere. If a sale is made, all parties will be duly informed and the buyer will respect you for looking out for their interests and informing them of potential issues.
By treating a buyer like GOLD, you will improve your reputation, multiply your profits, and make more money on a regular basis than merchants looking for easy money.