Liquidating a small retail business
Begin by having a big sale and heavily discounting the products.Once you announce to your customers and employees that you’re closing the business, you can hold a going out of business sale and discount the products even more.
Like salvaged products, there is a chance for damaged goods.Running a business is hard enough, and keeping costs low is key to turning profits and staying afloat.One great way to launch a new business is to buy liquidation goods at bargain basement prices that you can resell for a profit.Thankfully, there are lots of opportunities to find other businesses who are looking to cash out and unload inventory at pennies on the dollar. First, check out the Internet for websites that will lead you to reputable liquidation wholesalers.A simple Internet search will yield dozens of websites that promise daily auctions of liquidation merchandise at deep discounts, but the most important thing in choosing your supplier is to make sure it’s reputable.For example, you may buy 100 total units versus four 6-packs of a specific item.
The bulk buy you make is almost always assorted with a variety of items.
They are essentially divided into two categories – salvage items and job-outs. Salvage merchandise consists of customer returns, floor damages and samples. The second category of closeout merchandise is job-outs.
Due to this mixed assortment, some items may be damaged – however damageable does not always mean unsellable. This category identifies items that were already on a retail floor somewhere and did not sell.
There is often confusion on how liquidation and wholesale differ (or if they do at all).
In fact, there is a huge difference between the two. Liquidation typically means an organization is trying to turn excess, overstock, or obsolete assets into cash, quickly.
First thing is first – let’s discuss just exactly what closeout merchandise is and liquidation sales.