By Gerry Hunt
Finding the right deals is half the battle in business, and retailers work with a number of suppliers trying to find the best prices. In addition to dealing with traditional wholesalers, many merchants are finding that they can often get great deals from liquidators.
It’s all about the buy
By targeting companies that provide reverse logistics sourcing, liquidators are able to save retailers hundreds of thousands of dollars annually. Having a loyal customer base also helps. You want your customers to discover that buying clearance product from you is actually cheaper than going to the manufacturer and buying factory direct. Massive clearance occurs on the retail distribution level, and provides over a billion dollars a year in product. You must be able to channel that merchandise to the right retailers, at the right time.
Direct marketing to the end user
Although most liquidators do business with wholesalers, those that focus on direct marketing to the end user can save the retailer even more money. Wholesalers love clearance products because they can yield an increase in their margins, but they are not as flexible as the retailer, especially when it comes to things like packaging. The Bargain Warehouse has some of the best prices nationally for Christmas trees, lights, ornaments, bags and cards, for example, but because products are clearance, they will not come in factory case packs. The product itself, however, is usually about 92 to 95 percent Grade A, and retail ready. Sometimes you may experience slight box or carton dents or dings, but nothing that would prevent you from providing a clean shelf appearance.
Sort product by SKU
Although there are a number of companies that sell liquidation on a bulk scale, very few have the ability to sort product by the SKU. Sorting product by the SKU works best for customers that have very specific product lines and price point requests, while bulk clients may be looking for an assortment of items to fill up their shelves, and really do not have the time to hand pick every single item. As a solution, Bargain Warehouse offers product in bulk or by the SKU. For example, we have a website featuring our clearance items. If you click on Christmas in our directory, you can shop over 400 SKUs in Christmas décor alone.
Retailers must perform due diligence before making any purchases from liquidators. It is important to clarify with a seller the condition of the clearance product. There is a big difference between buying return merchandise and shelf pulls, for example. Ask the right questions, and if you are interested but still uncertain, ask to go to the facility and view the product.