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Liquidation Surplus Buying Guide
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Liquidation, Closeout, Surplus Resources
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What is Liquidation?
Liquidation is the process when a company is converting assets into cash. The term liquidation though is used for a wide variety of meanings. Some of the reasons a company may want to liquidate their assets many be:- bankrupcy
- going out of business
- end of season, new season approaches and they need to clear out the warehouse to make room for the new seasons stock
- overstock, bought too many
- new product models have been released and the old ones need to be cleared out
- company has discontinued working with that vendor and no longer offers their products
Secret - waste can be donated to charity for a tax deduction.
Secret - save these waste items as you may get another in the next load that you can use to make a salvageable piece.
Find easy to sell merchandise in bulk at Liquidation.com. Click Here!
Surplus or Overstock
Surplus merchandise is left over or excess merchandise that needs to be liquidated. A store may have purchased too many because they thought there would be a greater demand for the product or the vendor may have required them to purchase a certain number for a greater discount. Sometimes when a store orders items the shipping is delayed and they don't get the merchandise in ontime to sell it before the season ends. The surplus merchandise may be of a previous season. Some liquidators have manifests which are inventory list of individual items in a lot. A manifest may contain a short description of the items and retail price, cost, wholesale price or percentage of retail. Surplus may have been out on the shelves and boxes or packages may have some wear.Closeouts
Closeout usually refers to something that has been marked down and is not moving fast enough. This may be because the season is ending and they need to make room for next seasons stuff. For example swimsuits do not sell well in Fall so stores marking down swimsuits in July, by August they are are on clearance and before September are removed from the selling floor to make room for fall fashions.Salvage or Damaged
Salvage is a term to be extremely cautious of and means to rescue or the act of saving. This usually means that the merchandise is damaged or in very poor condition. Stay away from these unless you are a very experienced buyer and you are willing to take a big risk. I have taken that risk a few times and lost. Buyers beware!Returns
Many companies accept returns from their customers and some have a policy of selling those to a liquidator. Return processing is more costly than just selling it to a liquidator. Catalog companies may get a return because it is damaged, does not work, didn't fit, is not the right color, customer changed their mind, sometimes the package may not even be opened. I have seen clean returns and also had bad merchandise that I could not sell. You really need to check out a companies merchandise before you buy a huge order of returns.Discontinued
These are items that are usually not in high demand and therefore not selling. Some discontinued merchandise could be a result of a newer product, different color, season change.The thing to watch out with discontinued is how old is it. I bought a pallet of discontinued makeup that had expired and the chemicals were seperating, no way I could resell that garbage.Seconds or Irregular
Irregular merchandise is a product that did not pass quality control. Sometimes seconds are small flaws and other times they are big noticable blemishes. Apparel may be missing stitches, be torn, sewn incorrectly, one leg or arm may be shorter than the other. In shoes there may be excess glue or scuffs from machines. There are a variety of reasons that items are not first quality.Defacing
Many liquidators require that you remove the store name from the merchandise. Defacing tags prevents returns to the store. Liquidators also require that you do not use the store names when you advertise or promote the merchandise. If you get caught you will not be able to buy any more goods from them and they may take legal action.|
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