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Many people buy overstocked or closeout merchandise for resale. You can earn large profits if you buy carefully. Basically, you want to buy only desirable merchandise. Some times merchandise shows up with closeout dealers because it wouldn't sell in a store. These items should be avoided. Look for merchandise that didn't sell for economic reasons -- not because the merchandise was poor. Some examples:
- Seasonal goods
- Store closing or bankruptcy
- Obsolete goods replaced by newer products
- Customer returns after the holidays (not warranty or defect returns)
One of the best places to find great deals on merchandise is through what are called "closeout" dealers. Another name for these outfits is Liquidators.
Most wholesale merchandise comes brand new from wholesalers. However, closeout merchants may deal both in brand new merchandise such as those pieces gotten from overstocks. Additionally, vendors of closeout merchandise sometimes deal in returns and used goods.
There are two basic drawbacks in buying closeout merchandise. The drawbacks of buying closeout merchandise include limited stock and the possibility of receiving low quality merchandise.
First, when you buy closeout items, many times there is limited availability of a particular type or line of merchandise. You usually cannot make a stable inventory out of buying closeout merchandise since the product availability fluctuates.
Most importantly, a buyer of closeout wares needs to be on guard about the possibility of buying merchandise that is irregular, damaged or somehow has low resale value. This can occur especially, but not necessarily, with goods that have been returned.
You can circumvent these problems by dealing only with reputable closeout dealers. How to find them will be discussed in the next section.
Lastly, if possible, it may be worth your time to drive to inspect the merchandise; and thus geographical locale may be an important deciding factor when you are looking to buy closeout merchandise.
This is a great way to promote your business and stand out of the crowd. Are you committed to an integrity? Join us at www.integrityChamber.com we can help.