Cutting Middlemen with Closeout Products
It is often very difficult to locate merchandise liquidators. This is the reason as to why you will find a lot of closeout brokers in the industry. A closeout liquidator is a person with a lot of connections with close out sellers. They also introduce their products to some wholesale sellers as a way of marketing their products. The liquidator makes money either by marking the price of the products up or even by receiving a commission from the original owner of the item. Closeout products are mainly found when a firm is liquidating or when it wants to advance to better inventories.
Like a wholesaler or as a retailer, it is crucial that you pay the lowest price possible for the goods, then there is a lot of need to eliminate all the middlemen. Middlemen in many cases add up the cost before it gets out from the original seller to the customer. If the closeout broker is working by the commission, then you will pay the same price like when you deal with the original seller directly. This will, therefore, help you not to pay more markups. At times, however, it is challenging to tell that the seller has not raised the price of the goods so as to compensate the price of the broker. This is why it is crucial for you to avoid the middlemen as much as possible. Deal with the owner of the goods directly and then go and deal with the customers directly.
The best way to know that you are dealing with the original owner of the closeout inventory and not the dealer is by asking them to show you the goods before you buy them. The actual seller of the inventory will be glad to have you visit the warehouse and have a look at the goods. They understand that there is a tremendous probability of you buying the products. An agent will in most cases try to evade, and they will not be happy to hear that you want to see the goods because they do not own the products for sale.
One advantage of having close out products is that they can be of high quality and sold at a low price. This is a win- win situation for both of the parties. This is one way that businesses use to earn money and also to untie their capital. The customers, on the other hand, win because they get huge discounts on this products and they are still of good quality. Companies get a significant amount of money from selling their excess and redundant stock as closeouts.
It is crucial for a business to unload its old products and make room for more up to date products. These products are at many times sold below the original wholesale prices. When you continue to stock excess products in the company, they end up becoming obsolete and also cost you a lot of holding cost. It is, therefore, prudent to sell them as closeout inventory.