Putting a real value on your product can be a little challenging due to the multi-variable nature of issue inventory and the various elements that inventory liquidators employ to estimate the value of an inventory.
Regardless of whether or not you acquire a professional assessment first, the value of your stock can never exceed what buyers are prepared to pay. If buyers aren't willing to pay an assessment firm's estimated price, then that firm's estimate isn't the true valuation. You may not always be in a position to conduct a formal appraisal, but having such a reference point is invaluable. A proper appraisal is something you can decide on after giving it some thought.
Here are just a few tips that could save you months, thousands of dollars, and countless hassles while liquidating your inventory.
1. You may increase your profit margins and bargain from a position of strength if you know what factors are most important in target liquidation and how your inventory is being evaluated. Knowing this will not only make you more at ease throughout the process but will also instill a sense of assurance in you that will lead to a better outcome.
2. There are numerous aspects to consider while determining the worth of a stockpile. You can expect a significantly larger return if you know how to account for these 10 factors when calculating the resale value of your inventory during a liquidation appraisal.
3. Inevitably, the product's worth will differ from one business to the next due to factors like customer demographics and proximity to a certain market. The value of a warehouse full of snowmobiles in Denver is going to be significantly higher than the same warehouse full of snowmobiles in Miami.
4. It all comes down to who you're selling to in the end, so if one buyer runs a retail chain and another runs a wholesale business, you may expect vast price differences. It's important to have a product that is well-suited to the market to maximize profits.
5. Will your target market want to buy this product? Will it appeal to their target market? It's possible that this would drastically alter how someone values something. Furthermore, certain customers would place a higher value on a product than others.
6. An inventory liquidator is likely to profit from investing in a product category like paper towels. Some shoppers may be wary about investing in luxury items like eyeliner and face cream because of their high prices.
7. The value of your goods will increase if they have just been removed from a store display case rather than if they have been sitting in a damp warehouse for three years.
8. Quantity in depth - It's one thing to have a selection of name-brand, factory-fresh blue jeans. If you have 10,000 pairs of shoes, but they're all the same size and style, you're sitting on less of a gold mine than if you had a more diverse selection of colors and sizes in stock.
9. Appliances that are located close to the buyer will command a higher price and be in more demand than those manufactured in another country due to the reduced time and effort required to transport them to the store.
10. Grills are more in demand in the summer than they are in the winter because of the weather. Just as a Christmas tree would.
Constraints The value will drop if there are numerous and severe brand or channel control difficulties, as this will need more time and effort to resolve. Could they avoid having to remove tags if they didn't have to? Must it be sold in areas where it is not readily available? Is it possible to sell it without holding a special event?
How long ago did this stock expire? Are we talking about items from the previous season or items that have been sitting on the shelves for the past three years? The product's age has a significant impact on its marketability, profitability, and resale value.
This is by no means an all-inclusive list, but it will help you save a tonne of time, effort, and money and give you the assurance you need to maximize the value of your inventory liquidation. I promise you a better rate of return if you stick to these suggestions. Keep in mind that the inventory liquidator is only purchasing your goods because he expects to make a profit by selling them at a steep discount to another market. All that is required is targeting the correct audience.
Try Liquidators For Sourcing Wholesale Products - Make Money Selling Liquidated Wholesale Products
If you're looking to stock up on a certain item at a discount, have you ever considered purchasing from liquidators? Maybe today is the day you should start thinking about the opportunities it presents for your online store if you have never done so before. The reason a merchant, distributor, or manufacturer would sell a product at a liquidation price is that they have an abundance of the wholesale item and want to convert it to profit as quickly as possible. Many liquidators who deal in a wide variety of products can be found in wholesale directories like Salehoo and worldwide brands, so it shouldn't be hard to locate one that suits your store's specific needs.
Making a profit from liquidated items is the same as making money from any other source of wholesale merchandise. The key is to ask the right questions of the liquidators before making any purchases from them. Inquiries like, "Are these closeouts, surplus, shelf pullouts, or something else entirely?" The success of your sales efforts and the potential profits you can realize depend on the specific types of products you offer.
There are two things to keep in mind while making purchases from liquidators
Determine the resale worth of the merchandise, taking into account the merchandise's kind (closeouts, surplus, etc.). Once you have this information, you may compare the liquidator's offer to the price you can get for the items on the open market. Proceed with caution, as the usefulness and marketability of an item are included in its resale value. The price of an item is heavily influenced by these.
The cost of everything must be determined, therefore move on to that step now. This includes not simply the base cost the liquidator offered you but also all shipping, marketing, and logistics. If, after taking all of this into account, the wholesale price of the product is still far lower than its retail price, then you have a winner.
Although it is not suggested to solely use liquidation as your only sourcing technique it is a good source of unique products that can provide excitement to your niche.
