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Learn How You Can Profit from Closeouts.
What is Closeouts Inventory?
What is the Source of Closeouts Inventory?
Why go into the Closeouts Business?
Merchandise Variety and Selection.
Market Stability.
Is The Closeouts Business For Everyone?
Is there a Risk?
Where to Buy Your Closeouts Inventory.
Your Best Source for Closeouts Inventory.
What is Closeouts Inventory?
There is a little known market where people, just like yourself are earning a good living by selling a variety of products through ebay and other auctions, retail, wholesale, import/export, internet and many other channels. The selling of closeout, overstock and liquidation products is rapidly becoming an established venue for shoppers offering every kind of product from clothing and cosmetics to electronics, furniture, home improvement merchandise and sporting goods. The list of products is endless and includes customer returns and the same name brand, designer labels and first-quality merchandise found in many well known department stores, retail chains, home improvement stores, etc. What differentiates these products is that they are offered at a substantial savings, some items can be purchased for as low as 5% of the original wholesale cost.
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What is the Source of Closeouts Inventory?
Closeout, liquidation and overstock inventory comes from many sources including department stores, manufacturers, home improvement stores, catalogue sellers, discount retailers and a variety of specialty retailers. Much of this inventory exists as a result of retailers and manufacturers having excess inventory, discontinued products, an excess of seasonal items, packaging changes or slightly imperfect inventory known as “seconds”; as well as customer returns. Businesses that close or go out of business and must liquidate their products are also a source for this market.
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Why go into the Closeouts Business?
With closeouts available for as little as 5% of original wholesale cost, the potential for profit is enormous. Regardless of how you sell: whether wholesale, export or retail, through auction or any other means, the potential for profit is worth investigating. Whether you are experienced in closeouts or are starting to investigate this, you owe it to yourself to read on.
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Merchandise Variety and Selection.
Closeout inventory comes from many sources. The closeouts customer is often shipped an assortment of name brand products allowing them to offer their customers a unique shopping experience. The customer never knows what “treasures” they may find and at what bargain price.
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Market Stability.
Closeout inventory will always exist because consumer product markets are ever-changing and manufacturers and retailers will always need to manage their inventory to remain profitable. There will always be a market for these products. Everyone loves a bargain and wants to get the best value for their dollar. The mass appeal of large discount retail chains such as Target and Walmart are proof of this.
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Is The Closeouts Business For Everyone?
No. This is not a “get rich quick scheme”. If you only want to deal with 100% retail ready items, closeouts and overstock are not for you. Buying closeouts inventory requires much more work than purchasing brand new items. For example, even when buying overstock clothing from a high end department store, the merchandise will arrive wrinkled. The purchaser, if reselling the merchandise in the retail market, will need to steam the piece in order to make it presentable in the retail trade.
Based on industry averages, 65% to 75% of a closeout purchase is ready to sell with little or no additional attention required. Approximately 20% is repairable with the remainder being scraps, spare parts or non-salvageable merchandise.
Please note that these percentages are only averages. They are not exact for any particular type of merchandise. They will vary with each specific load based on availability at a given time.
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Is there a Risk?
When looking at any single purchase – YES – there is a definite risk in purchasing such types of items – all items are sold AS IS regardless of anyone’s best intentions to advertise each load as accurately as possible. All persons contemplating purchasing such items must be aware and prepared for the risk.
Over the long term however, looking at several purchases, most people in the industry will agree that the payoffs and money returns are generally very good and the long-term risk is generally minimal.
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Where to Buy Your Closeouts Inventory.
Many closeouts dealers maintain warehouses, warehouse staff, as well as commissioned sales people. More often than not, they will pay a transportation company to have the goods shipped to their warehouses. Think about this for a moment – who do you suppose will end up paying for these expenses? You’re right – these expenses are passed on to their customers. In order for that dealer to stay in business, he has to at the very least, cover all of his overhead expenses, not to mention his profit. Most dealers mark-up their product with very high margins on top of all of their added expenses and with very little regard for whether a customer returns a second time or not. In addition, the commissioned salesperson’s earnings are based on the total sales price. The higher the sales price and profit, the higher the sales commission will be. This being the case, there is no incentive for the salesperson to offer a low sales price. On the contrary, they will make every effort to get as high a sales price as the buyer is willing to pay.
Many dealers will cherry-pick their incoming shipments and sort out the very best inventory which they will later sell at a premium or even sell through their own retail outlets. After making the very best selection from a given shipment, will they ship the remains to their closeouts customers.
You should make every effort to buy from a dealer that doesn’t have many of the fixed expenses such as warehouse, warehouse staff and commissioned sales staff. Additionally, whenever possible, you want to buy from someone that will ship the product directly to you from their supplier – whether that be the department or home improvement stores, manufacturers or catalogue suppliers.
Finally, you want to deal with someone with whom you feel comfortable; someone that is accessible, deals with you honestly and professionally and strives to earn your continued business.
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Your Best Source for Closeouts Inventory.
BlueRibbon Closeouts sells thousands of products from the world’s top designers and brands for less. We do not maintain inventory, a warehouse or the staff to man a warehouse. We strive to maintain our costs at an absolute minimum so that we can pass these savings on to our customers.
We ship all merchandise directly to our customers from our suppliers so that they are assured to receive only the best selection of product. Our customers are assured that no one has cherry-picked through their merchandise before they receive it and that they are getting the best product selection at the best price.
Make more money, call us today at 1 (866) 462-BLUE (2583).
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Our Commitment to You
We want your total experience with BlueRibbon to be a pleasant one.
We value you, our customer and will strive to earn your continued business through fairness, honesty, and professional service.
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