Thinking of going independent and being your own boss? Making your way as a small business owner isn’t always easy. However, it can be rewarding— both financially and personally.
If you’re considering starting a business, you might want to look at the wholesale liquidation industry.
What Is A Wholesale Liquidation Business?
In the business world, the term liquidation refers to the process of closing a business and using its assets to pay off debts.
Every year, thousands of retail organizations and corporations go out of business, resulting in billions of dollars worth of inventory and stock becoming available at bargain prices. These goods are often sold to resellers or liquidation businesses, who then sell or auction these goods to the public at a higher price for profit.
4 Tips To Wholesale Liquidation Business Success
Starting a wholesale liquidation business can be very lucrative and profitable if you move in the right direction. This kind of business stays profitable regardless of economic conditions.
If you’re planning to start your wholesale liquidation business, here’s how to ensure your success:
- Find Liquidation Wholesalers
First off, you want to look at reputable liquidation brokers. A simple Google search will give you dozens of websites promising daily auctions of liquidation merchandise at good discounts. Liquidation brokers often work with government agencies, retailers, and manufacturers.
You’ll also find liquidation auction websites. For instance, one of the best auctioning and liquidation broker in the UK, William George, help businesses generate quick cash when closing or just getting rid of redundant or end-of-line stock sales. If you want to know more about this broker, they have a new website. From wgandco.com, they moved to williamgeorge.com.
When choosing your supplier, make sure that it is reputable. Get the contact info and try reaching them. If you don’t get a response, then you can try checking other websites for reviews about the merchants you’re considering. From here, you can see honest reviews about their service and determine if they can be a reliable partner. Make sure to check for references and see how they do business with others.
In addition, don’t limit your search to a single vendor or website. You can look for similar products sold by other vendors, either physically in your area or online.
- Consider The Products and Costs
Liquidation brokers offer a variety of goods, while others specialize in a specific niche. With that said you need to decide on the types of goods you’re planning to buy.
These goods vary from antique and collectible items, home furniture and decorative items, arts and jewelry, and even commercial or classic vehicles.
You also want to determine how much you plan to buy. Depending on your supplier, you can buy as little as a single lot or case of a product or buy entire pallets of merchandise. Also, you want to inspect the items you want to buy to determine their quality. Make sure that the items have decent quality, corresponding to the price you’re planning to charge.
Total cost should be considered, too. Don’t just look at the cost of the stocks or merchandise itself, but you should also ask for any hidden costs such as shipping and other fees. These extra expenses will significantly impact your profit margin.
Lastly, you want to think of where you’ll store the merchandise. If you only purchased a small batch of the merchandise, then you can store them in an empty shed or garage. Otherwise, you may need to rent a warehouse or a storage room. These costs will increase the total expenses and will, again impact your profit.
- Determine A Competitive Price
Once you have the merchandise, you need to come up with a competitive price. Determine the total cost of your product and plan your profit.
It’s also important to note that some consumables may require an extra amount of care when handling, which means additional fees. Make sure to include those costs in your final price as well.
You’ll need to make sure that the price of the merchandise is in line with the quality, type, and quantity of what you’re selling. This allows you to deliver and sell your good quickly.
- Set Up Shop
Once you have everything ready, you need to set up shop. If you’re opening a physical store, you can start looking for a storefront. It’s best to store your inventory at the location to minimize transportation and storage costs.
However, most people today shop online. So, setting up an online store can help you reach a wider audience and is even more convenient to run than a physical store. You can easily create and set up an online store with the best eCommerce platform.
The key to operating a thriving business in any niche market is to keep costs low, gain profits, and stay afloat. This is the core principle at play with a liquidation business, allowing you to buy stocks for a lower price and sell them higher for profit.
So, if you’re considering entering this sort of business, follow the above tips to help set you up in running a successful liquidation business.