Closeout Liquidators - Help with the Maze

A word of caution. My experience has been good and bad when seeking information on closeout liquidators. In business you have to lookout for yourself. Yes there are groups that can help you better determine who you should do business with. BUT, don’t get in with the wrong group (or crowd).

First, what seems to be the easiest way to locate wholesale suppliers is with a “directory”. There are dozens of them available. Of course, for a price. However, even if it is a small price it may cost you a lot. At least some of the closeout liquidator directories are not up to date. And be careful that the “directory” is not pushing you to the suppliers that sponsored or even published the directory.

Wholesale Directory

Next, the thing that got me the most was that the group or directory that I signed up for actually was getting a commission off my purchases. I became the salesman for someone else’s business (and with my money). And they hide this very well. It took me a couple of months to realize what they were doing. So when I did realize the extra costs, I was not making enough money on my hard earned sales to be worth it.

What I agree with is the group forum. Now there are forums that are almost never updated and have very little member participation, and those want help you. Find an active community type group with an active forum that can help you with advice on closeout liquidations. Not only can this save you money and heartache but you may come up with new products, new closeout liquidators, and great new ideas to help grow your business just from blogging with other business people just like you.

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Wholesale Closeout - Bargains To Be Found

PhotobucketThere is a constant source of bargain merchandise available. However, finding reliable wholesale closeout liquidators or other profitable merchandise such as surplus and drop ship can be a mine-field. The problem is you have to pay for the products in advance of shipment. Then you hope you don’t get stuck or spend the next several months getting your money or credit back. C.O.D. shipments are not practical on a large scale or to assure quality.

You’ve heard the nightmares… or lived them! Here are some practical tips for finding the RIGHT suppliers:

Find out as much as you can about the wholesaler’s business and reputation. Let’s face it, the nature of the wholesale closeouts and liquidation merchandise can lead you to undesirable business relationships. But there are many good wholesaler closeout vendors out there and many of their customers are making high profits on quality products. Research, research!!

Ask for information on the company. If a potential wholesale supplier is reluctant to give you financial information, such as Dunn & Bradstreet, then you need to stay away from them. It is normal for businesses to give out this type of information. If they hesitate… you back off.

Also, ask for references of existing customers… but remember most all wholesale closeout liquidators have some satisfied customers. The key is to ask specific questions.. not just “are they OK to do business with?”. Instead, ask: “Out of the last 100 products you bought from xyz company how many warranty or returns did you have?”.

Buy samples first. We all want to move as fast into a business area but use caution and have sample sent first. Again, all wholesale closeout liquidators will have some good samples to send. Don’t just rely on this. Samples give you a basis for quality. You will expect all future shipment to be of equal quality. Without samples the wholesaler can say “well you knew this was closeout and liquidation merchandise”.

Finally, ask others in this business. There are groups that can be of great help. Find one with at forum or blog and let others advise you on the specifics of who to use and who not to use. Don’t reinvent the wheel…  so to speak.

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Wholesale Directory

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