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3 Things you can do to increase your profits while keeping your risk at a minimum.

If you are in the business of buying and selling off-priced, distressed inventory, you understand that your success depends on your ability to find quality products at a good price.  Even with the economy struggling, there are still some great deals to be had!

Here are some things you can do to make sure you succeed:

1.    Find and deal with companies that have direct Salvage and Liquidation agreements.

This cannot be overstated!  The liquidation industry is replete with individuals masquerading as Liquidators.  Most of them are simply brokers and do not own any merchandise at all.  They are simply looking for people to give them money so they can go shopping for a load.  It’s also not unusual for merchandise to go through multiple channels on the way to the end consumer.  While there are some good brokers out there, there are many advantages to dealing with the direct source for the merchandise you need.

The “direct source” liquidator will possess knowledge about the merchandise you are buying that the typical broker doesn’t possess.  That’s because they deal with this merchandise every day and have the opportunity to see it first hand.  You can also get faster service through a direct source liquidator.  The direct source liquidator is going to have the product you need on hand when you are ready to buy.  That means you spend less time looking for merchandise and more time making money.

2.    Understand your freight costs.

Freight is a reality for everyone!  When you buy a gallon of milk from the local grocery store, you are paying for the freight that store incurred when they bought it.  It’s just a fact of life.

Having said that, you can save money on freight when buying liquidated goods.  Many times pallets can be combined to save money on shipping.  Be sure to ask the company you are dealing with if you can combine pallets. There are also times when you can put the equivalent of two truckloads worth of merchandise onto one truck.  This is called “double-stacking.”  You need to make sure you ask the liquidator you are buying from if they can double stack for you.  Sure, that means buying two loads at the same time, but the cost of freight per item just went down.  That means money in your pocket!

3.    Make sure the company you are buying from is financially stable.

Do your homework!  Don’t just send money to a company hoping they are legitimate!  There are many “companies” out there that are only interested in turning a quick profit!  They are not concerned with you or your business.  One of the best things you can do to make sure you are dealing with a legitimate liquidation company is to visit their facility.  Those illegitimate companies that are prowling around will not invite you to their facility because they don’t have one!  It only takes one or two bad deals to put a new company out of business.  Do yourself a favor and do your homework!

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