It’s the same question I hear on a
daily basis, “can I just buy one brand?”. I get it, you know it’s a famous
brand, and I understand the thinking because it’s a well-known brand it will
sell. But there is a problem with this approach to liquidation, and I am here
today to tell you that this is the not the best approach to buying liquidation
merchandise. To truly succeed with liquidation merchandise, you need to be able
to think outside the single label box.
Maybe you have a boutique
retail store, and your customers are hounding you for a hot brand or perhaps
you are an online reseller, and maybe you have scored some big profits on one
brand in the past, and now you want a steady supply.
The truth is you’re not the only
one hunting for these hot brands, thousands of other retailers and resellers
are also on the hunt for large quantities of the same brands and liquidators
know this. Everyone knows about hot
brands which is why they are hard to find and sell at huge premiums. It’s all
about supply and demand, the more popular the brand, the less ends up in
liquidation channels, and that limited supply leads to higher prices. Buying
these marked up single brand lots is a classic resellers trap
that you need to avoid. What we hear a lot, “I want this brand because it
sells!” Sellers have to understand that selling is not the problem. Making a
sale is easy! You can sell anything if the price is right. The more difficult
task is selling and making profit! If you are paying a premium for one
brand merchandise, you are at a competitive disadvantage before your first
sale. Sure, the brand will sell, but your margins will be thin if any. You are
forced to raise your price, but now your price is higher than your competitors
and your merchandise is not selling!
Instead of looking at a
particular brand you need to look at the bigger picture when shopping for
liquidation merchandise. If you get too hung up on just one brand, you can
easily overlook the vast array of other opportunities offered by other brands
that sell as well if not better and with better overall margins.
Successful sellers know how
to recognize a great opportunity when they see one. They don’t obsess on one
small detail in this case brand, they look at the bigger picture and know how
they can successfully profit from a diverse grouping of merchandise.
Understanding this, separates the sellers from the money makers.