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Blog - designer wholesale clothing

Don’t chase brands instead capture profits.

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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.

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