A lot of people are looking for winning products in liquidation businesses to book more profits. However, little do they know that winning products aren’t the only things responsible for the growth of their liquidation business. Today we are going to talk about a few tips that can help you scale your liquidation brand, and also help you find more profit-influencing factors in your liquidation business. If you’re willing to make more profit and are tired of trying everything else, then today’s article is just for you. So without further ado, let’s jump right in.
- Find the right source to buy from
The best thing about a business, and a liquidation business is that you can choose to reduce your cost price. There is no standard pricing in the market, and if you wish to, you can switch the wholesale liquidator that you buy from at any point in time. However, if you have settled with one of the more popular wholesale liquidation sellers, then you need to ask yourself a few questions about the same. First and foremost is about the authenticity of the seller you’re buying from. Do not buy from an online liquidator that promises you to sell for a much cheaper rate just because they don’t have a certification. If you do so, you are setting yourself up for a scam and before you know it you’re the one behind the bars. Always buy authorized liquidated items from a verified seller. Now that you have made sure that the seller is authorized, the next thing is to scour for a cheaper price. There are only a few ways of making more profit. Wither cutting on the costs or making more on the margins. But, since we are trying to focus on the former, try to find a seller that sells the same type of merchandise for a much cheaper rate. Thirdly, figure out your transport situation, because that is something that takes up a lot of money. Preferably use your personal vehicle for the same.
2. Beware of what you’re buying
A bit of knowledge is necessary to succeed in this business. Even though it might appear easy from a distance, liquidation is probably one of the ore riskier businesses at hand. This is because, if you’re not aware of a few technical terms, then people can easily make a fool out of you and leave you with nothing but a few empty boxes. however, if you have managed to ensure the first tip, then the risk of you being scammed reduces by a lot. Next, you need to know about condition codes. These are numbers that indicate the quality of an item and different sellers use different code schemes. So ask them before the auction to be on the safer side of things. Also, make sure you know the origin of these liquidation pallets, because if what you’re buying are returned items, then you might face difficulties later down the line.
3. Strategize everything in advance
Strategizing is important. If you don’t make a business plan then you’re doomed to fail. The business plan isn’t something difficult to make if you know some finance terms. You can also go on youtube and see how a plan is made and ad or remove variables based on your business alone. If you’re looking to maximize the profit and you know the number of items you’re going to buy their type and the quantity, you can maximize the profit by using linear programming, which is not as difficult to understand. But making sure that the logistics are planned is more important if you’re starting out. The shipping details, name of the seller, competition research, and much more.
4. Brainstorm possible pitfalls
Since we have just talked about strategizing, this is something as important. Brainstorming ideas about the possible downfalls of the business strategy is really important to save the business from actually dipping. Since the liquidation business is pretty linear, there are only a few ways for it to fail. These are determined by the competition in your location, the amount of inventory you’re going to stock, the inventory location, transportation, and much more. Make sure that you have possible alternatives and mitigation strategies in case something goes out of hand. This will help you in reducing the risk of failure immensely.
5. Create a strong social media presence
If you’re about to start a liquidation store, especially an online liquidation store, make sure that people know about it. Since word of mouth takes a long time to travel, use Instagram and other social media platforms instead. Not a lot of liquidation brands are coming forward on social media, which is why you can take a lead in the same. Creating a strong social media presence requires you to have a reliable brand image and a detailed introduction of what and who you are, you can use SEO tools, to help you scale the online presence and make sure that you are still relevant in the niche. If your business gets attention on the gram, then it might not be a long time before you see people come swarming into your store.
If you have been struggling for some time trying to figure out the profitability of your liquidation store business, then these five tips will help you out for sure. These tips have been working for the people in the industry for a long time and have very strong foundations. These fundamentals are a must to nail to make your business a success. Till then, keep scrolling and spread the word.