You are no different than most of us who desire low priced branded products. Walking into Ralph Lauren or Prada, every individual’s heart skips a beat seeing the sky high prices. What most customers want is that branded Gucci watch for a much lower price and if only that were possible, it would be through closeouts and liquidations.
Speaking objectively, closeouts and liquidation both fall under different courses of academics. Closeouts are tied up to retailing and merchandising while the liquidation comes into play on financial grounds. However both these terms have relevancy for wholesale buyers because of the domain they are operated under. In layman terminology, liquidation refers to a situation of winding up a corporate which results in redistribution of the assets of the company. Under the state of liquidation, companies take the route of overstock clearance through liquidation sales. Overstocking poses great threat and complexities to any running business. Not only does it add up to the cost but also is a predicament of enough space for new stock. Now you might confuse this overstocking with buffer inventory but buffer is only positive addition when it aids sales whereas overstocking is ordeal of inefficiency and ineffectiveness. On the other hand closeout occurs when a business wants to make room for new inventory or get rid of the existing bulk of stock. It refers to buying in bulk at a cheaper rate. Factory closeouts/Closeout Liquidators are demarcated in the following two proponents:
- Salvage products
- Job outs
Salvage Products
Salvage merchandise focuses on the augmented product levels like customer returns and damages for instance. Damage is a byproduct of mixed assortment at times but it surely does not mean that any damaged product is unsellable. Sale depends on the product and extent of damage.
Job outs
If any product on the shelf should fail to grasp the attention of customer or does not sell itself then job outs give them a way to do so. The merchandise on the retail floor is sold to a newer target audience with a reduction in the cost. Retailers are encouraged and often constrained by the bulk of inventory to go for overstock clearance.
Many liquidation websites promote company closeouts to circumvent the problems faced by the retailers and the businesses. The prices in job outs are usually lower than that of the wholesale merchandise which most customers look forward to.
Most merchandise liquidators deal in providing high quality closeouts. Since many retailers shy away from the closeouts they take refuge in the service of Merchandize Liquidators. Inventory liquidators might as well aim for emptying the inventory as they cater to changing business environment and customer preference, as they realize from experience that they must act promptly and liquidate their overstock clearance inventory.
Detail or more information about this topic is continue to our next post "win-win situation", must come back to read our next post update, Thanks to all the readers.
