Though we may not realize, most of us are quite familiar with the wholesale market. In fact, if you have ever shopped at stores like Sam's Club or Costco, then you have taken advantage of the wholesale market and have most likely saved more money than you would have by purchasing the exact same item, of the same quality, elsewhere. Wholesale closeouts save you even more money, up to 90%, on anything from general merchandise to apparel.
What are Wholesale Closeouts?
Wholesale closeouts are sales events that feature product prices that have been reduced to a minimum. In this way, they are "priced to move" and represent the final chance to buy the product. Every wholesaler decides the final price differently, but in general, the price is reduced to what they spent to acquire the product plus a percentage of the profit mark-up. So, if the product was originally sold to make a $100 profit, a 90% savings would make the closeout price equal to $10 plus the price the wholesaler spent to acquire it.
Why do Wholesalers CloseOut?
Wholesalers closeout for many reasons, depending on the type of merchandise they stock. Some of the general reasons are:
- To eliminate excess inventory.
- To make room for new inventory.
- To eliminate the costs to store seasonal items for the next year.
- To meet the manufacturer demands.
- To liquidate Inventory.
In some instances, wholesale closeout sales are due to the wholesaler's need to liquidate, or convert its physical assets into cash. There are two main types of liquidation: wholesale liquidation and salvage liquidation. A general merchandise liquidator may need to liquidate for a variety of business-related reasons, including to meet urgent debts and bankruptcy. Salvage liquidation occurs when the merchandise has experienced significant damage and can no longer be sold at retail prices.
What is a Wholesale Closeout Stores?
A wholesale closeout store is a business that obtains its merchandise from a wholesaler's closeout sale. They may have special contracts that dictate first selection or exclusive access to the closeout merchandise. Stores, such as Marshalls, TJ Maxx and Value City are wholesale closeout stores; they obtain closeout apparel from wholesalers and department store returns from their partners. Big Lots and ValueCity Furniture are other examples of wholesale closeout stores. They, too, purchase customer returns from major retailers to sale at a discount.
Who Shops Wholesale Closeouts?
From saving-enthusiasts to small businesses, people who shop wholesale closeouts are looking for a smart way to save money. Some specific examples are:
*Homeowners looking to upgrade their appliances, floors or cabinets.
*People who love brand names, but hate department store prices.
* New restaurateurs who need expensive supplies like stoves and ovens.
* Other businesses, especially wholesale closeout stores.
Wholesale closeouts feature all kinds of products of retail quality for less. For even more savings, look for wholesalers that offer products that have been slightly, but insignificantly, damaged like a stove with a small dent in its side. Wholesale closeouts are great places to shop for people who are looking to get more product for less money.