What Is A Closeout Broker?
What is a closeout broker? He or she is an independent salesperson, also known as a jobber, who works with manufacturers, wholesalers, brands, or retailers, who have a lot of inventory that they want to get rid of. A closeout salesperson will go to your business and help you get rid of the excess inventory so that you can put it out on the market for you to sell. You will be able to get the most amount of money for your inventory by selling directly to consumers, although often it makes more sense, for efficiency and time reasons, to sell your merchandise in bulk in one shot, even if doing so means that you make less on a per item basis.
Why would anyone need to use a closeout sales person? This is a question that many people ask when they first encounter a closeout broker. The answer to this question is that closeout brokers can use their connections to make great things happen to you, especially if you have a large inventory that you want to get rid of. Some of the best times for this to happen is when businesses tend to have a lot of inventory they want to sell. The closer you can get to the end of the inventory cycle the better.
Why does a closeout broker bring goods in? Brokers bring goods in so that you can sell your inventory. If you do not have enough inventory in stock, you may not be able to sell all of it. If you have closeout stock you can offer this stock to other businesses and help them sell it by having it sit in your office until you can find buyers. There is also a lot of money to be made if you know where to look.
How does a closeout broker find the items that you have available? A closeout sales person looks for stock that is close to being obsolete. That means that it is out of style and will not get much use. The more often this type of stock is used the more money you can make.
Why is inventory so important to a broker? This is why it is important for you to find a closeout broker. If they find a good closeout stock then they are going to get a percentage of the overall sale.
You want to find a closeout broker who has experience and a proven record of success. You do not want someone new to do this type of work. The closeout sales people need to have a solid reputation for being successful. They should have years of experience selling closeout merchandise. You want someone who has been able to turn loose, overstocked inventory into profits. If you can find a broker who worked for a large retail chain such as Marshalls or Walmart, he or she is likely to have connections with the current buyers, and employees of the retail chain.
How much money do you have to spend on a closeout broker? These brokers do not, or at least should not, charge upfront fees. They make their money by selling offer your closeout stock at either a markup to your asking price, or by receiving a commission from you based on the net sale proceeds. If you have a lot of inventory then you may be able to get more for your merchandise than you can sell it on your own. You should also consider listing your merchandise in bulk, on sites such as Liquidation.com, WholesaleCentral.com, CloseoutCentral.com, and eBay.com
Now that you know what is a closeout broker and what it costs you should be aware of when you are getting closeout stock. You do not want to wait too long before selling what you have. This will only increase the amount of time it takes for you to make a profit. You want to sell what you have as soon as possible, since the longer you wait, the chances of your merchandise become obsolete will increase.
When you start receiving calls from a closeout broker, especially when you feel under pressure to liquidate your products, it is important that you listen to what they have to say. They may be able to give you crucial information on what you need to know about selling your closeout stock. This can be beneficial if you are in fact trying to sell something, since even if a closeout broker determines that your merchandise is not a fit for his or her clients, the broker can still give you great advice on how to liquidate your inventory, or connect you with another broker that can be of assistance to you.
If you find that you are receiving calls from a closeout broker then you need to first check out the company that they are calling from. There are many legitimate brokers out there who you might not recognize. You can check with the Better Business Bureau to see if there are any complaints filed against the company. If there are no complaints then you can still continue to do your research, and find out if the complaints have any merit, or if the complaints have been resolved.
On the flip side, if a closeout broker calls you and offers you an amazing deal on a lot of available merchandise, you should proceed with caution. Be sure that you do not go ahead an purchase stock just because someone is calling you and telling you about a great opportunity. You should check out the company and check to see what they have to offer. In fact, no matter how good the deal is, it is only worthwhile to buy the deal, or any merchandise for that matter, if you have customers that you can sell the merchandise to at a profit. For example, if someone offers you 1,000 records at .01 each, but you don't have customers who listen to records, then the deal is probably not for you (unless you want to listen to all 1,000 records for your own enjoyment). On the other hand, if someone offers you a pallet of brand name dresses, and you know that you can make money on the dresses, even if the profit is relatively modest, then the deal is probably for you.