How to Broker distressed, liquidation, closeout or surplus
merchandise!
Brokering is connecting the buyer and seller together and collecting a
commission. You market to the same buyers as previously discussed but
you are selling somebody elses merchandise. The commission you earn
is determined by your markup on the merchandise. If a product is selling
below 15 percent of retail then you have a chance to make money by
selling it for 25 percent of retail.
DO not forget to account for shipping cost often this is actually more than
the cost of the load. In order to broker a load you may have to brake it up
between several small retailers and will have larger shipping cost.
.
Even the large liquidation houses broker loads from each other this is a
normal part of the business. Rarely will a surplus dealer tell you he does
not have the product you want he will just get it from whoever has it and
sell it to you.
Calling first to introduce yourself and faxing load offerings to each store
is still the best way to initial contact with the buyers. You may also broker
pallets to make it easier for the buyer in the beginning but your profit
margin will be very thin. Samples when available from your supplier are
not free and usually cost close to retail. It is better to use pictures by
email than samples.
Building a relationship with a particular supplier will be crucial to getting
started. Interview several prospective suppliers until you find one you are
comfortable with. Ask lots of questions let them know you are new to the
business. They will be instrumental in helping you fill orders to your
clients. Only deal with suppliers that have a written policy to not market to
your customers. In the end all you really have is your customers this is
the most secret information you have protect it.
Be sure to get a purchase order with every order this will eliminate
differences of opinion on what the order was when it arrives. Prepare the
client your buyer for the shock of what a surplus load looks like when you
open the doors to tractor trailer it is often not a pretty sight. Each load
has to be sifted thru carefully to determine the good merchandise and
the waste. You will mostly broker to larger clients you are providing him a
service by spending the time to research your contacts and find the
merchandise he is looking for. So charge accordingly for the service you
are providing and any risk you may be assuming. Such as what if when
the buyer receives the load he rejects it.
Provide no guarantee explain ahead of time this is a surplus load with no
guarantees.
After all that is why you are able to buy it so cheap.
Many times it will take as much as 3 months before a store owner feels
confident enough to place an order with you. It is crucial to be persistent
but not pushy let the merchandise sell itself.
merchandise!
Brokering is connecting the buyer and seller together and collecting a
commission. You market to the same buyers as previously discussed but
you are selling somebody elses merchandise. The commission you earn
is determined by your markup on the merchandise. If a product is selling
below 15 percent of retail then you have a chance to make money by
selling it for 25 percent of retail.
DO not forget to account for shipping cost often this is actually more than
the cost of the load. In order to broker a load you may have to brake it up
between several small retailers and will have larger shipping cost.
.
Even the large liquidation houses broker loads from each other this is a
normal part of the business. Rarely will a surplus dealer tell you he does
not have the product you want he will just get it from whoever has it and
sell it to you.
Calling first to introduce yourself and faxing load offerings to each store
is still the best way to initial contact with the buyers. You may also broker
pallets to make it easier for the buyer in the beginning but your profit
margin will be very thin. Samples when available from your supplier are
not free and usually cost close to retail. It is better to use pictures by
email than samples.
Building a relationship with a particular supplier will be crucial to getting
started. Interview several prospective suppliers until you find one you are
comfortable with. Ask lots of questions let them know you are new to the
business. They will be instrumental in helping you fill orders to your
clients. Only deal with suppliers that have a written policy to not market to
your customers. In the end all you really have is your customers this is
the most secret information you have protect it.
Be sure to get a purchase order with every order this will eliminate
differences of opinion on what the order was when it arrives. Prepare the
client your buyer for the shock of what a surplus load looks like when you
open the doors to tractor trailer it is often not a pretty sight. Each load
has to be sifted thru carefully to determine the good merchandise and
the waste. You will mostly broker to larger clients you are providing him a
service by spending the time to research your contacts and find the
merchandise he is looking for. So charge accordingly for the service you
are providing and any risk you may be assuming. Such as what if when
the buyer receives the load he rejects it.
Provide no guarantee explain ahead of time this is a surplus load with no
guarantees.
After all that is why you are able to buy it so cheap.
Many times it will take as much as 3 months before a store owner feels
confident enough to place an order with you. It is crucial to be persistent
but not pushy let the merchandise sell itself.
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