Congratulations, you’ve purchased a truckload of liquidated products. You’re taking the next step to ensuring you have plenty of inventory to keep consumers satisfied. You’re also helping to grow your business.
However, before you consider purchasing liquidation truckloads, it’s a good idea to make sure that you’re actually ready to take on the inventory. After all, you don’t want to leave the pallets sitting in a parking lot. This means you need a plan to help everything run smoothly.
Steps to Take Before Purchasing a Liquidation Truckload
Before you go overboard and start looking at multiple liquidation truckloads for sale, you should consider a few factors. Doing so can help ensure everything goes smoothly from the time the truckload arrives to getting the items to consumers.
Create a Plan
If your goal is to add inventory without paying market prices, liquidation truckloads are a great option. However, receiving multiple pallets of items at the same time can be overwhelming, if you don’t have a sales plan. This probably means making some changes to your current business model.
For example, you’re probably going to need to expand your sales strategy. Instead of continuously stocking your shelves every time a product runs low, you may want to consider having a warehouse sale. Consumers can purchase the items off of the pallet. This way, you don’t need to worry about spending time and resources stocking your shelves.
Even though most businesses have an online presence, not all sell their products through their website. If your online presence doesn’t include an option for consumers to purchase goods, now may be the perfect time to revamp your website.
You can list the products online and ship them out as customers make purchases so this way, the inventory isn’t taking up space in a storage facility or on your store shelves Chances are, you’re probably going to need to employ a few strategies to move the merchandise.
Storage Space
Most liquidation truckloads contain around 26 pallets. Each pallet typically measures 40” x 48” and a truck can hold up to 45,000 lbs. While the type of items does help determine the amount. You’ll receive fewer large appliances compared to a pallet full of shoes, clothes, or small items.
Even though the type of merchandise will affect your storage needs, you’re probably still receiving around 26 pallets. You’re going to need plenty of storage space to unload, store, and process the items. If you need to lease a warehouse or another type of storage facility, this is going to come at a cost.
Something else to consider is you’re probably going to need access to a loading dock. Some shipping companies use trucks with lift gates but not all. To get the pallets safely off the truck, a loading dock is usually a necessity. Some freight shipping companies also only deliver to a commercial address, which may be another reason to lease a warehouse.
Time and Resources
You’re receiving over 20 pallets loaded with merchandise and this isn’t something one person can easily handle. The items will need to be processed, sorted, cleaned, and possibly even tested.
An option is to sell the inventory ‘as-is’ and there’s nothing wrong with taking this approach. You may not be able to charge your originally intended price but this approach can make it easier to quickly move the inventory.
If you’re working with limited staff, processing the liquidated merchandise may mean bringing on additional help, which is another expense you should consider before purchasing a liquidation truckload.
Getting the Most Out of Your Liquidation Truckload
Getting 20-plus pallets of merchandise at a steeply discounted price already adds value to your purchase. However, you probably want to best maximize your return on the investment. In other words, you want to add as much value as possible to your purchase.
Increasing the selling price is always an option, but it’s not always the right one. Purchasing liquidation truckloads allows you to pass savings onto your customers, helping to increase repeat business and boost brand loyalty. So, if raising the prices isn’t the best option, how can you maximize your potential profits?
Repackage the Inventory
After cleaning, sorting, and testing the inventory, try to repackage the items. Granted, some items are going to be a little more difficult than others. Getting a full-size washer in a large cardboard box is noticeably more difficult than packing up a gaming console.
However, the closer you can get to the original packaging, the easier the item is to sell. You can usually charge a little more for packaged goods compared to ones sold out of the box. If you can’t use the original packaging, try to get as close as possible.
Harvest and Resell Parts
Don’t be surprised if some of the items on the pallets aren’t in the best condition. Remember, your liquidation truckload has probably gone through a few shipping centers and damage is usually inevitable.
Sometimes, you or an expert can repair a damaged item. If so, you can list it for sale as a refurbished product. Yes, you must let consumers know if any item for sale is refurbished. So, what about products that are beyond repair?
Before you toss them in the trash, think about harvesting any usable parts. This can be anything from accessories that work with similar products to odds and ends like laptop batteries and power cords.
Even a bag of nuts and bolts designed for a specific product can be harvested for sale. You never know what a consumer may be searching for.
Should You Purchase Liquidation Truckloads?
Even though buying liquidation truckloads comes with multiple advantages, it doesn’t necessarily mean it’s the right move for every business. You’re going to need storage space and manpower. Sorting through 26 pallets of inventory is time-consuming. You also need plenty of storage space and this can come at a cost.
Creating a plan before purchasing a liquidated truckload can help ensure you’re ready for the influx of inventory. Don’t forget about creating a marketing strategy, you don’t want the inventory sitting in a warehouse or taking up space on your shelves. With a plan in place, liquidation truckloads can be a smart business decision.
