How Closeouts from Store Closings Can Help Your Business

 

Just like new stores open their doors every day, there are stores that for one reason or another close their doors as well. The reasons vary, from retailers who are retiring after a lengthy career in the business, to stores located in a market that has too much new competition, to a shop that suddenly faces the prospect of a big box retailer opening up in its vicinity.

When a store closes you can have the opportunity to purchase its merchandise at a rock bottom price that is often at below the wholesale cost. While purchasing brand new merchandise at such a low price can be exciting, you do need to be careful. You want to make sure that the merchandise is not obsolete, defective, or out of fashion.

On the flip side, if you carefully research the merchandise that is available for sale, you can make some unbelievable buys. For example, a friend of mine told that, once he went to a going out of business sale where the store owner had lost his lease. Since he had nowhere to sell his clothing and accessories he was happy to sell to him the entire contents of his store at a low fixed price. My friend then turned around and resold the merchandise to my customers for less than half the original wholesale cost of the merchandise. As you can see it turned out to be a great deal for his customers, and the store owner was happy to walk away with something instead of just having to store his merchandise indefinitely in his garage.

If you are considering purchasing the contents of a store that is closing you will want to research the items online, find out their actual wholesale cost, and see if your customers would be interested in purchasing these items from you. The key is to be realistic in your expected resale price as well as in the offer you make to the store owner, this way you will be able to make a great deal happen.

So how do you find stores that are closing? You can try driving around your neighborhood, look at the ads in your local newspaper, and pay attention to stores that you are already frequenting in your daily shopping.

Once you master this part of the closeout business you will be well on your way to building a successful business. I am not saying that it’s easy to find these situations, or to make a deal with the store owner, but if you can make a great deal happen you could be very happy.

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