Why would a company purchase Closeouts?
The off price industry accounts for hundreds of millions of dollars a year in retail sales. Discount retailers, swappers (flea market vendors), auctioneers, exporters, wholesalers and many other companies purchase these products. Closeouts are usually purchased at a substantial discount to first quality in line production. These discounts can be from 15% to 80% off first quality prices. These discounts are usually passed on to the consumer and afford a merchant the opportunity to promote a product at a discount to the market.
Closeouts (also Liquidation):
Closeouts are generally considered to be excess from a previous season production and are the result of changes in color, design, and fabric or missed deliveries. Closeouts by definition should all be first quality. Name-brand companies are left with billions of dollars in excess inventory each year and are forced to sell their excess inventory for several reasons: Products must be removed from shelves to make room for newer models; a change in financial circumstances or strategy may result in canceled orders; manufacturers may be downsizing or moving facilities; companies may need to reduce inventories for accounting reasons. As a result, the companies are forced to sell this first-quality inventory quickly and below their cost.
Overrun (also Overstock):
Overruns are over production from specific cuttings or orders and are generally the result of the order not matching the amount of material needed. The amount of cloth needed to produce 30 shirts may actually be enough to produce 45 shirts and therefore we have a 15 shirt overrun.
Department Store Returns (also Salvage Merchandise):
Customer returns include an extensive range of merchandise including products actually purchased and then returned by customers, in store damages, marked out of stock products and case packs that have been opened. Most of these products are sold by the truckload from various points around the country. The products are either sold as a percentage of the cost of retail or by the pallet. The store returns are less than perfect merchandise. The merchandise may be slightly damaged, missing a piece, discolored, or is in a damaged box. On the other hand you usually get a large amount of products that are like new. A small percentage of the merchandise may have to be discarded. You are generally paying between 5% to 20% of the retail price. Even with a small throw away percentage and with some of the merchandise slightly imperfect, it turns out that you usually double or triple your money. Yes, there will be the occasional sour lemon, but if you continue to purchase the merchandise on a regular basis, you will see that it is worth your while.
Any inventory, merchandise, or equipment that can no longer be sold at the regular retail or wholesale price, but still possesses value. Surplus is generally caused by discontinuations, overuns, closeouts or overstocks. Most businesses have a need to liquidate 2-5% of their products as surplus.
Do you have a catalog?
No, we do not have a regular catalog however, we can fax or email you a copy of our latest inventory listings. Our inventory changes on a daily basis and we would never be able to keep a proper catalog updated. Our product list has detailed explanations of the merchandise, shipping location, pricing information and any other relevant information that you may need to know about the merchandise. If you ever have any questions, please feel free to contact us for clarification.
How does Exporting Merchandise work?
We have several Export companies that we work with when exporting merchandise around the world. They are there to assist you with Port to Port shipping, Point to Point shipping, customs and other important Export shipping aspects. Also, please visit our Export page for more information.