wholesalepalace.com Blog

Come next month, millions of Americans will be getting checks in the mail.  Free Money!  Many national retailers have already stated that they will be offering sales and incentives for customers to spend those checks in there stores.  The real question is, what will SMALL retailers be doing to grab some of the cash?

Ask for it - One of the easiest ways to grab this money is simply to ask for it.  Offer a “Tax Rebate Sale”, or put together a package deal worth $600 (the amount most tax payers are getting).  Place big signs in your store, or include a coupon code in your online advertising to help promote the idea.

Often times, small retailers neglect to take advantage of special advertising opportunities.  Don’t miss out on a potential windfall next month when those checks start rolling in, ADVERTISE!

Most wholesalers have excess inventory from time to time.  It’s just the nature of the industry.  The key to “profit” with excess inventory is to move it quickly.  I say “profit” because most of the time you are breaking even or even loosing money on the inventory.  Never the less, removing it from your warehouse quickly is the key to freeing up funds to buy more profitable merchandise.

One of the best places we’ve found for moving closeouts fast is a website called liquidation.com.  You must start all auctions at $100, so you are taking a risk if you list high value items.  However, if your goal is to move your merchandise quickly, you will definitely find a buyer here.  While you can use other auction sites like ebay, liquidation.com is known more for the b2b products, so there are many retailers looking for good deals.

If you have very large closeout lots, you can also contact companies like Discount Wholesalers or Via Trading.  These companies have programs in place were they can purchase excess inventory and resell it to smaller buyers.

Times are tough for retailers.  Wholesale prices continue to rise, gas prices are crazy, and the dollar bill in your pocket is worth more to a Canadian than it is to you!

So how do retailers survive in a week buyers market?  The answer is simple (even if its not easy), Careful and Methodical Management of your business.  This means managing every aspect of your business more closely than usual.  From the cost of your inventory, to the cost of your paper clips.

Many retailers have asked me if raising prices are the answer to weakening sales.  There is no simple answer to this question because it depends largely on your market and the products you sell.  The hard facts are this, if your wholesale suppliers are raising prices, you may not have a choice.  Keeping a health profit margin is key to both the short and long term survival of your business.