Poor Fudjj, LoL. I got what you were trying to say the first time. I'm out of breath after reading all of this and I REALLY get it now. :)
I get the problem with liquidated stock that I'm gonna have a huge problem with 'cherry pivked' loads. Aside from ppwdg I'm looking for a potential second or third source. According to everything I'm reading, to avoid this, I have to either buy a truck load from a retailer that'll sell to me or a lot of trial and error?
I'm getting a little ahead of myself, fore I have yet to purchase my first pallet. However, I just want to get all my ducks in a row. :)
Thanks Tildorf, I think I'm going to need a good holiday after this.
If you get into liquidation, get into it as a long term venture. Loads in this industry will vary, even if you are buying the same load from the same supplier, the chances are really high that each load will return a different outcome.
Some loads can make good margin, some will make small and of course if you are buying in smaller loads, you can take a hit.
I always suggest to people interested in liquidation take a look at viatrading.com. You can order buy the truckload or buy the carton with most of their stock, and they are well respected in the industry for not cherry picking loads.
They also give you the option of buying clean loads, of course the price is slightly higher, but if you're new to the liquidation game it can be a good way to start.
Just like anything, buying in volume will get you the best price, and increase the margin for profit, buying smaller loads can hurt you, especially if you have the farm riding on them.
Having said that, big loads can also hurt you, but there is more chance to recover when you have the volume to play with.
The best tip, make sure you are dealing with the tender holder, that is the liquidator that has the tender to buy the merchandise from the retailer. There are lots of brokers in this industry, buyers that will buy x amount of pallets from a tender holding liquidator, then break those pallets down, cherry pick the best gear for their own sales, then repackage and market themselves as a liquidator.
Of course they are a liquidator because they are selling liquidated stock, but you are going to be paying their profit, and risk loosing the best products buy sourcing through these brokers.
Liquidation.com is full of these types of situations. People might just buy a pallet, they strip it of everything of real value, then package the pallet into smaller carton lots to resell.
Buyers bid on the carton lots because they can't afford to buy pallets, and what they end up with is nothing but the dregs of the original load.