Considering to become a surplus broker

jfaudet

Good day guys,

I don't know if some of you already read it, but I came across an old ebook I bought long time ago. At that time, it didn't make sense to me but now it does.

The book show us how to become a surplus broker where basically your role is to find big lot of surplus merchandise and then find a buyer for the whole lot (take all). I may even add my own tweak to the program and maybe sell some of the stuff offline on classified for example for bigger profit.

However my question is where to find these surplus/manufacturer/distributor that have this kind of surplus? I live in Quebec Canada therefore my goal would be to look for business in my area but does the author means to contact stores like Walmart, Target, Macys, Sears etc. or direct manufacturer and distributors that are supplying these large retail stores to the customers?

I would appreciate answers from you and it would be even better if you have ressources on how and where to find the right person to contact for this kind of business.

Thank you!

fudjj

To be honest, I'm not sure how the surplus market works in Canada or if it even exists like it does in the US. If it does exist as it does in the US and stores.manufacturers do unload bulk stock, then retail outlet is a potential really. It more comes down to how much cash you have as to what size retail outlet you approach as the bigger they are, the more you will be expected to take (that is if they don't already have a contract with another liquidator of course, which many would and those that don't would more likely open tender)

Still, it can't hurt to ask around, never know what you might find if the cheque book is flush enough.

One tip, if the stock you are chasing is fashion based, then the best time to try and source is just prior to the change of season. That's when retail outlets will be more inclined to liquidate last seasons stock to clear room for new season stock.

jfaudet

Thanks for the tips, make lot of sense.

Cash is a problem but if I find a good deal, I thought to ask financing to buy the surplus and then selling to a business, keeping the profit.

fudjj

I would suggest establishing the line of credit to start with, once you have that I would then start by talking to small retailers. Using fashion as an example again, talk to some small boutique retailers about how they make room for new season's stock and if there is any opportunity there for you to assist with liquidating that stock.

You may find that they prefer just to clear stock through sales, but you really do need to speak to the store owner to get a good feel for any opportunities that may be there for you.

fm1234

Wal-Mart actually sells surplus to qualified brokers directly; see their liquidation site Link hidden: Login to view. Most other large retailers either sell directly or via a platform like Liquidation.com -- you can generally find the information on their website or by calling their corporate offices.

Frank

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