Liquidation, closeouts, and wholesale merchandise is a perfect way to start a new business. The cost to start is low and the profits are high. With our customers, we always advise that they start small and build slowly so they can learn to manage the business properly and create additional cash flow to expand over time. Our best customers always started small and grew large over time.
Types of Business Models
The very first step is deciding how you are going to make money with liquidation. Below are 4 most popular ways to make money in liquidation:
For liquidation products, we recommend starting with eBay because it allows you to sell items that range from brand new to use. These business models are great for new business owners because you can start small selling online and grow over time. Maybe the first year you use your garage and after some success, you might have a warehouse.
A relatively new store concept: The Bin Store model is a flat price free-for-all store where new merchandise is loaded into the store each week. The Bin Store is for those who have some money to get started but don’t want to be too complicated with operations.
A more traditional store – like a thrift store – each item is inspected, ticketed, and tagged for resale. Discount Stores are for more experienced business owners due to the rent, payroll, and other operating functions.
Like a Discount Store but on a much smaller, less permanent scale. You still ticket and tag, but you rent a booth space for a short time at the local flea market. Flea Markets are perfect for people just starting out who want to learn about the business.
Also, we always have to remember about getting a Resale Certificate in order for you to be able to sell any type of goods