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How to pick a closeout company
Your particular situation will be the main factor in deciding which wholesale closeouts company to use. Contrary to what some people believe, a closeout company doesn’t just deal with bankruptcies and store closing auctions. Some closeout companies deal primarily with regular, monthly clearing of some companies overstock. Some deal with liquidating assets, and some have buying relationships that have been in affect for years.
If you are going through a bankruptcy and simply want to liquidate the left-over stock, we suggest you do not over-complicate the process. Bankruptcies are hard enough as it is; we recommend finding the most reputable surplus company you can.
If however you have regular overstock and many unsold items at the end of each quarter or month, you might want to be a bit more strategic in how you go about the process of picking your partner. And yes, if this is something you need to do on a regular basis, the closeout company you work with will become something akin to a partner.
The closeout company will have to fit your recovery expectations, your time schedules, your logistics and your management style. This is why we suggest that you do not rush; rather take your time to interview and talk with multiple closeout companies.
Depending on your location and inventory size, it is possible that there is only one closeout company within reasonable distance, in which case your choice would be made for you in advance if you do not ship nationwide.
If you have the option of choosing from several closeouts companies, then it is best to visit them on location. Try to understand how they run their business and who their customers are. While it is tempting to assume that the best companies are those whose clients include large chains and fancy department stores, this is not always the case.
The best choice for a closeout company lies in a partner who is financially and logistically capable of handling large inventories. Don’t be afraid to ask how much experience they have with businesses of your type and size.
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