One of the biggest differences between wholesale and closeout products
is that while wholesale products are available
on a regular basis, closeout products are dependent on unique situations.
For example, Calvin Klein might sell its clothes on a regular basis
at a set wholesale rate, but if it has a canceled order,
or a style that isn't moving, then it might sell it as a
A women's suit with an original retail value of
$200, with a regular wholesale price of $80,
might sell for as low as $39, or possibly
even lower, when it is a closeout.
Often it takes a closeout broker to facilitate the process
for buyers, since the broker knows about the deals
that are available on the market.
But the challenge is that although the closeout broker
might know about the closeout deals that Michael Kors
is offering, he will usually make his money by
charging you a higher price than the brand itself
would charge you.
He might have an exclusive relationship with
the brand, or he simply just purchased
a selection of wholesale handbags before
anyone else had a chance to.
Even if a closeout broker is not involved in the transaction,
and let's say it's a jobber that is offering you a deal
on Polo Ralph Lauren kids clothing, you will still have paid
a higher price than if you had purchased the merchandise
directly from the source.
The source can be the Polo Ralph Lauren company, or a kids clothing
store that is going out of business and is now offering you
the designer's clothes at a below wholesale price.
Dealing directly with the source of the merchandise can possibly
save you up to 90% of the price that would get added
when a middlemen markets the brand name lot to you.
There are various steps you can take to buy closeout
merchandise directly from the sources.
A wholesale search engine such as Wholesalecentral.com, or
a handbag directory like Wholesalequest.com, can give you listings of sellers,
this way you can research
the product offerings to see who actually owns themerchandise.
The seller that has the lowest price
might very well be the actual owner of the products.
You can also contact designers and fashion companies, and ask them
to notify you every time that they have
excess merchandise that they are looking to
Designers that are new to the New York
Fashion district might
have less buyers calling on them,
so they might more fashion
merchandise for you, and at a lower
price than the more established
runway designers do.
You can also visit company outlet stores
and see what closeout products are
available for sale.
Outlets such as Woodbury Common Premium Outlets
have a wide range of company owned stores
that can have clearance sales.
You can also purchase a coupon book
at Woodbury Common that can give you
extra discounts on your fashion purchases.
Before shopping at an outlet
you should also spend time
looking for coupons online so that you
can effectively lower the price
for the items that you will be buying.
You should also subscribe to the email
lists of various wholesalers so
that you can find out what merchandise
they are closing out and looking to sell.
I have purchased excess, overstock, and sample merchandise
from various brands such as R&M Richards, Voir Voir,
Ecko, DKNY, and Tommy Hilfiger, so I can
assure you that there are many ways to
find super low priced wholesale
merchandise without having to go
You can also periodically visit
closeout warehouses and see what
products are being sold
at an extra discount.
For instance, I have brand name
kids clothing that I am selling
at below wholesale prices
at my Brooklyn clothing warehouse.
Lastly, one way to purchase
products at really cheap prices
is by attending auctions for
stores that are going out of
There are websites such as auctionzip.com
that can help you locate auctions that
take place around the United States.
You can even go ahead and get in touch
with the auctioneers and see
if they know of any available deals.
Remember, in order to make sales
you have to have products to sell.
So if you ultimately have to
purchase goods at a higher
price through a middleman,
it still can be better than not having
any items to sell at all.
As you build connections in the
retail industry people should
start approaching you with offers
on items that they want to unload.
You are welcome to visit my business,
Closeout Explosion, the next time you
are in New York.
My business is located about 25 minutes
away from the NYC Garment District,
and relatively close to three major
international airports, JFK, LaGuardia,