I am sure you have seen countless offers

for closeout merchandise from both retailers

and wholesalers. You can find closeout sales

on Amazon, eBay, at Macy's, at your local

department stores, at wholesale warehouses,

and by literally thousands of retail

and online sellers.




While it's become really popular for retailers,

as well as for wholesalers, to label every deal

a "closeout", finding a closeout that you

can actually make money with can be challenging.




Remember, a big discount on brand name

merchandise only benefits a seller if

her customers can't easily get the same deal.




If Target is having a closeout sale

on boys jeans, and the price per pair

is only $5 each, that price is only

attractive if Target has a limited supply

available, or if your customers do not

have a Target to shop at.




But if Target is having a national sale,

and those jeans are available

to everyone, then you

are going to have a challenging time

selling the boys denim at a profit.




The same is true with a

wholesaler.




A closeout deal needs to be unique

and scarce in order for it to be

potentially profitable for a retailer.




It doesn't have to be necessarily unique

or scarce in the city that the wholesaler

is located in, but it should be in the market

in which the retailer does business.




For example, wholesaler in Manhattan can offer

a boutique in Nigeria a deal

that is an amazing closeout offer,

provided that the products being

offered are not available at the

same price in Lagos or Abuja.




For example, let's say you visit a fashion showroom

in the NYC Fashion District.




The salesperson offers you a closeout deal

on a selection of Coach handbags.




You are excited since the Coach handbags are being

offered to you at 50% below the regular retail price.




But are you actually getting a good deal or not?




If there are many shops selling the Coach handbags for

50% below retail, then you are actually paying the 

going rate for them.




But on the other hand, if most sellers are selling them

at only a 10-20% discount, then you are definitely

getting a good deal. (Assuming that you are comparing the

same model).




Or let's say you visit a wholesale supplier in Brooklyn

and they offer you a closeout deal on Calvin Klein dresses.




The dresses are only $19.99 each, which is about 80% below

the retail price.




If your customers are accustomed to paying $50 for these dresses,

then in this case you are getting a great deal since you

can resell the Calvin Klein dresses for more than you

are paying for them.




It's very important to do your research on any wholesale products

that you are considering buying.




You need to know what the actual selling price of the item is in the

market that you will be retailing it in, while factoring

where and how else your customers can purchase that item.




If your customers can easily shop for it online at a lower

price you need to know that. 




You also want to know if the product is in demand.




You can purchase a closeout pair of BCBG shoes at

90% below retail, but if your customers do not like

those BCBG shoes, then you essentially

have not gotten a deal that makes sense for you.




Having said this, you can sometimes encourage shoppers

to try out a new brand name or designer label item

by giving them a fantastic price.




With the example of the BCBG footwear, if you offer them

to your shoppers at 80% below retail you might attract their

attention.




Factor in also any associated costs that will increase the

actual wholesale cost of the item, such as shipping

and labor.




If you are an Amazon or eBay seller there are many apps

that you can download that will tell you how much

you can resell the items for on Amazon or eBay,

and what your actual net result will be after any

applicable fees.




One important point is that if you want to negotiate

in the most effective way possible then you

need to have a compelling reason for why

a closeout seller should lower his price. If you

have done your research, and you share it with

the vendor, then you will have a better chance

of getting a lower closeout price than if you

just asked for it.




Remember, although you can get fantastic deals

from wholesalers, you can also purchase closeout

merchandise directly from brands, designers, and

even from retailers.




I have seen some really good clearance sales at

department stores such as Macy's and Sears,

that effectively meant that the 

merchandise was being sold at a true closeout

price that could enable a seller to potentially

make money.




If you are going to purchase clothing, shoes, or

any other item, for resale from department stores,

you will want to look for any available coupons

in your local newspaper.




I have seen many Macy's coupons in the New York Post

and Daily News that can give you an extra

20% discount on your purchases.




If you are buying an Tahari suit at a 60% discount,

and use a coupon that gives you an additional

20% discount, then you have effectively

saved 68% off the original retail ticket.




There are also many sites online where you

can find coupons for retailers that

you are likely already shopping at.




If this sounds like too much work,

and I do understand that it can

take a great deal of research, time,

and effort, you can always visit

clothing warehouses like my

Brooklyn business, Closeout Explosion.




Many retailers, especially flea market

vendors, like purchasing products by the

pallet.




A wholesale pallet can provide them with

a large assortment of overstock inventory at

below wholesale prices, but the

challenge is the uncertainty of the

contents.




If the price of the pallet is low enough

to offset the risk it might be worthwhile,

or a vendor can take his or her time

visiting warehouses and making their

own selections.