Liquidation auctions are a great way to find various products for an inexpensive price. However, it is important to research the liquidation market carefully before making your first purchase. It is also necessary to learn the ropes of product reselling before buying your first liquidation pallet. By doing so, you can ensure that your new business venture is a success.
The best place to buy liquidation products is from a reputable wholesale liquidator. Many large retailers such as Walmart, Macy’s and Home Depot have private online marketplaces where they sell their overstock and liquidation inventory to small businesses like yourself. These marketplaces allow you to purchase liquidation merchandise in wholesale lots by the box, pallet and truckload. You can pay by credit card or bank wire. Liquidation merchandise often includes customer returned items, refurbished products and overstocks that aren’t selling well. These are sold at a reduced price to make room for new merchandise that is more profitable.
When shopping at a liquidation store it is important to read the labels on the packaging carefully. Liquidation stores typically have no return policy, so you need to be sure that the item is what you are looking for. Oftentimes the liquidation label will have a “testing table” where you can open boxes and plug in electronics to see if they work. This will save you a lot of time and money in the long run, as returns can be costly.
It is also a good idea to check the prices of the goods before and after the liquidation sale. Often, liquidation companies will sell their stock at a lower price than the manufacturers’ suggested retail price to get as much profit as possible out of the inventory. This is common with seasonal goods or when a new model of a popular product hits the market.
During the liquidation process, insolvency practitioners will assess the company’s assets and liabilities to determine what can be sold and to whom. The proceeds will then be used to pay the liquidator’s fees and to distribute funds to unsecured creditors.
There are a number of cheap liquidation options available to limited companies including Members’ Voluntary Liquidation, Compulsory Liquidation and Dissolution. Insolvency practitioners can help you understand the differences between these processes and choose the one that is most suitable for your situation.
Dissolution is generally considered the cheapest option for insolvent companies as it only costs PS8 to have a company struck off the Companies House register and dissolved. It is a relatively fast and simple process but does still require the insolvency practitioner to handle creditors, notify stakeholders and distribute assets before the company can potentially become the legal property of the Crown. The cost of a full liquidation will vary depending on the assets and liabilities held by the company and can be up to PS100,000. Regardless of which solution is most suitable for you it is important to seek the advice of an experienced insolvency practitioner.