If you’re looking to make some extra money on equipment liquidation, then read on. You can make a good business out of buying and selling equipment. There are plenty of online auction places and other market places which you can make use of. You can get equipment and can turn a pretty profit.
What Is Equipment Liquidation?
Equipment liquidation starts mainly when companies get shut down. When companies go out of business and liquidate, they try to get the most out of their existing business assets. These assets also include business equipment and fixtures. They try to generate quick cash by selling equipment fast. However, in this, companies automatically have to put the equipment up for sale at discounted rates.
Another scenario where equipment liquidation takes place is when companies have too much inventory. Companies, manufacturers, and retailers these days want to have shelf space available for new inventory. This is why they liquidate surplus equipment.
This equipment is then purchased by wholesale and big liquidators and sold to small liquidators, retailers, and final consumers.
Nowadays, there’s an increase in the popularity of the equipment liquidation business. There’s quite a competition out there and more people are getting in to earn a piece of the proverbial money pie. However, there’s still a lot of room left and ways to make money undiscovered.
Below we’ve discussed 5 Great Ways to Make Money on Equipment Liquidation:
Start With A Good Plan
Just like everything, the key to gaining success and making money in equipment liquidation is to plan it all beforehand. While planning, you get to find out a lot of problems that you may face ahead in the journey. By having a good plan, you can figure out the solutions to those problems early on.
Another important aspect of a good plan is having a budget ready in prior. But, most people miss out on this and don’t have a budget ready usually. As a result, they start losing money, run out of capital, and end up closing down.
Knowing your budget will help you understand your buying potential and save you from overspending. This way you’ll have great help while bidding in auctions or while buying equipment from liquidation stores.
We would suggest you start with a minimum budget. With increasing experience and market understanding, you can consider increasing your budget. A good plan will keep you focused throughout and help achieve wgoals.
Go For A Good Liquidation Wholesale Company
To make money, you need to sell quality equipment at the best prices to your customers. Well, you can only do that when you’re sourcing your inventory from the top wholesale liquidation companies in the market.
Firstly, they’re reputed, and mostly, you won’t have any risk regarding quality, price, or anything. Secondly, in some companies, you get to directly visit their warehouse, check, and then buy pallets.
Most importantly, you get pallets at the best prices in the market, ultimately allowing you to earn huge profits. So, we would suggest you do proper research and reach out to people in this business to know about the right places.
Purchase In Bulk
Remember the concept of economy of scale? Well, this point is exactly about how you can make money on equipment liquidation applying this concept. Just like every other item, investing in liquidation pallets in bulk batches can be much cheaper than buying lots of individual equipment separately. Buying at a large scale will reduce your costs and will automatically boost your profit margin.
Once you’ve bought pallets in bulk, you can then invest your time and effort in examining the pallets. You should determine which equipment to sell individually and which ones in bulk to maximize profits.
Have Rare, Unique, & In-Demand Equipment
Make sure your inventory consists of equipment that is rare, unique, and most importantly, in-demand. With such inventory, you’ll be able to get the most out of your liquidation business.
However, getting such stock of equipment from top wholesale liquidation companies is a tough nut to crack. These days everyone always has an eye to sourcing such items. You’ll need to always stay on alert for these stocks of inventory.
You’ll need to spend your time fruitfully scouring through various auctions or marketplaces. We would suggest you keep visiting sites of liquidators that you choose to get your inventory. You can also connect with them on social networks and subscribe to their newsletters (if any).
Once you’ve sold some equipment, it’s time to build a brand around yourself in the business. You can start selling the equipment off at lower prices and gradually increase your profit margins. You can ask customers to provide feedback, reviews, refer to others, etc. With the help of feedback and reviews, you can make improvements in necessary areas.
So these were the 5 great ways that can help you earn money on equipment liquidation. We hope that this guide was successful in solving all your queries and problems related to equipment liquidation. Whether you are looking for liquidation stores in Seattle or any other place, you can check out our space.