Click to open this 4 page PDF
Learn 7 Questions that you should ask, before buying a truckload of customer returns.
Click to open this 4 page PDF
Learn 7 Questions that you should ask, before buying a truckload of customer returns.
The first question asked by individuals entering the liquidated merchandise business is often, “How much will I make on a load?” While we would love to give you a concrete answer, there are simply too many variables to consider when determining profits. Location can play a huge role in profits and losses. For instance, a load of tools and equipment may sell extremely well in rural areas, but may sell poorly in the cities where the demand is lacking. However, the final results will be determined by the methods used in marketing the individual items. AML account specialists will help you find the load that is right for you.
FORMULA FOR ESTIMATING PROFITS
While we can’t give you a hard and fast rule for the profits you’ll make on a given pallet or truckload, there are some general guidelines you can use when considering a purchase. When dealing with liquidated, distressed merchandise, there will always be an estimated amount of the load that must be repaired or thrown out, which we refer to as the “Waste Factor.”
The Waste Factor is determined by information provided by previous buyers of similar loads and through our own inspections. Some products may be broken, missing parts, torn or soiled – all of these circumstances play a role in determining the waste factor. A waste factor of 20 percent means that you can expect to discard 20 percent of the total load, retaining 80 percent for resale. This percentage varies with load types.
HOW CAN YOU PROFIT WHEN 20% OF THE PURCHASE IS DISCARDED?
Example 1: For Illustration only: We will use a manifested load with $80,000 retail. The purchase price is 10% of this amount, ($8,000). The Waste Factor is 20%.
Cost Of Goods
Load Value $80,000 Retail
(For Manifested Loads there is an estimated Retail Value or Wholesale cost value. The purchase percentage will vary with load types.)
Purchase Price $ 8,000
Freight $ 2,000
(Freight varies pending FOB point and your location).
The Initial Investment $10,000
(pending the success of individual marketing methods)
Retail Value $ 80,000
Less Waste Factor (20%) – $ 16,000
Suitable for Resale $ 64,000
Average Sale 50% Off Retail $ 32,000
(You sell all the items at an average of 50% off the retail price.)
Less Initial Investment $ 10,000
(cost of goods)
Gross Profit $ 22,000
(less expenses, to determine net profit)
Note: If the waste factor happens to be less in the end, the profits will be greater.
This information is provided for the use of those who are new to the industry. This information is for illustration purposes only. Remember there are many load types with varying cost percentages and waste factors. Your account specialist at AML will provide the information you need to assist in your decision making process.
American Merchandise Liquidators, Inc. (AML) specializes in mixed Truckload assortments of quality customer returns from national retail and DotCom companies. AML account specialists are trained to ask the right questions to match customers with “The Right Truckload.” AML offers exclusive loads that you can only buy from AML however, AML also offers loads that you can buy elsewhere. AML is a full service liquidation company offering wide varieties of merchandise by the truckload and pallet. AML is partnered with all of the major returns processors nationwide. AML is a Fast Track Buyer of multiple truckloads of quality customer returns. AML is customer service driven with emphasis on providing “The Right Truckload” to the reseller.
AML offers competitive pricing as a result of innovations in purchasing. We all know that it’s only a good deal when the load is “actually shipped, it arrives on time and there is a return on the investment.”
Buyers have choices. The question is, Who do buyers trust?
AML is reaching out to buyers of all sizes, offering:
On Time Freight. If your load doesn’t ship as we agree at the point of sale, You have the option for an immediate refund.
Accurate Descriptions of the Product
Service After the Sale
From New York to Boston, If the trucks were lined in single file and comfortably spaced, AML has sold an estimated 200 miles of Truckloads. AML has the experience to deliver your load, On Time!
www.amlinc.com (251) 970.1100
AML Xpress Buyers Group
Strength in Numbers
AML has a new partnership with access to what we feel are the cleanest customer returns loads available.
As with all of the product lines we offer, we test the loads in our facility for value and consistency. We also make frequent visits to the floor where the pallets are being created. We found these mixed general merchandise assortments to contain the higher value items that seem to be missing in similar returns loads today. This is important information for profit-minded resellers.
After our first visit to see and learn about this new program, we purchased 9 truckloads to test, (within the first two days). We have sold many truckloads since then with high reviews and repeat purchases.
High Value loads mean better shelf goods that build traffic flow to your store. Greater traffic translates into higher profits. The success of our buying partners and customers is very important to the success of AML and to the professional individuals who work here.
With that said, we feel that it will be wise for us to contract to buy as many of these high value loads as we can feasibly consume. We are reaching out to all resellers who have had past successes with AML in our 22 year history.
If you are interested in making a commitment to purchase a defined volume of this product per month, we want to commit to bring the best pricing and value to you. Commitments range from Multiple Truckloads to a ½ Load per month (6 Loads per year). The larger the volume of your commitment, the larger your discount will be for the merchandise.
We will take your commitment along with others to negotiate the best purchase pricing and more importantly the access to the top priority of the merchandise. We will bring this value to you at the lowest possible fair price. Our Goal is to control 300 Loads per month. The current price with no commitment is approx $7,500, not including freight. Every load is different. Each load is represented to contain from $60,000 to $70,000 in last retail value. Pallet quantities vary pending the sizes of the products onboard. The waste factor is represented to be 20%. In reality, we are finding a lower percentage of waste.
Your commitment will secure Top Priority with AML, for access to this high value product line. The market price will be determined by our negotiations.
Level A 10 Truckloads per Month Level D 6 Truckloads per Year
Level B 5 Truckloads per Month
Level C 1-3 Truckloads per Month
Deposits: As in most cases, distressed merchandise purchases plus the freight, are payable prior to shipping the load. AML pays in advance as well. A commitment for any level listed above, may require a deposit equal to the cost of one load plus freight.
We welcome your input at all Levels. We have found, through the years, that verbal commitments with honorable business people, outweigh written contracts. AML has bought and sold $Millions in distressed merchandise through simple verbal arrangements. Call us Today! 251.970.1100
Priority will be given in order to your response to this offer. Test Loads are available if you would like to order now, prior to discounting.
We appreciate your business!
AML Home of Old Fashioned Customer Service.
American Merchandise Liquidators, Inc. www.amlinc.com
Is it possible to make money when you spend it? Purchasing decisions are tough! They always have been and they always will be. But somebody has to make those decisions. Somebody has to take the time to evaluate an offer to see if it holds the sort of profitability that will sustain and advance the company.
There is an old saying, “You don’t make money when you sell merchandise, you make money when you buy it.” If the purchased merchandise was bought at a price point that is too high, you will either sit on it forever, or you will have to lower your price to a level that will make somebody want to buy it. Sometimes this means selling merchandise at cost or even below.
It stands to reason that you want to make sure you buy merchandise at the best possible price up front! One of the sure fire ways to do this is to find a good liquidation company that has a diverse mix of products that are being sold well below the wholesale value. It’s really quite interesting the way this works actually. Customer returns general merchandise, for example, is not sold based on a percentage “off” of wholesale it is sold based on a percentage “of” wholesale. Conceivably, you could purchase quality general merchandise returns for 15% – 20% of the wholesale value (15-20 cents on the wholesale dollar)! Contrast this with a purchase made from typical general merchandise wholesale company where the price point paid is 4-5 times higher!
Like I said, you make your money when you buy, not when you sell the products. If you buy the merchandise at the lowest possible price point, the profit margins grow exponentially!
Here’s a good question to ask when you are talking to a liquidator, “Do you have a manifest for the load you are telling me about?” A manifest is going to give you a complete itemized list of the items you are getting on your load. There is a margin of error with all manifests, but it definitely improves your chances of maximizing your profits! Bulk truckloads, loads sold without a manifest, are also a good way to make money, but manifested truckloads by far are the best way to go! Most legitimate liquidation companies can send a manifest to you via email as a pdf file or excel file.
The idea of buying and selling salvage and liquidated products through an Off-Price store has been around for quite a number of years now. Over the last decade, literally hundreds of small “mom and pop” as well as larger chain stores have cropped up, specializing in overstocks, shelf-pulls, customer returns and clearance products. Liquidation has become a multi-billion dollar business. What’s interesting is that as large as this Industry has become, there are still a lot of things that people do not understand, that if they did, they could vastly increase their bottom line!
One area that is often overlooked is the opportunities that come up multiple times each year to purchase what is known as “off-season” merchandise. Here’s a perfect example of “off-season” merchandise. Every year in January, there are tons and tons of items available that are specific to the Christmas Season. For example, every January artificial Christmas Trees are available by the truckload for a very small percentage of their original retail price. Many Off-Price stores put their nose up at these loads because it is after all January! What they don’t seem to understand is the tremendous value that these loads hold for those that are forward thinking enough to recognize it.
Retailers are extremely motivated to get rid of this kind of inventory, so much so that they are willing to part with it for much less than they would normally sell it for as salvage. The way to capitalize on this is to purchase a load and then hold on to it until the last quarter of the year comes around. If the Off-Price dealer is able to do this, they will make an extremely nice profit at the end of the year. Sometimes buying salvage goods comes down to seeing each acquisition as an opportunity buy!
If the Off-Price dealer is able to buy outdoor furniture loads during the Fall and Winter months, the same scenario could unfold. When the Summer months roll around again, you will be sitting on a gold mine!
So, the next time you are offered a load of Christmas Trees in the middle of July, don’t be too quick turn your nose up at it. Think about the delayed gratification aspect of forging ahead with a purchase. A lot of money saved now will mean a lot of money earned later!
Have you ever noticed that whatever City you live in, you are usually only a short drive away from a Home Improvement store? Do you know why this is? These Huge Home Improvement stores know that now more than ever, people are working on their homes and landscaping on their own. The cost of contracting out repairs and improvements has gone through the roof – which is why it should probably be repaired too! People have learned how to find educational videos online that show step by step how to do the most common household repairs. They then make a mad dash to the local Home Improvement store to get the supplies and/or tools that they need to get the job done.
Obviously, people are much more cost conscious than they have ever been before. Many off-price retail stores have discovered this trend and are now making sure their stores are stocked with all kinds of hand tools, pneumatic (air) tools and power tools, as well as things like compressors and generators, so that they can offer the exact same types of products as the big box retail Home Improvement stores, but at a fraction of the cost! One important thing to remember about Liquidated Tools and Equipment is that not all loads are the same. Some of the loads that are being peddled these days are full of cheap import tools that are essentially good for one repair job and that’s it! Dealing with a company such as AML Inc. can usually net a much better load. Why? Because a company such as AML Inc. typically will have exclusive contracts in place with major Tool & Equipment Retail & Online stores that are full of Nationally recognized name brands as well as high end private label goods – again, sold for just a very small percentage of the wholesale value.
Getting the RIGHT Tool and Equipment load into your store will add up to huge profits at the register. Your customer base will enjoy purchasing merchandise from you, especially since they are able to get it for far below the retail price!
Before you spend your money on an average Tool & Equipment load, make a few phone calls and do your research. A few extra minutes on the front end could equate to a lot of money at the end of the sales day!
The Liquidation industry is an extremely dynamic and unique industry – holding literally Millions of dollars in profit for those who are savvy enough to see it! Have you ever wondered what happens to all of that merchandise that gets returned to your local Superstore? There was a time when all of that merchandise was destroyed – what a waste! Statistically, only about 15% – 25% of the items that customers return to a store are actually defective. That leaves a huge amount of product that still has high market value that, if purchased at the right price, can fetch a nice profit for somebody with an entrepreneurial spirit!
The key to success, should a person decide to venture into this exciting arena, is to learn how to see value where others only see trash. Let me ask you a question – would you be willing to buy a Keurig Coffee maker that retails for $169.00 for $30 if the only thing wrong with it was the packaging? Sure you would! That’s what makes this industry so exciting! Customers interested in bargain shopping are going to find your store, and they will buy lots of things that they would ordinarily not purchase simply because the PRICE IS RIGHT!
Buying and selling Salvage, Liquidated goods such as Customer Returns, Clearance Merchandise, Overstocks and Shelf-pulls requires a keen eye and special attention if maximum profits are going to be realized. You have to be able to see the value in an item where others only see trash. Sometimes products can be repurposed and sold at some kind of price point – that’s certainly better than throwing the item away!
The best Liquidators to work with are those that hold contracts or exclusive agreements with retail chains, online stores or wholesale companies. Not all Liquidators are the same! For every 50 “Liquidation Companies” you can find on the Internet, probably 1 or two are actually legitimate. Make sure you ask whether or not you can visit their wholesale warehouse. The legitimate Liquidators will gladly receive you, while the brokers will make every excuse in the book as to why “now is not a good time.” A true Liquidator will be able to show you everything from Lots to Pallets and Truckloads of merchandise.
You can make a great living or even supplement income by getting involved in the Liquidation Business. American Merchandise Liquidators, Inc. would be happy to show you how!
With such rapid changes in demand in today’s market, it’s important to have variety in your resale store. We know that it’s often hard to find pallets that have variety but share somewhat of a theme. That’s why our latest loads are so remarkable.
Our Bed, Bath, Housewares, etc., pallets are clean, quality loads that contain housewares, furniture, home décor, kitchen and bath, and more! From vacuums to silverware sets, these loads are perfect for a store centered around home goods and appliances. This variety will make your store a one-stop shop for people moving or settling into a new home or apartment.
These loads would also be great for adding variety to your retail store online. What better way to become the hottest power seller than to sell anything and everything that your customers want?
And just when you think it can’t get any better, these loads come at a GREAT price. Contact one of our sales representatives at 251-970-1100 to learn more about getting one of these great loads in your store.
American Merchandise Liquidators (AML) is trusted by companies worldwide to move millions of dollars in distressed merchandise. Founded in 1992, AML is a wholesale supplier of customer returns, closeouts and overstock merchandise from leading department stores, manufacturers, importers and wholesalers. AML specializes in buying and selling general merchandise and clothing in truckload and pallet quantities, at below-wholesale prices, and has one of the largest inventories in the business. Learn more at www.amlinc.com.
ANYONE CAN EARN MONEY ONLINE WITH AML
“We make it easy!”
REFERRAL PROGRAM AND COMPENSATION PLAN
AML has more high quality merchandise available than ever before. With this large inventory to distribute, we are reaching out for referrals to locate new customers.
If you know any person or company in the business of buying and retailing distressed merchandise, you could make money while helping your friends!
Simply contact us by email or phone to pass along the name and address of your referral. We will list your name beside their name. If they are not already a customer of AML, and they become a new customer, you will get a check for your efforts. Pending the level of their purchases, your check will vary from a minimum of $50 to $500 or more.
First Time Buyers, Be your own Referral! Examine our product offerings and your purchases will be discounted accordingly. We offer “Exclusively,” the best Money Making Truckloads and Pallets of Mixed General Merchandise in the business! Simply fill out the contact form on this page and one of our representatives will give you a call to help get you started. You’ll be happy you did.
AML has a 22 year track record of satisfying our customers with value and service.
Email your referrals to:
Travis @amlinc.com (or use the contact form on this page).
If you are considering starting a liquidation business, the first thing that you are going to need is a source for merchandise. This is the point where you are looking for the most “bang” for your dollar! Another way to put this is, you need to find a way to make your initial investment work the hardest for you – you need “Concentrated Value!”
For example, American Merchandise Liquidators is currently offering some of the best General Merchandise Loads in the industry starting at $4,995.00. What do you get for this investment? You would get 24 packed pallets of General Merchandise that has a total Wholesale value of approximately $31,000 – $33,000 – That’s Approximately $60,000 in retail value for an initial investment of $4,995! That’s Concentrated Value! We are squeezing (concentrating) a ton of value onto one truckload of merchandise that should have everything your customers are looking for!
Not all Liquidators are the same, so be sure to ask lots of questions before you spend your hard earned money! Do your research! Check out the company you are considering with the BBB to make sure they have a good rating. Most importantly, ask the company if you can come and visit their facility. If they are unwilling or unable to accommodate you, they are probably not the company you want to work with.