AML Blog: Latest Liquidation News & Deals

Why “Warehouse Scratch & Dent” Merchandise is a smart investment

Our industry is replete with defining terminology that is supposed to make it easier for people in the off-price / liquidation business to understand and purchase merchandise for resell. Probably the more common terms that you will hear include “Clearance” or “Shelf-Pulls”.  But there is another term that people seem to bypass when they hear it, and the sad thing is, they are potentially missing out on a real money-maker! The term I am alluding to is “Warehouse Scratch & Dent”. 

This category of merchandise holds huge profit potential because, in most cases, the merchandise has never even been in a retail store. Somewhere along the way, while still in the warehouse, somebody backed a forklift into a pallet, or accidentally knocked a pallet over. When this happens, the warehouse will go through the merchandise and throw away the items that are deemed too damaged to resell. Everything else is re-palletized and sold off as “Warehouse Scratch & Dent”.  For the most part, these items are usually still in perfect or near perfect condition, however, the box may have sustained damage to the point that a normal retailer would not want to put this item on their shelf. But, if you are an off-price retail store, this could be the goldmine you have been looking for.

Sure, you pay a little more for these truckloads, but you also throw a lot less merchandise away on average. Because the loads are easier to process, you don’t have to spend as much money on labor to get it into your store. Here’s the best part! You can usually still sell this in your store for approximately half of the original retail value and essentially double your investment!

If you can find a Warehouse Scratch & Dent truckload or even a mix of Warehouse Scratch & Dent and Shelf-Pulls, you should give it serious consideration! 

 

Liquidation Company AML / Celebrating 25th Year

AML has been a leading provider of liquidation Merchandise to resellers for 25 years now. American Merchandise Liquidators, Inc.

We supply most markets in the business of reselling distressed merchandise. In order that our soon-to-be valued customers can find us online we have written the following key word paragraph to explain what exactly it is that we do.

 

We offer items to resell  ,  Items to resell online. Start a new business with AML.  

We contract with major dot com and internet sales companies to purchase and relocate unwanted stocks of customer returns and closeouts. We buy and sell merchandise by the truckload and by the pallet. Brand Name Liquidations too. Discount Truckloads and Discount Pallets. Manifested pallets, Manifested Truckloads. Truckloads from major dot com companies. Customer returns and closeouts from dot com company. Liquidator. We are Liquidators of going out of business sales. We supply wholesale buyers with liquidation items. We have truckloads and pallets for sale. We have occasional live auctions for dealers. Dealer Auctions. We auction Merchandise By The Pallet. Start your own liquidation business with AML. We provide the best in liquidation merchandise.  All at pennies on the dollar. We buy and sell merchandise from many categories to include Tools, Equipment, Kitchen ware, Home Décor, Home ware, Toy, Electronics, Clothing, hardware, sundry items, We sell to Flea Markets, Discount Stores, Online Resellers, Yard sellers, Exporters, anyone who buys and sells. We work with our vendors to locate merchandise outside of their current marketing areas. We offer Financing on liquidation merchandise through 3rd party suppliers.

AML is listed with BBB with an A+ rating. BBB A+ . Customer service has always been important to the employees of AML.  

 

See our products page at http://www.amlinc.com

 

See an Online List of available Truckloads at http://www.amlinc.com/hotlist/

Truckload pallets liquidation

Register for notifications about our dealer auction at www.palletbidlive.com

 

Bid or Buy Now Pallets at www.palletbid.com

How to see past the “bad” merchandise on a Liquidation Truckload?

Over the past 25+ years, we have seen just about every type of load imaginable. We have seen tool truckloads, general merchandise truckloads, domestics truckloads and more! Perhaps more importantly than that, we have seen all of these liquidation truckloads in varying conditions. Not all liquidation truckloads are the same. For example, we carry manifested general merchandise truckloads that contain a lot of clearance merchandise along with shelf-pulls, overstocks and returns. A truckload like this typically has a much smaller percentage of damage and throwaway than a truckload that is entirely made up of customer returns.

There is a common thread with all liquidation truckloads though. All liquidation truckloads have a mystery value to them. Some truckloads are considered to be “better” than others. But the truth is, if you understand liquidation, you can make money in most cases even with a “bad” truckload. 

The key is learning how to see past the “bad” or undesirable merchandise. It may be that you have a higher percentage of damage or throwaway, or perhaps you received more seasonal merchandise than you expected. You can usually still make money with the truckload if you maintain the proper focus.

Seasonal merchandise can always be put aside until that season rolls around again. Doing this allows you to be one of the first stores in your area to feature in-season products. Yes, this does mean you may have to hold on to it for a period of time, but the ability to make money still exists. Some off-priced retailers even offer “off-season” products at a discount. A Christmas sale in August for example…. you would be surprised to see how many people will take advantage of opportunity buys!

Typically, a liquidation truckload could have up to 25% in damage or throwaway. Let’s say it is 25%….. consider these numbers:

A load with $65,000 in retail value would cost you around $7,150. With an average freight rate of $1,500, your landed cost of goods would be $8,650.00.

If 25% of your load was “bad” – You would still have $48,750 in retail to sell ($65,000 minus $16,250).

If you sold the “good” merchandise at 1/2 price, you would collect $24,375 for a load that you only have $8,650 in! That’s a profit of $15,725 – nearly 65% gross margin!

It’s easy to see past the “bad” merchandise when you are staring at margins like this! 

While every load is different, experience has shown these calculations to be an honest assessment of what you could experience when buying and selling liquidated merchandise!

 

 

Are Non-Manifested truckloads the right loads for me?

Distraction is the nemesis of focus! It’s easy to get distracted when trying to determine the proper load type for your business. Some say “Manifested loads are the only way to go.” While others contend non-manifested loads make more sense. The key word here is “focus” – you must focus on your demographic, on your store location, the type of business model you are using, etc.  Non-manifested truckloads make a lot of sense to those customers who are servicing clientele that are solely concerned with getting the best price. A non-manifested truckload will typically cost less as far as a price-per-piece is concerned, while manifested truckloads may cost a bit more. The advantage to a manifested load is clear though – you get to see what you are buying before the load ships. 

What we have found over the years is that most of our customers buy a little bit of both. A mixed category general merchandise truckload that is non-manifested can yield a lot of bang for the buck! Normally, the percentage of damage or throwaway on a load like this is between 15% and 25%.

What type of truckload would work best for you? Focus on the involvement you will have once your load arrives in your warehouse. Manifests certainly do make processing easier! Most salvage buyers notice a lack of consistency in the area of pricing when they are processing a non-manifested load. Granted, you will pay more for a manifested load, but you will be able process the load quickly while maintaining consistency with your pricing structure.

Don’t get distracted by what everybody else is telling you about your product purchases. Focus on your customer base, on your location, on your business model – and then make the best decision you can for your business!

Multi-Category MANIFESTED GM Truckloads – Better Than Ever!

If you are in the market for a truckload of mixed general merchandise, we may have found the perfect truckload! We are currently getting manifested truckloads from a major retail chain that are among the best loads we have ever seen! Loads typically contain a mix of shelf-pulls, clearance as well as returns. The customer cost on these is currently set at 11¢ on the retail dollar. Truckloads ship out of Fort Wayne Indiana and are ready to ship now! Freight incentives are also available on these truckloads! Getting a manifest is as simple as requesting one. You can do that here.

Sporting Goods Liquidation Agreement Signed by AML

       AML is happy to announce the signing of a new agreement for sporting goods liquidation. This agreement is with one of America’s premiere online retailers of sporting goods and outdoor hunting and fishing equipment. Another major supplier to AML recently acquired this company. For more than 10 years AML has been the exclusive liquidator for the parent company. Due to the success we’ve experience in maintaining their liquidation program, it was obvious to them that AML should be in charge of the sporting goods liquidation program. Soon AML will be offering the new product line to our customers by the truckload and by the pallet. This opportunity will consist of hot resell items at a percentage of the wholesale value.

       AML will open this offer to select partners and customers. This will be an ideal product mix for independent sellers and marketers of discounted merchandise. Sellers such as discount stores and flea market vendors are encouraged to contact us about access to this opportunity.  

 

Sporting Goods Liquidation American Merchandise Liquidators, IncThe offerings could include items such as:

 

Ammo and Shooting:

Scopes, Gun Safes, Holsters, Night Vision, Self Defense and Security, Binoculars, Etc.

Hunting:

Accessories, Blinds, Archery, Boots, Knives, Food Processing, Hunting Dog Supplies, Outer wear, Night Vision, Rangefinders, Etc.    

Military Surplus:

Emergency Supplies, Military Jackets and Coats, Backpacks and Bags, Tactical Gear, Accessories, etc.

Fishing:

Rods, Reels, Lures, Tackle, Trolling Motors, Downriggers, Fish Finders, Marine Electronics, Etc.

Boating:

Boat Seats, Life Jackets, Trailer Accessories, Covers, Fuel Tanks, Etc.

 

Water Sports:

Canoes and Kayaks, Float Tubes, Ropes, Paddles, Knee Boards, Wake Boards, Etc.

Camping:

Tents, Sleeping Bags, Camp Kitchens Accessories, Flashlights, Lanterns, Cots and Air Beds, Camp Furniture, Etc.

Outdoor Recreation:

RV Accessories, ATV Accessories, Motorcycle Accessories, Snowmobile Accessories, Universal Truck Accessories, Etc.

 

To inquire about the availability of this product line please call our office or send an email. 

251.970.1100  

 

Live Dealer Auction for Wholesale Liquidation Merchandise

Gearing Up for Live Dealer Auctions

       For years many of our wholesale customers have asked why AML is not having live dealer auctions. It seems that they were traveling to far away areas to attend various dealer auctions in search of wholesale liquidation merchandise. Many believed the Gulf Coast area could use a quality dealer auction.  

       The management at AML began to think maybe it’s not a bad idea.  The diverse inventory that AML stocks in the Foley, AL warehouse, could offer an attractive variety to auction goers. AML decided to proceed with the idea. Inventory was shifted and room was made inside the warehouse to accommodate the crowd.     

       The market test began. Three live auctions were held in November and December of 2015. They were very successful sell outs. More than 300 pallets and lots were sold.

AML decided to move forward in 2016 with one live auction per month. It was decided that the dates would fall on the second Thursday of each month. Each auction will feature a minimum of 100 pallet / lots of assorted categories. Everything to be sold in bulk.

       AML has contracts with Tool & Equipment suppliers, as well as suppliers of General Merchandise. Huge volumes.  AML has already sold THOUSANDS of truckloads of assorted merchandise. AML stocks an average of 50 truckloads in Foley, AL. We also sell truckload volumes shipped direct to the customer.  

       If you are in the business of buying and reselling, if you have a store or sell online or at flea markets, you should visit one of these auctions. Bring your trucks and trailers. Enjoy the area while you are here. There are many attractions along the gulf coast. 

For more information please visit www.palletbidlive.com     

 

AML

 

 

Dealer Auction wholesale merchandise

Live dealer auction for wholesale liquidation merchandise

Rising Popularity of Liquidation Stores

      All companies that retail merchandise will generate unwanted inventory from time to time. This inventory is considered distressed and must be removed to make way for the newer incoming stock. American Merchandise Liquidators, Inc. is a liquidation company that buys this product for the purpose of reselling it into other markets. This surplus product is available to privately owned discount shops and warehouse stores at pennies on the dollar. This contributes to the rising popularity of liquidation stores.  

Pallet of General Merchandise Liquidation         In every town there is at least one storefront, offering merchandise at discounted prices. Much of the merchandise originated through a liquidator. Through the process of liquidation, store patrons are offered  lower prices on many of the items they need everyday. In this economy families have a need to find the lowest prices. Owners of liquidation stores are meeting this need with items from the following categories; Clothing, Shoes, Furniture, Housewares, Kitchenware, Tools, Toys, Camping Supplies, Auto Accessories, Gifts, Baby Items, Window treatments, Domestics, Food, etc.  

     Look for and visit these stores. You will likely be surprised at the value that waits inside.  If you are interested in starting your own store, we will be happy to assist you. We have worked with store owners for more than 20 years. We will gladly pass along some of our experiences to you. It may surprise you that a store can be started with a small inventory investment of $5,000. Ask us how!  Your success is our success. 

AML

 

How to Choose The Right Truckload of Customer Returns

AML HowtoChoosetheRightLoad

 

FREE Report 

Click to open this 4 page PDF

Learn 7 Questions that you should ask,  before buying a truckload of customer returns.

 

AML PDF Cover 7 Questions

Liquidation Merchandise Truckload Pallet

 

 

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  • preguntas o comentarios

 

Why Do Customer Returns Fly Off The Shelf?

       It seems that customer returns are flying off the shelf. Savvy shoppers

can’t get enough. Why would someone buy items that were once

returned? Where is the value?

 

      To qualify as a return, the item must first be sold.

If it was once sold, someone once had a desire for the item.

If there was once a desire, chances are the item will sell again,

if it’s in good condition.Fly Off Shelf

 

      To further make the item attractive to buyers it can be discounted.

The average cost of customer returns to the reseller is approximately

20-25% of the original cost.

 

      At this rate there is room for a healthy profit while offering
value to retail shoppers.

 

      Assorted mixed returns are attractive to resell investors and to discount minded shoppers.

Returned items were once prized purchases of highly experienced buyers within large retail

corporations. Their jobs were dependant upon making wise purchasing decisions. 

 

        

AML

Customer Returns, How to estimate profits before Buying a Truckload

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

Income Projections

(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.  

 

AML

251.970.1100

 

Not Just a Truckload but, “The Right Truckload for You!

         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