Calculating Waste

Waste:  The items that are less desirable.

Reasons for Waste:  Torn, broken, missing pieces, soiled, difficult to resale.

Waste Factor: This is an estimated amount of the load that must be repaired or thrown out.  This estimate is determined by information provided by previous buyers of similar loads.

As one experienced liquidator put it, "The first load is the worst load of all, I use the parts and pieces form the first load to make the loads thereafter the most profitable."  Save those spare parts!

A waste factor that is estimated to be 10%, means that you can expect to discard 10% of the total load.

Remember:  This is distressed merchandise, you are not buying brand new goods at a brand new - full wholesale price.  You are purchasing a return salvage load at a percentage of wholesale cost.  There will be some distress.