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Understanding The “Off-Season” Aspect of the “Off-Price” World

christmas-treeThe 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!

 

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