Starting a liquidation pallets business is rather simple. Besides basic research on purchasing pallets, there’s little you’re required to do.
But making a profit off of this business model is a completely different story.
If you’ve been cutting it close when recovering your investments into liquidation pallets, then we’ve got some help for you!
In this article, we’ll tell you the top 5 tips that can push your income into profits.
Excited to earn back your investments and more?
Read on.
1. Do Your Homework
Moving beyond the typical research everyone else conducts, try learning the below-given things to gain the edge over your competitors. Here are some aspects you might not have thought of studying but working on which will give you that extra profit on your ledger.
Know Who You’re Buying From
Learn all you can about the supplier of the liquidation pallets from whatever source possible. This will help you understand whether the supplier has good deals for you or if they’re only off-loading damaged products to buyers.
Take a look at customer reviews, ask your network of resellers, read testimonials, get in touch with customer service, etc.
Study the Contract Conditions
Not many resellers read the fine print when getting into a contract with a supplier. Make sure you know what responsibilities you share with your supplier.
Read the Manifest
Want to score the best liquidation pallet deals?
Learn how to read the manifest and grading system.
Grading is often used to identify the condition of the products on a pallet, while the manifest is a list of contents in the pallet.
These are some of the best ways to learn more about pallet contents and are perfect if you’re new to the business. You know exactly what you’re buying and the condition of what you’re buying.
Pallet Selection
Select products that you can sell easily locally. Not all items in your pallet will be in optimum condition to sell online. In such a case, you can still arrange to sell repaired products locally to someone who needs them for a lower price.
When it comes to pallets, it is also wiser to go with what you know. Products you know a little about are easier to sell even when damaged or broken. Products you’re clueless about will be harder to sell and make any profit from.
Lastly, pick products that are easy to ship. The products shouldn’t be too heavy or fragile as they’ll cost you the trouble and your customers the price hike to transport.
Altogether, studying these should help you be a wise buyer and hence lay the groundwork for a successful and profitable resale.
2. Refurbish the Products
The biggest drawback you’ll be facing when running a liquidation pallet business is the unpredictability of the product quality. But this can also be the biggest benefit for your business.
Because instead of selling your inventory as it is, you can now find ways to refurbish it for the top dollar. From repairing and accessorizing to bundling and repackaging, there are plenty of ways to improve the resale value of your inventory.
If your product is a mobile phone unit with a missing adapter, you could replace the missing accessory to complete the piece. If your item is broken yet fixable, you can tweak it to ensure it delivers its functions. And if your products fit into a category, you can try to bundle them into a subscription box.
You can even try this with a couple of Lowes liquidation pallets for sale. Buy a truckload of such pallets and then repackage some of the items to resell them as part of a DIY home improvement kit.
All these strategies should help you resell your inventory for a good listing price no matter what condition they’re in.
3. Prepare an Organization Strategy
The efficiency of the organization is the key aspect that separates a professional and unprofessional pallet flipping business. An organized inventory will help you with the other tips on this list too.
The first aspect of your operations that needs organization is the inventory. From receiving and sorting to storing and shipping it out, you’ll need to formulate a plan you and your employees can follow.
The other aspect is labeling and tracking the inventory to ensure operations run smoothly all the time.
4. Consider All the Costs
With a business such as reselling liquidation pallets, calculating risks comes in handy. Here, you can do it by understanding the profit margin behind every pallet before making a purchase.
Below are some of the things to include in your calculation:
- Purchasing price of the pallets
- The retail price of products
- Shipping costs
- Storage and maintenance costs
- Repair and repackaging costs
- Listing price
- Inventory replenishment costs
And any extra fees.
Learning how to do a cost analysis early on is a useful lesson. It helps you understand the price you should buy pallets at to ensure you can sell the items at a good profit.
To try a different approach, you could also utilize unique pricing strategies. Since there’s little you can do in terms of tweaking the products or their manufacturing, pricing is all you have control over. You can play with psychological pricing, use keystone pricing, or try competitive pricing strategies.
5. Sell on Multiple Platforms
It can be too overwhelming to list your items on multiple reselling platforms. Especially in the beginning. But as you get used to the ropes of it, the practice can pay off well.
Instead of having all your exposure from one E-commerce platform, you’ll be able to showcase your inventory to as many customers as possible.
Then again, platform selection is just as important too. Not every item can be sold online and not every platform is suitable for any type of product. That’s where you can use all that research you’ve done to develop a fact-based reselling strategy for maximizing profits.
Final Thoughts
Those are all the essential tips to keep in mind to get more profits from your liquidation pallet business. We hope these tips help you gain the competitive edge you need to rule the world of pallet flipping.
Have a great time flipping your next liquidation pallet!
