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If you are a business owner, or just a thrifty shopper, then perhaps you know about liquidation sales. You know they provide opportunities for huge savings. Moreover, you understand that you can find just about anything at a liquidation sale, depending on the company and what they have for sale.
However, you can also end up paying more than the actual retail value for a product at a liquidation sale if you’re not careful. Just like with anything, there are ways to capitalize on liquidation sales. Follow these tips to learn how to ensure that you get the most out of them.
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What Is a Liquidation Sale?
Liquidation sales are typically held by companies that are going out of business. They have these sales to try to generate revenue to pay off debts before they close down. And they sell items at discounts that increase with time in order to attract buyers.
The only goal of the sale is to get revenue to pay off creditors and shareholders. Because of this factor, you might also be able to purchase equipment that the business used for operational purposes. What’s more, most businesses tend to use high-quality equipment. This means you could get some high-quality secondhand products at steep discounts.
Timing Is Key
Just like with so many other things in life, getting the most out of a liquidation sale is all about timing. These sales typically last between eight and ten weeks. So when you see that a liquidation sale has just begun or is about to begin, you don’t have to rush. If you do, you could actually end up overpaying for some items.
During the first few weeks of the sale, the only items that will have sizeable discounts are the normally slow-selling items. Remember, the goal of this sale is to cash out everything that the company has in order to pay its debts. They’re not out to save you money or gain customer loyalty. In those first two or three weeks of the sale, hot-ticket items may actually cost more than their retail value.
The best time to go to a liquidation sale is four to six weeks after it begins. During this time, the items that did not sell so well in the first few weeks can drop dramatically in price.
However, you don’t want to wait until the last couple of weeks of the liquidation sale to show up. If you do that, you run the risk that all of the “good stuff” will already be sold. If you see an item that you’re interested in which isn’t selling well, then you could save a lot of money by waiting until the last minute. That is about the only way that you can wait until the end of the sale and be pretty sure to come out with what you want.
When you attend a liquidation sale, you need to be sharp. Don’t get swept up in the magic of a “world of endless savings.” Not everything in this land is as it looks. Moreover, if you purchase it, you’re getting it as-is. What’s more, most liquidation sales are final. Before you buy an item, inspect it closely to make sure that it is still in mint condition.
Also, be on the lookout for items that the company wouldn’t normally be selling, such as its own operational equipment and property. You could get anything from their used office equipment all the way up to their company vehicles at a liquidation sale.
Watch for Liquidation Sales Near You
So keep an eye out for liquidation sales. Look through your classifieds for current and upcoming sales. Time your shopping trips, inspect products closely, and look for equipment the company itself used and is selling. Remember these things, and you will be a pro at capitalizing on liquidation sales in no time.