Tuesday, June 22, 2004

The Thrill of the Hunt, Buying Liquidation

Purchasing liquidation loads from suppliers to resell definitely has an element of gambling involved. Successful Professional gamblers know the odds and will try to make intelligent decisions, but any gambler will tell you luck is involved, which is a big part of the thrill to gambling you just don't know until the cards are flipped or the dice thrown. The first step is to contact the closeout or liquidation department at any large company. Once you are set up on their approved bidder list you will be either faxed or emailed a load or list of products they are looking to liquidate.In most cases the companies use a Blind Bid process (this simply means no one knows what anyone else is bidding). My technique for evening the odds is to try and never bid more than my worst case scenario if all the products were damaged or not sell-able. I will research the list via search engines and also Ebay, checking completed sales history etc. If you win a bid you arrange shipment to your address. When a shipment is delivered I know within 15 minutes if the dealer just threw me an Ace to make 21 or I rolled a 7 on the craps table. I have averaged about 75% of the loads purchased to be profitable. It sure is exciting to open that first load and have it be a winner. But you take some hits along the way.

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