How to Broker distressed, liquidation, closeout or surplus
merchandise!

Brokering is connecting the buyer and seller together and collecting a
commission. You market to the same buyers as previously discussed
but you are selling somebody elses merchandise. The commission
you earn is determined by your markup on the merchandise. If a
product is selling below 15 percent of retail then you have a chance to
make money by selling it for 25 percent of retail.

DO not forget to account for shipping cost often this is actually more
than the cost of the load. In order to broker a load you may have to
brake it up between several small retailers and will have larger
shipping cost.
.
Even the large liquidation houses broker loads from each other this is
a normal part of the business. Rarely will a surplus dealer tell you he
does not have the product you want he will just get it from whoever
has it and
sell it to you.

Calling first to introduce yourself and faxing load offerings to each
store is still the best way to initial contact with the buyers. You may
also broker pallets to make it easier for the buyer in the beginning but
your profit margin will be very thin. Samples when available from your
supplier are not free and usually cost close to retail. It is better to use
pictures by email than samples.

Building a relationship with a particular supplier will be crucial to
getting started. Interview several prospective suppliers until you find
one you are comfortable with. Ask lots of questions let them know you
are new to the business. They will be instrumental in helping you fill
orders to your clients. Only deal with suppliers that have a written
policy to not market to your customers. In the end all you really have is
your customers this is the most secret information you have protect it.

Be sure to get a purchase order with every order this will eliminate
differences of opinion on what the order was when it arrives. Prepare
the client your buyer for the shock of what a surplus load looks like
when you open the doors to tractor trailer it is often not a pretty sight.
Each load has to be sifted thru carefully to determine the good
merchandise and the waste. You will mostly broker to larger clients
you are providing him a service by spending the time to research your
contacts and find the merchandise he is looking for. So charge
accordingly for the service you are providing and any risk you may be
assuming. Such as what if when
the buyer receives the load he rejects it.

Provide no guarantee explain ahead of time this is a surplus load with
no guarantees. After all that is why you are able to buy it so cheap.

Many times it will take as much as 3 months before a store owner feels
confident enough to place an order with you. It is crucial to be
persistent but not pushy let the merchandise sell itself.

2008-03-02 @15:58:02 we received this response:

Very informative, and really useful information for someone who is
trying to start out.

Thank you for your comments.