I have been thinking of starting roaming retail sales where I would setup shop in hotel conference rooms for 6-8 hours in various cities. I would exclusively like to sell clothing from department stores like Macy’s and Dillards. I am only interested in higher-end name brands like ABS, Antonio Melani, Cremieux, Coach, Givenchy, Gianna Bini, Polo, Dansko, BCBG, Michael Kors, and others. From what I have read, liquidation clothing is in high demand and supplies can be limited. Before I start this business, I just want to make sure that I will be able to order inventory as needed. Of course, I will be a small fish, but I intend on growing. I do not want my success to be limited as far as inventory. Any suggestion would be helpful.
Answer: I call them “Liquidation Sales Events”, and yes they are profitable! I have helped dozens of people around the country get started. I, myself, have held liquidation sales events and I must tell you, people go nuts when there is a limited supply of time and clothing to purchase. All of the excitement results in large profits.
As far as your question about supply, don’t worry there will be enough shelf pull clothing available at any one time. The inventory will be the least of your worries as preparation for these type of sales is difficult; there are a lot of things to consider including:
Pricing the merchandise – Will you use a single price point or price each item individually?
Hours of operation – Will you create a frenzy by opening doors for a small period of time or run the sale for 8-10 hours?
Advertising – How will you get the word out? Will you utilize print media or create flyers for distribution?
Help during the sale – How many employees will you need for setup and at the time of sale? Could this be family members or friends? Liquidation sales events are usually flooded with people, and without help, customer will become frustrated and leave.
Dressing room – Will you offer a dressing room? A lot of customer will not purchase clothing if they cannot try it on first.
We have a section within our program, Liquidators Guide, where we talk specifically about liquidation sales events. We also interview an individual who has successfully held sales like this for several years…you should check it out. Good luck in your exciting endeavor!
Our 2015 Liquidators Guide chronicles 12 years of wholesale product sourcing experience and includes my personal black book of direct source contacts! As an industry expert, I'll share the success I've enjoyed along with the mistakes I've made buying and reselling liquidation merchandise.
If you are thinking about buying pallets of liquidation merchandise from a liquidator, broker, or direct from department stores, you need to check out The Liquidators Guide. In addition to our guide, you'll also get FREE access to our exclusive liquidation sourcing website filled with product sourcing audio and video content!