I received an email from a reader who questions information found within another liquidation guide about the subject of pallet and truckload brokering; I thought it would be best to address his questions here, in the form of a blog post.
I found another book on Surplus Merchandise (that is how I found you, doing more research). In this other book, he goes through a script when selling merchandise. When the buyer asks if he owns the property, his response is “We are the sellers of the Merchandise”. He states that, this is a way to keep the buyer from contacting the seller. What are your thoughts?
Hello, I’m glad you are doing research because, as they say, knowledge is power. I addition to knowledge, researching can help save thousands of dollars and countless hours of heartache.
I take a different approach to the issue of broker transparency. I’m upfront with potential buyers letting them know they are purchasing a brokered deal taking advantage of my long-searched contacts. It costs money to locate and qualify sources, so why not utilize a Brokers expertise in this area? Brokers also offer assistance with freight shipping in most cases; these points alone are worth a markup or commission.
People respect honesty and when a Broker honestly represents both a seller (product source) and buyer (Brokers client), a sale is often made.
Also, I am looking to Broker, not sell on ebay/amazon. The other gentlemen says when I get a P.O. I can then find a partner/or get a loan to purchase the merchandise. Is there a way I can just tell the seller/buyer I am the broker and have the buyer pay me, I take out my profit and pay the seller? Sorry if this is to long of a question.
You can go that route, but I would use the buyers’ funds to purchase from the inventory source. This is how most brokered transactions work. By the time a broker secure funding from an investment partner or secures a loan, chances are the broker’s’ buyer would have lost interest and moved on.
Thanks for any advice you can give me. Actually, one last question, does your book deal with Brokering? Or is it just purchasing merchandise to sell on ebay/amazon. If yes, I will be purchasing your book. Thanks again.
Yes, The Liquidators Guide deals with Brokering, but on a more simplistic level. All of the fluff was avoided when I wrote the content on brokering. All of the information was taken from my experience. Good luck to you, and keep researching!
Our 2020 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