Running Your Own Retail Liquidation
There are many reasons for a retail store to use professional retail liquidators instead of doing it themselves. Let’s examine the reasons that a retail store wants to do their own sale.
1. The primary reason is about not paying fees. The fees are not cheap in managing a retail liquidation. However, many store owners fail to realize that retail liquidators will put more money in the owner’s pocket even after fees. The rate of return will be higher and expenses less because the sale will be significantly shorter.
Running a retail liquidation sale is a totally different concept than running a profitable store. Some owners think that by watching another store or two go out of business, they know what to do. I have done dozens of store closing sales. While some things are the same, every liquidation sale has challenges.
2. Some retail owners want to control everything. They do not want advice even though their experience is limited in running a liquidation sale. Their ego gets in the way of making more money. The best CEO of a large company that I worked for in the past would surround himself with
people smarter than him. Ego puts nothing in your bank account, but will do plenty to take money away.
Here are the reasons for a retail liquidation company to manage your sale.
1. They have plenty of experience in dealing with all aspects of a sale. If something goes wrong, they have backup plans to get you back in track. They know how to keep the momentum going. In addition, a store closing sale company knows when additional discounts are needed and how much. I have been doing this since 2003 and learn more from every sale.
2. Retail liquidators do not have an emotional interest in the store. Many owners have told me that the mental part may be the toughest part during a sale. I have done many sales with owners of 30-55 years in the business. It’s hard to make rational decisions during an emotional time, especially with customers telling you how much they will miss you.
3. Selling fixtures can be tough for many retail owners. They either want way too much or give them away. They do not have a process in place and can double sell the same fixture. Retail Liquidators know the range fixtures sell for and will get the most for your money. In many cases,
they have connections or a list of potential buyers of your fixtures to market to.
4. It is hard work managing a sale. I spend 6 days a week at the store and every day online to get even more sales for the owner. It is a full-time job in doing all the things for a great sale.
5. I want to make sure the store owner gets the most revenue from the sale and rewarded for all the years of serving the community. When you work 1-2 months in a store, you get to know a lot about the owner and his family. I am rewarded financially for running a sale, there is something that matters more.The biggest satisfaction that I get from a sale is when a family member of the owner thanks me for managing the sale. When a family member can see it, I know that I have done my job well.
So, when should an owner run their own sale? If the inventory is less than $100,000 at cost an owner wants to change the strategy of the retail liquidation consultant. Otherwise, selecting one of the many retail liquidators to manage your sale is the way to go.