Store Closing Liquidation Sale: How To Put More Money In Your Pocket
I have been doing liquidation sales over 15 years. Between my experience of doing over 90 sales and checking out owners doing their own sale have seen plenty of missed opportunities. Some of these opportunities are small while others have cost thousands for just one mistake. Here are 10 common mistakes made by retail store owners conducting a going out of business / liquidation sale.
1. Not Creating a Shopping Frenzy- This is vital to get customers to buy more at the beginning and most profitable part of your sale. You should be close at least one day with a sign on your door when you reopened. Sending out email or letters to your list or sending a postcard or placing an ad in the newspaper will help create a shopping frenzy.
2. Pricing- Many companies start at 20% off, but I have about 90% of the merchandise at 13% off. The other 10% is between 22-50% off. Any ads or postcards will say discounts up to 50% off. The pricing normally changes every 5-14 days during the sale. If you keep the discount too long, people will stop coming back.
3. Department Maintenance- Store closing does not mean let the store conditions get bad. The store should be straighten daily. If you have outs, spread out the other merchandise to make it look full. Pull from the bottom to the top to keep merchandise at eye level.
4. Selling Fixtures- Need to have a list and price before you start the sale. Only one person should handle fixture sales and have them picked up ASAP. Otherwise, they will get double sold which cost one store $3,000 on a forklift. There are always people who take forever to pick up their fixtures.
5. Advertising- Besides a shopping frenzy in the beginning, need some additional advertising to let customers know of price drops. I used weekly newspaper / shopper ads, Craigslist and text message marketing.
6. Signage- Should have a banner that people see you are going out of business. Once discounts reach 33% off, I have a banner showing the current discount.
7. Making Rational Decisions- This is one that took me a while to realize how important it is. It is an emotional time and hard to make the best decisions. Many owners are trying to squeeze every penny which ironically costs them hundreds or thousands of dollars.
8. Keeping Employees for the Sale- Many employees will leave unless you give them a reason to stay. Give them a bonus if they stay to the end and based it on days worked. Otherwise, some may call in a lot during the sale.
9. Having a Plan when things go Wrong- Even in the best sales, things can go wrong. I always have at least two backup plans to take care of this issue. Not having a plan could be a costly mistake and hurt the sale.
10. Not Hiring a Professional Liquidation Company- I understand it is costly to hire a professional to manage your sale. How hard can it be to run a liquidation sale? My best clients are ones who own multiple stores and realize they will net more with me running the sale than having one of their employees or themselves do it.
If you have $150,000 or more, a retail liquidation company will put more money in your pocket and reduce stress. If you start a going out of business sale and it does poorly, no reputable retail liquidation company will take over your sale.
Store Closing Liquidation Sale-More Resources
Most stores have a discount of 20% off or more to start the sale. I price about 90% of the merchandise to start the sale with a discount of 13% off. My best sale did over $150,000 with this discount resulting in $10,500 additional dollars in their bank account by using 13% off instead of …
Here are common myths I hear from retail store owners and liquidation firms. I can save a lot of money doing the sale myself. Perhaps, but unlikely. Even with fees, hiring a retail liquidation consultant will put more money in your pocket, save you time and definitely reduce the stress of conducting a going out …
Discover more at: http://liquidateyourstore.com/ Retail liquidation companies Discover retail liquidation companies, which starts the sale at 13% compared to 20% for most other liquidation companies. For most stores, this results in thousands more in your pocket the first week. Find out why we are the right choice to learn more about retail liquidation companies.
We can Provide a Range of Solutions from a Do-It-Yourself Kit to a Retail Liquidation Consultant On-Site Throughout Your Sale…