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Pros And Cons Of Purchasing Wholesale Designer Clothing From Liquidation Companies

By Expert Author: Edmund Brunetti

Buying wholesale designer clothing from liquidation companies has emerged as a viable way to cut costs and excavate higher profits. During times of economic depression and general malaise, more and more retailers are taking this route. The trend of picking up liquidated products has caught on very fast, since the margin of profit is higher out here. At the same time, it is a reliable opportunity for small-scale businesses to pose some challenge to their larger counterparts.

So, why exactly should you purchase clothing from wholesale liquidation companies?

Here are the major merits:

1. To cut down on costs: Businesses which direly need to cut down on their investment find it a plausible way to do so without compromising with their general business structure. Admittedly, designer clothing when purchased directly through conventional wholesalers can be pocket-pinching. But the same clothes when sold through liquidation venues cost lesser. This is owing to the fact that they went unsold at certain retail stores and now need to be disposed off quickly.

2. To make more profits: If costs can be pruned, then the businesses can make more profits. So, there is a big incentive in going after liquidated wholesale designer clothing.

3. To get hand on more variety: Another much-talked about advantage of buying clothing from liquidation companies is that the buyer always gets greater variety. At liquidation companies, the overruns come from different retail stores or factories. So, a lot of variety can be found under a single roof when it comes to designs, labels, colors and even sizes.

4. To get ahead of competitors: It is a smart and non-risky ploy of getting ahead of competitors. Price-war is unavoidable in today’s cut-throat world. When retailers opt to buy their usual lots of merchandise from liquidation companies, then they certainly get a price advantage. This puts them in better stead when it comes to dictating the market.

5. Perfect for those who run small boutiques: Those who run very small boutiques and have a small market can do remarkably well by opting to buy wholesale designer clothing from liquidation companies. The boutique owners are usually pressed for money. They do not have enough capital to indulge in heavy marketing. So, the best way for them to draw buyers is to sell at a lower price. They are able to sell at a lower price if they can purchase the whole lot in liquidated form. At the same time, those who sell only through sites like Amazon or eBay also stand to gain by buying from a wholesaler of liquidated clothing.

At the same time, there are a couple of cons of buying through liquidation:

1. Re-ticketing: A fraction of merchandise may be re-ticketed since its original label may go missing. But it is not a worrying factor as long as the wholesaler is trustworthy and reputable.

2. Distressed merchandise: Liquidated stuffs have already spent several weeks at retail stores. They may get slightly ruffled, creased or distressed if they have been tried by several people at trial rooms. Again, this is a minor demerit and does not usually pose any problem.

For more resources please check Foxliquidation, a wholseasle designer clothing liquidation company.

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