Here is an interesting subject- Many sought after products you find on a closeout level have reselling restrictions. Think about it, you are a large retail chain store or even a manufacturer; would you want you products being sold below market value? Would you want the possibility of someone buying your product and then returning it to your store for return credit? No that I have confused some let me explain……You the buyer of closeout merchandise sells an item to your customer at a reduced price. Lets assume you sell your customer a DVD player at an incredible price because there was some box or packaging damage. Maybe your cost for the DVD player was $19 and you sold it to your client at $39. Your customer gets a great deal right? Everyones happy until your client gets home and realizes that it does not have all the features he really wants so he is looking at the damaged box and he clearly realizes that it was originally sold through Walmart. Your customer then wonders is maybe he could return it back to Walmart for full retail refund or even store credit? Your client at that point is now making a profit on his investment.
This happens and it is very hard to control. This type of occurrence can land you the closeout buyer in deep legal trouble because stores and manufacturers do not want their products being sold and returned for credit.
Make sure when buying closeout merchandise that you fully understand the reselling restrictions to avoid costly court proceedings. Some requirements might be total de-labelment, which is simply removing any trace of store or brand name wording. Removing original price labels is a “No Brainer” especially since you will be reselling below original retail in most cases. Apparel manufactures may ask that you remove brand tags and or place a black line through brand tags. I have also heard of a requirement of slicing through brand tags. This will tell the store in the event an item is taken back for return credit or exchange that this item is not eligible for return.
Some stores will dictate or ask that you not sell within a 50-100 mile radius of their store. Some manufacturers or catalog companies will demand that you do not sell through online auctions like Ebay. Even more strict requirements will say that a product or load must be resold out of the United States only.
Please review all requirements before you buy, if you need further assistance please contact me. I am available at anytime for further thoughts, help and assistance.
