Locating, purchasing (and, of course, eventually reselling) closeout wholesale merchandise can be a very lucrative business, however the success of an individual or business in doing so is largely dependent on how well the profit margins are maximized. No matter what type of goods you are selling, price negotiations can make the difference between a successful closeout venture and one that ends with your bottom line in the red. There is no reason to shy away from negotiating, as most sellers will expect it and be willing to produce some concessions, especially when you are able to offer something in return.
For example, the promise of repeat sales from someone who is looking for a long term business relationship can be an incentive for a supplier to reduce their price for you. Naturally, if you have used the supplier in the past and already have such a relationship, make sure to continue to (politely) push for any possible discounts. Furthermore, be sure to seek discounts for large volume purchases, as the savings should grow when you buy in bulk.
It’s also important to shop around if possible and if you find a better deal (with proven similar quality merchandise) let your supplier know as he may be willing to lower the price in order to keep your business. It may also be possible to commit to a longer term agreement of repeat purchases with the supplier in order to ensure both parties are satisfied with the end result of the negotiation.
It’s also important to never accept an initial quote as the final, since most suppliers consider this to actually be the starting point and expect to lower their prices somewhat. Furthermore, if you’re new to the closeout industry, and negotiating in general, just remember that practice makes perfect and you’re bound to become a better negotiator over time.
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