Professional TipDon't overlook the many sources of distressed goods that may be right in your own area. I hear people say that they're trying to make sight-unseen deals thousands of miles away and getting very frustrated. Yet they are missing opportunities close by because they have either closed their mind to dealing in goods other than what they think are profitable, or they aren't aware of the tremendous profits in surplus goods other than closeouts. I recently received a letter from a reader. He wrote, "The information is absolutely priceless and comprehensive. You have changed this company's direction and changed a few individuals lives." It made me feel good that I was able to change the direction they were focused in, thus opening up new avenues of profit for them. I congratulate them for being open-minded enough to see the "Hidden Wealth" in surplus. A Few Things to Consider 1. Are the goods you are considering brokering priced low enough for you to resell? If you're selling to another dealer, that dealer has to make a profit and resell to someone that needs to make a profit as well. Are you sure you have enough profit margin in the goods to do this? People often tell me that they can find surplus goods but they can't find buyers for them. This indicates to me that there is not enough margin of profit for everyone to benefit. 2. Are the goods you are trying to broker items that people want to invest in at this time? Trying to sell snow shovels in April could be hard. Buyers want to put their cash reserves into items that will sell quickly, not things they have to hold on to for six months in order to get their cash out of the deal. 3. Are the goods really surplus, or are they just cheap imported goods that are available to anyone? Much of the goods advertised in "closeout-type" publications are no bargain for anyone needing to resell to a dealer. If you have a store that is selling direct to end users, than it's a different story; there may be some good deals for you in that case. 4. Nearly every book that has been published about making money with surplus goods (there haven't been many and I've read most of them) have said that almost anyone can get rich dealing in closeout goods. This is true if you find the direct source of the goods. People new in this business often think that the only way to get surplus is through a middleman. If you intend to deal with a middleman and market to another dealer, be sure you know values well or you'll end up getting frustrated trying to remarket overpriced goods. There are ways to broker and do very well. But you need to know how to do it and what kinds of goods to work with. 5. Is the company you're working with reputable? Do they really have the goods they say they do? Are they in the condition they say they are? Will they really ship them when they get paid for them? Should you have a written contract with them? How about with the buyer? Have you learned the business well enough to get started right away without subjecting yourself to possible lawsuits? These and many other questions should be answered before getting too deeply involved in the industry. There is no doubt that there is a tremendous amount of money to be made with surplus goods. But there can be an awful lot of frustration and lots of time and money wasted when you go about this the wrong way. Educate yourself before stepping off the deep end. Remember the old adage, "If you think education is expensive, try ignorance." Whatever way you choose, I wish you the best of luck. Henry Kulesza |
