What is distressed merchandise?
Salvage, Surplus, Phantom, Overstocks, Closeouts, obsoletes, less than perfect (LTP) irregulars, seconds, class B, Buy-Backs, Shelf-Pulls, Customer Returns, Bankruptcies, Insurance Salvage and more.
Customer Returns-, People buy millions of dollars of merchandise daily across the United States. They may return the merchandise for many reasons. One fine example of this is one of my employees has just went to the wholesale club and purchased a fax machine. This was not the machine I told her to purchase. However when I came into the office they had the machine opened and operational. I directed them to re-package the machine and take it back for the kind we actually needed. Mom may not like the color, Junior did not like the sound or dad already has one. Keep in mind, the major retailer is in the business of mass merchandising and not in the business of re-packaging merchandise. To keep profits flowing, it is much easier for them to send this to the CRC ( customer return center) to liquidate.
This is where we step in. We will usually contract with the retailer, catalog company or manufacturer to buy all merchandise at pennies to the actual dollar to relieve them of their losses. Then of course we re-sell to retailers, pawn shops, auctioneers, jobbers, wholesalers, boutiques, exporters and many others.
Many companies will over estimate the buying season and over purchase.
Many manufacturers had an order which was cancelled.
Many mega retailers may pull shelf items which are not moving fast enough.
Many companies may go bankrupt.
Things become obsolete.
Things have been mis-placed in massive warehouse inventories.
Things get mis-manufactured.
Things are not approved by quality control.
Whatever the case, Your gain. The economy may be beautiful up on Wall Street, but for average John Doe, he is looking for bargains.
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