The Surplus Industry Is Huge But Don’t Be Fooled
by Janiece V. Smith

© Janiece V Smith - All Rights Reserved

http://www.expressprofitsonline.com

Each and every day there are millions and millions of dollars of surplus inventory that goes on the market. Most of this inventory is never, and will never be, seen by the general public. But why?

It’s actually pretty simple. Big corporations would rather not “advertise” that they have products they did not sell or that were returned for one reason or another. They want to move this surplus as discretely as possible. And they don’t like to make a lot of noise doing so.

Most companies don’t want to move these products through their normal sales channel because they want distributors to buy their new items. For example, Nike sells shoes in malls across the United States and has thousands of distributors who buy these shoes (from Nike) at wholesale prices.

If Nike suddenly called all their distributors and told them they had six million dollars in unsold inventory, which they could get for 50% below wholesale, they’d surely lose sales on the new shoes. Many of these distributors would spend their extra cash on the products that will make a better return. Clearly, the distributor will make more money buying shoes at 50% below wholesale than they will buying them at the regular wholesale price.

You can access the same unsold inventory that a company’s own distributors often cannot. You just need to know how. Sometimes, even if you do get access, companies will already have a channel in place for moving this surplus inventory. However, just because they have one channel doesn’t mean you can never gain access. Your task is to find out what that channel is and talk with them to see whether they have any surplus inventory available.

Understand that these companies get many calls every week from people trying to get a “good deal.” For example, if you were calling Sony hoping you could just buy a big screen TV for cheap, think again. You’d be out of luck. They know who is serious and who isn’t. It would be nice if they would drop ship and send us all big beautiful catalogs with products in full color for 50% below wholesale. But, if you think that you can order one item at a time and have them drop shipped, just forget it.

As you know, if they did that no one would make any money. With the multitude of people trying to find products to sell on eBay every day, you have to be savvy about what these companies want. If you are not, you surely will not find or get access to nearly as many products. Nonetheless, you could still make a good living on what you do find and you will find plenty of it.

Remember this: If you don’t succeed with them at first, you will sooner or later. Manufacturers have to protect themselves and they do this by picking and choosing who they think will help them move inventory, rather than by whom they think needs money to pay their bills.

This is a business. Success in business takes time. You will have plenty of good deals that will keep you going and will keep the money flowing. Just don’t give up; you will prevail!

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Janiece Smith is the author of Internet’s top-selling eBook teaching everyday people how to make their own small fortune selling on eBay®.

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