While it may be easy to find closeouts at cheap, discounted, wholesale prices, it's not always so easy to know when you are paying more for a bargain than you have to.
If you have no idea of what the genuine wholesale price of a product should be, you will have no way of knowing if you are being overcharged or not.
It is easy for an experienced liquidations seller to take advantage of your lack of knowledge to inflate the prices on goods by selling them for a higher cost than what their genuine wholesale price should be.
Some companies will act like a street vendor when offering you prices after sizing up the way you look.
Some shady wholesalers will price their goods after getting a feel for your experience in purchasing.
It is not at all uncommon to find identical products sold at hugely diverse prices, sometimes even twice as much.
You don't have to pay astronomical sums for the same closeout products.
A more experienced buyer may be getting the same product for half the price you are paying.
Such man-made fluctuations in pricing guarantee huge profit margins for some frugal minded people and needless spending for others.
At times, even liquidation and wholesale prices become inflated because of the chain of supply that they follow.
At each stage of a product's being sold, the seller makes his cut.
This is all passed down to you as the final purchaser or down to your customers if you intend to re-sell the products.
Many wholesalers have bought their goods from other wholesalers and so on and so forth.
Find a wholesaler who is not a middleman and can offer greater discounts.
In order to get closeouts at their genuine wholesale price you must take the time to do your price research.
Know everything about your product before you buy it.
If it is imported, find out who imports it.
Know the transportation costs that have gone into getting your product from its source all the way to the supplier you intend to buy from.
You just may find a better supplier or a way to buy closer to the source, and cut out all those passed down costs that add onto the genuine wholesale price.
Remember that just because your supplier says that you are getting the best available deal doesn't mean you are actually getting the best available deal.
It's his job to make you believe you are getting a great bargain and it's your job to make sure it really is a great bargain.
Your knowledge of the product and liquidation pricing will put you in a better position to negotiate price with your supplier (if negotiation is even available - true wholesalers offer the best price up front!) It's easy to make a green buyer pay twice as much for a product but the same is not true for a buyer who knows exactly how much the product is worth.
If you can get better prices higher up the food chain, do so by all means.
Why buy a product from a distributor if you have access to a direct wholesaler or direct closeout specialist who will help you save money? Getting liquidations at their genuine wholesale price means that you can also sell them to your customers at lower prices which is good business all around.
Obtaining the lowest price will allow you to sell more competitively, which will highly improve sales and increase profits.