I’m asked this question several times per week. It’s a normal “getting into the liquidation business” question. You might have asked it before, but if not, you have more than likely thought about it. It comes in many forms, but it always boils down to some version of:
"What truck should I purchase to make the most money?”
I chuckle when I hear it, as I understand where it comes from. I have been in the same shoes asking the same question: “What is the secret truck or source that would reap a large profit for me?”
Honestly, there is not one truck or a “secret source” that is tremendously better than all the others. If there were, that would be the only truckload I would sell to anyone for the simple reason that the more profit I help my customers make, the more I will make. Social media ensures that any “one truck” that is under-priced is very quickly found and updated to be priced in line with supply and demand. Social media also makes sure that any “secret source” is quickly turned into the flavor of the day and everybody knows about it.
The question I’m really hearing is, “How do I give my business the best chance of success in this industry?”
Here is my answer:
It really depends on you. Your business is going to rise and fall based upon your work ethic and capabilities.
- Can you network?
- Can you recognize a deal when you see it?
- How creative are you when you see a deal or when you are dealt a bad load?
- Can you market your merchandise and yourself?
- What kind of buyer base have you built?
- Do you over-leverage your business and consistently take high-risk bets?
- How are you going to sell the merchandise?
- What is your local competition doing?
- Do you deliver constant value to your customers?
- Can your customers trust you?
- Can you change, adapt, and constantly reinvent your business? There is a market for all of the merchandise on every truckload available for purchase. Some people love furniture and make a profit, while others will not touch furniture. The same can be said about clothing, electronics, bulk items, etc. Why is this? It is not the truckload that makes it good or bad--it is the business that buys the truckload. You are it! I am always willing to discuss this question with someone to help them find an ideal truckload, but ultimately, I don’t have the answer. I never do. My goal in the conversation is to cause someone to think critically about their skill sets and what they can use to their advantage. Once they know that, I can help guide them to a truck that is better for their intended purposes.
I know that is not the secret you were hoping to find an answer to, but it is the truth. The secret is that there is no secret! The hard truth is that there are “once-in-a-lifetime trucks”, but those are sucked up higher in the supply chain. These profit-gushing truckloads never make it into the lower levels of the marketplace that most of us participate in. Those getting these truckloads move massive volume-hundreds or even thousands of trucks every month. The truckloads are given to these people as a favor. These favors are for regularly accepting the multiple, undesirable loads/programs that the retailer has had trouble moving. The retailer knew that the buyer lost money on those loads and that they understood they would lose money on the load going into it. The massive profits made from these “once-in-a-lifetime trucks” help to smooth over the negative impact of the undesirable loads.
The secret is really the same as any other business-it involves the bullet-pointed questions above. If you can do those things, you can position your company to be successful in this industry. If I can get the new liquidation entrepreneur to recognize these facts early, it can help ensure that he/she is focused on the correct habits to generate success.
With all of this said, you still need to keep looking. Diversify your sources of product and always keep an eye out for the next deal. Work hard and maybe you can find your secret source. Someone WILL win the lottery, Despite the chance being very low, someone will win. Maybe that could be you! Happy searching!
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Building Relationships This business can be very profitable, but it does not come without risks.
As with any start-up business, it takes experience, testing, and adaptation to create success. I hope I have helped prepare you for the beginning stages of your upcoming business venture, and perhaps interested you in developing a relationship with me. If you have additional questions, comments, or just want to chat about the industry, please do not hesitate to reach out to me through our contact page. I am here to help you!
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