How to Buy Surplus

Entrepreneurs can use surplus goods for inventory and office supplies.

Entrepreneurs often search for surplus goods to resell or to use in their businesses. You can find surplus goods from a variety of manufacturing and retail companies, liquidators and the government. Many surplus goods are simply overstocks that did not sell in a traditional retail setting due to economic or other reasons. Specialty items such as holiday decor and themed gifts often sell as surplus goods from manufacturers and retailers who simply cannot stock the items out of season. A savvy entrepreneur can use the purchase of surplus goods to both start and augment his business and increase his profit margin.

Things You'll Need

• Computer
• Internet access
• Financing
• Phone

Instructions

1. Identify the types of products you want to purchase and what entities sell the products. For example, you can find vehicles, furniture and office equipment from the government, while liquidators and small businesses are likely to have clothes and household goods.

2. Locate contact formation for the companies using the Internet or phone resources. You can also contact other business owners for recommendations on reputable companies in the liquidation business.

3. Request a cost sheet and order requirement information from each entity. Some firms may require that you purchase a large quantity of product, such as a pallet, each time you order, while others may allow smaller purchases.

4. Evaluate the cost and quantities required by each entity and determine the price per item. If you are planning to resell the items as inventory, choose the entity that gives you the lowest cost per item because it will provide you with the highest profit margin when you resell the products.

5. Place the order as required by the surplus entity. Some may allow online purchases while others require paper orders. Ask the company how they will deliver the products. If you are required to buy a pallet of goods, make sure that the delivery company will unload the pallet off the truck and transport it into your home or office, if you do not have the equipment to offload the goods.

Tips & Warnings

• If you cannot afford to purchase large quantities of product, contact locally owned businesses and ask if they have extra product that they want to sell. You can likely negotiate a lower volume requirement and still obtain a good price per item.

• Review Internet sites such as craigslist, eBay and Overstock, among others, for listings of surplus items.

• Research any company that offers the products you want to buy. Internet frauds exist in the surplus industry, so check for complaints against the company both online and with the Better Business Bureau before you place an order.

References

• Skip McGrath: Buying Liquidation, Surplus and Closeout Merchandise To Sell on eBay
• USA.gov: Government Supplies & Equipment for Sale