Wholesale Industry


June 30th, 2008

Shopping with the wife this weekend we found ourselves at Walmart pushing a cart aisle by aisle. While many people are opposed to Walmart’s market share I do find it fascinating that in the face of roughly forty years Walmart has become the worlds largest retailer. I highly recommend reading Sam Walton’s book, “Made in America” as the story of Walmart growth is enough to inspire any entrepreneur.

As we were walking through Walmart shopping for necessities I noticed the tremendous amount of “Private Label” products offered. From Dog food to soda pop the Walmart name is branded on several items in fact through further research I found out that approximately 40% of all items sold in Walmart are private labeled.

What is private labeling?

Private labeling is simply the act of contracting with a manufacturing company to produce your own line of products with your chosen name brand. There are literally hundreds of manufacturers who are willing to produce a single product or complete product line thereby enhancing your business image and strengthening your relationship with your customer base.

Why would you want to private label?

Simply put, There’s no better way to support your store brand than to sell products bearing your store’s name. Your brand can create recognition in your geographic market whether your plans are to market locally, regionally, or nationwide there is a private label solution available.

Some examples of the more popular products which are private labeled include lotions, skin care products, cosmetics, perfumes, jewelry, apparel, home décor, snack foods, candy and coffee.

Here are a few examples of private label manufacturers who deal in small quantities:

Grafton Cosmetics – offers dedicated sales advisors who will walk you through the very necessary steps to guarantee that the development of your brand meets your business goals and your marketing strategies. Grafton Cosmetics offers a total private label solution from graphic label design to product manufacturing. Based in Florida - toll free 800-662-5387

Mister Snacks - offers dozens of snack lines for small to large retail stores, regional distributors, large supermarket chains, cruise lines, colleges, promotional campaigns and everything you can imagine. Let their creative artists help you design the look you want or you can provide your own logo. Based in New York 716-691-1500

Style Source Inc - Private label apparel manufacturer offering dresses, skirts, tanks, wraps, sarongs, pet apparel, maternity apparel and dozens more. Able to provide specific size ratios, labeling, packaging and many other value added services. Based out of North Carolina 910-399-2288

Autocrat - In business since 1895 retailers can develop a partnership with Autocrat’s private label coffee program.. Autocrat offers selling support that is committed to championing your growing business with package design, brochure assistance and growth incentives. Based in Rhode Island 800-288-6272

Nutricap Labs Offers private label solutions for the supplement / vitamin industry which will offer the ability for your business to build brand loyalty among your customers. Superior products at the most competitive prices offering cutting edge label printing and packaging design services. Based in New York 800-494-6154

Companies listed above are a sampling of manufacturers who are ready to produce your products under your business name.

For more information the Wholesale private label industry offers an annual trade show which is coming up August 16-18th in Chicago. More information can be found at the PLMA website or by calling PLMA direct at PLMA 212-972-3131

Private Label Fun Fact - Walmart’s, “Ol Roy” dry dog food is the Nations second best selling behind Purina. “Ol Roy” is exclusively manufactured by Mars, Inc., owner of Pedigree, Sheba and Whiskas pet foods. Ok, maybe not necessarily fun…But interesting-

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June 22nd, 2008

If you have been following my posts here on the WholesaleU Blog and ToptTenWholesale you probably know by now that buying wholesale liquidation merchandise in the form of pallets and truckloads can be very profitable for your retail or auction business.  Buying liquidation merchandise is a great way to source top name brands from some of the largest Big Box retailers.

I want to address the issue of  “Brand Restriction Agreements” for end resellers that must be signed and adhered to prior to purchasing liquidation merchandise. If you are buying wholesale liquidation merchandise with the intent to profit from reselling then you are the “End Reseller”.

When purchasing wholesale liquidation merchandise direct from a department store or a contracted reclamation center you must make sure that you follow any reselling restrictions including brand protection instructions.

Why is this a big deal?

All written contract restrictions share one common theme that you must take very seriously….”End User Returns”.  Lets say you buy a pallet of DVD players and you are able to offer them to your customers at 50% off of original retail. Sounds like a great deal, huh? What happens when your customer buys a DVD player from you at a great price and then attempts to return it to the original store for full retail credit? The store will come back after you with fines and/or a lawsuit for breach of your reselling contract.

You must take all precautions to avoid this from happening. Delabaling and defacing merchandise will protect you as a reseller of liquidation merchandise. If you follow all of the original stores guidelines for reselling there should be very little if any problems with store level returns.

Make sure prior to buying that you carefully read all written requirements making sure that you can fully comply with reselling terms. You will be asked to sign a contract with your merchandise source before a pallet or truckload will be sold to you. This is one area which you should not take lightly.

Some retail stores will not allow you to resell liquidation merchandise within a a certain mile radius of an actual store. For example Kmart liquidation merchandise cannot be sold within a 50 mile radius of an actual store (Kmart). If you live within a large city this could pose a problem as most larger US cities do in fact have a Kmart or Super Kmart.

To give you better idea of what an agreement might look like I am going to list a few of the requirements for reselling liquidation merchandise purchased from the Target Corporation. Target is a large chain department store, which operates stores throughout the United States selling general merchandise, electronics, home decor, apparel, jewelry and in some states grocery items.

Delabeling and Defacing Agreement for Target Salvage Merchandise:

  • All warranty cards to be discarded and destroyed
  • If warranty is included with product information, the warranty section must be removed with exception of sewn in labels
  • All tags of clothing, both Target and licensed brands to be removed with exception of sewn in labels
  • Black out all sewn in labels
  • Discard all hang tags and tags
  • Remove all Target brand products from boxes and packaging from the Target box unless packaging is necessary for the product
  • Black out all UPC codes
  • Black out all reference to the Target name

You can see from just a few of the above requirements that there is work involved in reselling liquidation merchandise. Whether you buy direct from a liquidator or buy from the actual store you must follow all reselling requirements. Again, make sure you fully read and understand all reselling restrictions before buying a pallet or truckload of liquidation merchandise.

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May 27th, 2008

What are your payment options when purchasing wholesale and wholesale liquidation merchandise from a supplier, or should I say what are the payment requirements? Many on line vendors who distribute wholesale merchandise accept the traditional forms of payment including Visa, Mastercard, Discover and American Express. There are many companies that will also accept payment via Paypal, which is a way to electronically send money to an individual or company by way of an email address.

You may have run across some companies who list, “wire Transfer” as a payment method. In fact most companies who distribute wholesale liquidation pallet and truckloads require that your purchase be paid for with a bank initiated wire. A wire transfer is an almost instantaneous electronic transfer of funds from your bank account to the receivers bank account. You must have the payee’s full business name, bank name, routing and account number to send a wire. A wire transfer is issued from just about any bank and takes a few minutes to complete while in the teller line. Your bank will charge a fee to process a wire transfer. Fees will vary, but average around $15-$30 for an outgoing transfer.

Although wires are immediate, it can take 12 to 24 hours for payment to arrive in the payee’s account.

In my experience it is an industry standard when purchasing large quantities of liquidated merchandise to use a wire transfer. When you are buying liquidated inventory direct from “Big Box” retailers..this is your only option for payment.

Wire Transfers are final, there is no recourse. You can charge back a credit card purchase, but a wire is unstoppable. Once funds hit your payee’s account…it is a done deal. Make sure you fully understand what you are buying and who you are buying merchandise from before you initiate a wire transfer.

Before you make any large purchases using a wire transfer make sure you have investigated the company you are about to buy from. Check references and ask as many questions as you can before making an investment.

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May 22nd, 2008

Are you Investing in the stock market or buying a new home? Chances are you will use a Broker to complete either one of the transactions. Maybe your scheduling a much needed vacation or getting a new auto insurance policy…you might use the services of a Broker here as well.

Being a professional Broker is a well-respected career unless, of course, your talking about liquidation Brokers. Why does the term, “Liquidation Broker” leave such a sour taste in the mouths of so many? I have been on both sides of the transaction when it comes to brokering liquidation merchandise. I have acted as and facilitated hundreds of brokered wholesale purchases and prior to becoming a Broker myself; I purchased pallets and truckloads from Brokers.

A wholesale liquidation Broker locates merchandise for sale and then actively looks for a buyer.

A broker makes a profit in one of two ways:

  • Broker finds 100 Cell Phones for $10 each and agrees with seller to a 5% selling commission. The Broker then advertises the cell phones, completes the sale and the seller receives proceeds. The seller then would issue a check to the Broker for 100 x $10 = $1,000 x 5% = $50
  • The Broker finds another 100 Cell Phones for $10 each, but this time the seller will not offer a commission. The Broker will then advertise the cell phones at $13 each, adding his markup/commission of the “front end” of the transaction. Assuming in this scenario the phones sell for $1,300 the Broker would then pay the seller $1,000 and arrange delivery of the phones. Here the Broker has made $300


The second example represents how most brokered transactions are set up. Be cautious when purchasing from a Liquidation Broker:

  • Brokers cannot accurately describe the merchandise they are selling because it is not in their possession
  • Brokers tend to offer “Inflated” claims about the quality/condition of pallets and truckloads of liquidation merchandise they are representing
  • Brokers typically set their own merchandise “markup” and if too high this will decrease your ability to profit from your wholesale purchase. In each transaction you really do not know how much markup or commission you are paying to the broker
  • Brokers tend to be very responsive with purchase inquiries, however once a purchase is made customer service usually becomes non-existent
  • Very few Brokers work for repeat business

The above points represent my personal opinion based upon years of experience in the liquidation industry. As earlier stated, I have purchased pallets and truckloads of wholesale closeout merchandise and have witnessed first hand how a purchase can be grossly misrepresented through a brokered transaction.

If you are new to purchasing liquidation merchandise it is best to inspect the actual merchandise before you make an investment. There are plenty of Liquidators who maintain actual warehouses full of merchandise. You might have to research your particular State and plan a road trip visiting a few companies, but in the end the effort and time invested could save your pocket book tremendously.


What is your experience working with Liquidation Brokers? Share with our community your story…

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May 10th, 2008

Is there any good news in $4.00 per gallon gasoline, higher food prices and rising unemployment among free-spending teens?

Yes! Bargain Stores, Second-Hand Clothing Outlets, Off-Price Discount Stores and even … gasp … sewing and make-your-own Bling advice, targeted to teens, are now considered v. cool.

Tween-Teen belt-tightening is unmistakable: Retailers who target teens – like American Eagle, Tween Brands, Inc. and its Limited Too — have seen up to four consecutive months of sales declines (says UBS-International Council of Shopping Centers). Fewer teens remain in the part-time workforce over the past 14 months, squeezing out C-note Coach wristlet handbags and $80 jeans from Abercrombie & Fitch and pre-distressed surfer hoodies with brand new Brand Hollister price tags. Even Teen Food Staples – pizza, potato chips – cost more of youths’ dwindling discretionary dollars.

Opportunity knocks for off-price and bargain apparel traders!!! Now it’s cool to be frugal, including:

    • Get ready for another Grunge Fest? Maybe not. Economists state the current spending slump is the worst since the early 1990s … and it slumps all the way through the family, as budget-conscious parents cut unlimited text-message services, allowances and frivolous shopping.The previous big 1990s slump birthed the Grunge Look – torn clothing, flannel shirts, ripped stockings and that Je ne sais quoi touch of Gothica. Even with a sinking economy (teen hiring dropped 13% in the early 1990s vs. a 5% hiring slump this past year), no one thinks fashion will go Grunge during this cycle. Keep stocking that economical Bling: DIY beads, rhinestones; Metallic-thread shoulder wraps and scarves; Oversized handbags that double as beach totes and book bags; Off-price jewelry and accessories.
  • Buffalo Exchange, a chain of second-hand clothing stores based in Tucson Arizona that operates throughout the west and central California, says business is surging. Because teens can trade in jeans and apparel at Buffalo, shoppers are still buying top brands like Banana Republic and Juicy Couture. The brand-name threads are simply “recycled” and cost a fraction of regular price at Buffalo X.
  • Off-pricing and low-pricing still works. Another tween favorite, Aeropostale, sells jeans to teens for 30% less than look-alikes at Abercrombie & Fitch … and is thriving during this downturn. Teens are re-branding their shopping hangouts from higher-priced Hollister to lower-priced Target; and they’re shifting from pricey Pacific Sunwear of CA demo stores to thriftier knock-offs at H&M and Steve & Barry’s.

  • Even if the prices aren’t bargain basement, a “thrift-store ambience” keeps frugal Teens loyal. Or, so say trend experts who look at Urban Outfitters and Anthropologie brands, which are staying afloat in the economic storm when they only look like thrift stores.
  • For anyone who thought free-spending Teens would never, ever cut up credit cards, pinch dollars till George yelps or turn to sewing machines, get this: the teen-targeted spin-off of women’s Elle Magazine (called Ellegirl.com) launched videos titled, “Self-Made Girl.” It’s all about making clothes, crafting accessories like a prom clutch bag, and altering what’s already in the closet to look more stylish or fit better.

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April 25th, 2008

Mother’s Day 2008 is two weeks away: day of last-minute flowers, candy and Mom Bling jewelry.

Dollar Stores and merchandise resellers already took shipment of their Mother’s Day gift inventory. Online search advertisers – Keyworded Mother’s Day; Mom’s Day; Jewelry for Mom; Flowers for Mom – are just launching their mid-May holiday Mom-marketing campaigns.

Here are some online and in-store merchandising/display tips:

Cross-Reference Mom Stuff. It is good enuf for specialty retailers, like Jo-Ann Fabrics; Cook Books headlined in Barnes & Noble or Borders emailings; and local Scrapbooking and Crafts groups featured on Meet-Up, Gather and other social link-up sites. Then, it is good enuf for Dollar Stores and general merchandise retailers to copy, too.

  • Put themed Mother’s Day displays, banners and signs over categories of merchandise: Crafts and Handicraft Items; Scrapbooks and Miniatures; Glue Guns and Glitters; Remaindered Cook Books; Specialty Cookware (cake decorating utensils; piping bags; nonpareils and silver “Jimmies”); Party Favors, Paperware, Festive Holiday Cupcake Liners and Cake Molds.
  • Post See Also :: Mom Also Likes cross-reference signage and web links to: Beach Totes, Flip Flops, Sun Parasols and Beach Reading Paperback Books. To Grapevine Wreaths, Wicker Baskets and Artificial Flower aisles. And to In-Home Spa Products such as Body Wash, Bubble Bath, Scrubs, Moisturizers, Nature Sprays, Manicure Sets, Nail Polishes, Nail Transfers or Charms, Candles and Incense, and Personal Care Products.

Leave a Breadcrumb Trail to Mom Gifts. Whether you are looking to pull online clicks to a web site or eyeballs to a brick-and-mortar display, make a trail to the Mom Merchandise easy to follow.

· Use the same icon, colors, posters and headlines for Mother’s Day Gift Suggestions … whatever the category or aisle. (See above.)

· Then “silo” on the web site, or stock on the shelves, all Mom-targeted gift items. Count on serendipity: Searchers and shoppers may have an idea of what they want to buy for Mom; but seeing other suggested gift items nearby may help them refine their gift. It also helps cross-sell and up-sell higher revenue sales … like personalized, homemade gift baskets.

Make Mom a Headliner. All the Mother’s Day-themed greeting cards, helium party balloons, singing eCards, party banners, gift wrapping and flowers (fresh and fake) rotate to the front of the inventory, or top of the web landing page. And help out The Indecisive Shopper: If you sell Gift Cards, offer Mother’s Day themed or wrapped Gift Cards to give Mom freedom of choice.

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April 2nd, 2008

So, a few months ago, I promised Shawn Saba from US Style, Inc. that we would consider letting him write a guest post here and sharing his knowledge with all our readers. I never got around to posting it and he called me today saying I’d better put this up before he and Sam came down to San Diego and kick my butt back to Connecticut. Just kidding…I think I can take them anyways so their threats were falling on deaf ears ;) But seriously, ApparelUS.com is one of the leading online resources for great deals on wholesale fashion and we welcome the knowledge of experts like Shawn any day. Shawn, I should have gotten this up back in Feb. but thanks for your work.

Shawn writes:

Every four years we add one extra day in the month of February in order to
re-synchronize our calendar with the seasons. This year, 2008, is a leap
year, which makes it the perfect opportunity to re-synchronize your clothing
collection with current fashion sense. Because fashions are sometimes as
fickle as the changing weather patterns, it‚s important to update your
clothing inventory periodically. There‚s no better or more economical way to
do that than by shopping wholesale online.


Wholesale clothing shopping online allows you to shop for and buy the
hottest new fashion designs at a fraction of their retail price. Shopping at
online wholesalers cuts out the middlemen, which allows you can spend as
little as possible. The less you pay wholesale, the more you profit in the
end. Another great thing about wholesale clothing shopping is that the
fashions are constantly being updated, so you can always choose from the
most contemporary styles.

When you purchase wholesale clothing, you can afford to completely redo your
clothing collection to fit with the modern fashion landscape. Many of the
newest fashion trends can be found at Apparelus.com, the best source for
wholesale clothing and accessories on the Internet. They offer their
customers a wide range of top-quality clothing and accessories at steeply
discounted prices. With exclusive contracts from many of the hottest
designers and manufacturers in the market, Apparelus.com always has the best
wholesale prices.

Apparelus.com has thousands of different clothing pieces you can choose
from. Their departments include tops, pants, dresses, skirts, jackets and
more. They even have hundreds of accessories like shoes, handbags,
sunglasses, belts and jewelry. No matter what style of clothing or
accessories you‚re after, you‚ll probably find it for pennies on the dollar
in their extensive collection. You‚ll be amazed to see that the unit prices
for most of their clothing items are just several dollars when they could
easily be sold for 5 times more. So, visit Apparelus.com to take advantage
of this once in a leap year opportunity to do yourself a big favor and give
your clothing collection a total overhaul. Your bottom line will thank you.

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February 13th, 2008

This Spring fashionistas from all over will be following the rainbow by looking to the crayon box for inspiration. This season’s runways were awash in bright, bold colors, a stark contrast from last season’s macabre obsession with all things dark and Gothic. This season, expect to see fashion mavens donning such cheery hues as deep hibiscus red, vermilion orange, sunflower yellow, tropical green, cobalt blue and vibrant violet.

Another blossoming trend this season is wearing large, graphic floral prints with everything from roses and pansies to retro-style daisies and everything in between. For those who are not feeling the large bold florals, mid-size and more delicate summery patterns are also a hit, as are any soft and delicate feminine accents like sheer ribbons and bows.

Retro styles from the 1970s have also come back full throttle, and this can be seen in everything from bold, geometric patterns to off-the-shoulder tops, bell bottoms, and even groovy platforms and leisure suits. Finding these and other styles can get pricey when shopping through most retailers, but that does not have to be the case.


Most of the trends showcased on last month’s runways can be found at ApparelShowroom.com, your premier source for wholesale women’s and junior miss apparel. They specialize in off price and high quality red tag clothing offering the lowest prices for the best quality on the market. Because their company is located in fashionable Los Angeles, Ca, they are constantly adding new merchandise to their inventory from hundreds of neighboring manufacturers and importers, and it’s always deeply discounted to ensure the greatest profits.

Apparel Showroom has a wide array of wholesale women’s clothing, including tops, dresses, skirts, pants, active wear, and even accessories. My favorite section is the page featuring discount wholesale dresses. This page showcases a wide selection of sultry styles, including some of the retro patterns mentioned before. Whether you’re looking for cool and casual or a style fit for a night on the town, Apparel Showroom will be sure to satisfy. They have a large assortment of the ever popular halter dress, svelte dresses with spaghetti straps, and even off-the-shoulder fashions. Check out Apparel Showroom today to spring into the sexy styles of the season. You won’t regret it.

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January 14th, 2008

As you may or may not be aware, Valentine’s Day is a mere calendar month away from today. It’s time to roll out the champagne, laced hearts and velvety chocolate! If you have little ones at home this may mean going out in search of Hannah Montana or High School Musical Valentine’s cards and those candy hearts with corny messages of amor sprawled across them. Or, if you’re like me and other Martha Stewart aficionados, you know that this is a very opportune time to get crafty!

Making your own Valentine’s cards and gifts is a breeze to do. Plus it’s a great creative outlet and has the added benefit of good ‘ole fashioned r & r. Not to mention that you’ll save some green in the process. (Score!) If you have the time (and patience) to make your own creations, my best advice is to purchase wholesale craft supplies from an authorized dealer. Popular Valentine’s materials include fabrics embossed with floral patterns, elegant embellished laces, crimson silks or velvets in various shades of red, and anything that shimmers. Nothing says “I love you” like a whole lot of sparkle! Sequins also work well, and you can never go wrong with pink. Silk flowers—roses and baby breath in particular—are also crowd pleasers. You can easily find wholesalers who will sell these products to you, even if you are purchasing for private use.


You don’t have to be a creative genius to come up with ideas for homemade gifts. I once made my hubby a Valentine’s teddy bear with a little box containing coupons I made for him with tickets for things like “1 free hour-long massage”, “1 candlelit dinner made with love and featuring the food of your choice”, “1 day of hogging the remote for the whole day” and other things that are lovely and free. The best part? These one-time use coupons never expired. My hubby still has a few of them left, and that was nearly six years ago. All it took was a plain, plush bear, some lace & fabric, a little bit of hot glue and a whole lot of imagination. That was the cheapest Valentine’s Day ever, and it had the greatest impact of all of them.

If you’re a little lacking in the art department, fret not. You can still find some great deals for wholesale Valentine’s Day gifts without having to spend the time and energy on artsy, time-consuming projects. Check out TopTenWholesale.com today for a list of wholesalers near you.

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October 3rd, 2007

There are some hot trends approaching in shoes, boots, jewelry and fashion accessories. But it pays to break lots and sort by Regional Taste. As they say: One fashion maven’s Regional Hot is another region’s Fashion Faux Pas.



The Big Apple

Bootie leather boots are still fashionable footwear across the country. But New Yorkers prefer boots with elegant, rather than rustic, details, such as soft suedes, fold-over ankle cuffs and D-ring trims. The brand name in booties is Loeffler Randall, though competitors and discount, look-alike designs abound.

NYC still likes simple gold chain jewelry. The current necklace of NYC choice is more shimmer than simple, with pink gold-over-silver chain links embedded with faceted crystals and faux pearls.

Left Coast L.A.

Layered, cotton tees – from crew neck to scoop with long, elbow and short sleeves – are still strong in L.A., providing they’re bright solid colors (Barn Red, Leaf Green, Chocolate Brown, Euro Blue) and they come in double or triple layers. Mossimo is the brand name.

Angelenos prefer their gold chain necklaces to be dangling charms, pendants and silver-brass-crystal “Wish” padlocks.

South Beach Miami

Sunny South Florida prefers strappy sandal shoes – very strappy, with thin, metallic leather straps continuing up to the ankle – for day and nightwear.

Marc Jacobs Sunglasses, made in Italy, are must-haves in Miami … providing they are wraparound, oversized or sport large square lenses.

Dallas

The Big D tends to dress quieter than other Lone Star State cities. But this part of the Southwest still likes Texas scale and proportions. Favorites are LARGE silver hinged cuff bracelets (imported by Sequin) and Kate Spade Patent Leather Platforms, with metallic patent leather, open toes and chunky platform heels … contrasted with soft satin ankle straps.

Dixie Atlanta

Leaning more toward the fashion conservative, Atlanta at Night leans toward La ROK jackets, from feminine dotted jacquard, short-sleeved, double-breasted jackets to shiny textured parkas. Atlanta pairs its conservative jackets with metallic tube tops, scaled-down Envelope Clutch Purses and Claudia Ciuti Italian Pumps.
Solidly Midwestern: Chicago

The Windy City of Chicago chooses stylish and practical accessories, such as striped scarves that keep the wearer warm — wool, acrylic, alpaca and polyester fibers – but can’t resist the style of running glittery, metallic threads through its ever-practical winter scarves. Chicago’s taste in jewelry also runs to the unique: polished wooden jewelry from long wooden-bead rope necklaces to multicolor wood stretch beaded bracelets.

Some fashionista trends, such as soft leather “bootie-style” short boots, are popular coast-to-coast. However, a savvy apparel/fashion marketer knows to target regional trends and preferences, sorting out pay-per-click keywords and ad strategy, ad headlines and targeting, by region.

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