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Decoding the Jargon of the Bargain World

Posted by Stover's Liquidation on Apr 5th 2024

Welcome to Liquidation 101, where we unravel the mystery behind the terminology of the liquidation industry. Whether you're a seasoned bargain hunter or just dipping your toes into the world of discounted goods, understanding the language used in liquidation sales is crucial for making informed decisions and scoring the best deals.

In this comprehensive guide, we'll break down common terms and terminology, empowering you to navigate liquidation sales like a pro.

Understanding Liquidation

Let's start with the basics. Liquidation refers to the process of selling off goods or assets at heavily discounted prices, typically due to bankruptcy, overstock, or the need to clear inventory quickly. This can occur through various channels, including physical stores, online marketplaces, and auction platforms.

Types of Liquidation Sales

Bankruptcy Sales

These occur when a business files for bankruptcy and needs to liquidate its assets to pay off debts. Items are often sold at deep discounts to expedite the process.

Overstock Sales

Retailers may hold liquidation sales to clear excess inventory that hasn't sold through regular channels. This could be due to overordering, changes in consumer demand, or seasonal factors.

Closeout Sales

When a store is closing down or undergoing renovation, it may hold a closeout sale to liquidate remaining stock. Prices are slashed to clear out merchandise before the closure or renovation begins.

Common Terminology

Now, let's dive into the terminology you're likely to encounter when shopping at liquidation sales:

  • Lot: A group of items sold together as a single unit. Lots can vary in size and may contain assorted products or items from the same category.
  • SKU (Stock Keeping Unit): A unique code assigned to each product to track inventory. SKUs help retailers manage their stock and identify specific items.
  • Manifest: A detailed list or inventory of the items included in a lot. Manifests provide essential information about each product, such as quantity, description, and condition.
  • As-Is: Items sold in their current condition, with no warranties or guarantees. Buyers should inspect as-is items carefully, as they may have defects or damage.
  • Resale Certificate: A document issued by the state that allows businesses to purchase goods for resale without paying sales tax. Resale certificates are required for buyers intending to resell liquidation items.
  • Minimum Bid: The lowest amount a seller is willing to accept for a lot at auction. Bidders must meet or exceed the minimum bid to participate in the auction.
  • Buyer's Premium: An additional fee charged to the winning bidder on top of the final bid price. Buyer's premiums are common in auctions.

Now that you have this information, you can approach liquidation sales with confidence. Whether you're searching for great deals for yourself or planning to start a resale business, knowing the terms and language used in the liquidation industry is crucial for success. Enjoy your shopping, and may you discover plenty of valuable items that bring you profit!

Don't forget to check out Stover's Liquidation for future liquidation events and amazing offers. Good luck with your search!