If you are just starting your business, the worst thing you can possibly do is buy someone’s inventory who is closing their business.
Don’t set yourself up for failure
Several Reasons This Won’t Work
- You don’t know if they knew what they were doing when they bought the product. Many times, people will buy from inferior wholesalers because they don’t know what they are doing. Buying their old inventory will make you pay for their mistakes.
- They may have overpaid for the product. Chances are, if it is good quality product, they overpaid for it if they weren’t skilled at buying (or had a great coach). If they overpaid, guess what? You will too. They will want to recoup that money back at your expense. When you over pay for product in the beginning, it does one of two things. You will either not make as much profit when (if) you sell it, or you will have to charge more for it that it is really worth. Want to know what deters people from shopping with you (especially as a new business)? Yep, prices that are too high.
- You may not have the same customer they had. Thus, those products will not sell quickly or well (two very important things). In order to hit seven figures in sales (or even six), you have to be able to turn products quickly and well. Both matter. Quickly as in less than 30 days from you receiving it. Well, well that means easily and at a proper profit. Without you stressing out about it.
- They are closing their business. No matter what they say, it’s not good. Don’t take their “problem” off their hands to “help”. I think people can say and do the darnedest things when they are in a predicament and nothing spells predicament like someone who is trying to offload all their inventory because they are quitting the business. Don’t be their savior and handicap yourself from the start.
- Finally, you just don’t want to start a new adventure with someone else’s leftovers. It immediately puts pressure on you to sell the products that probably aren’t that great. That can lead to you quickly thinking you’re a failure and giving up when you never really gave yourself a chance to succeed. When you are starting a business, there are going to be enough things to make you feel like a failure on certain days. Don’t set yourself up for it from the start.
Bottom Line: Don’t do it. Start fresh with products YOU picked out!
Want to read more? Check out how to find the best wholesale clothing suppliers here: https://carinahatton.com/2022/07/11/wholesale-clothing-how-to-find-the-best-suppliers/