A closeout liquidation usually occurs when a retailer goes out of business and hires a closeout wholesaler or a closeout company to sell off its remaining merchandise, fixtures and closeout merchandise. Saving money on closeout merchandise is easy if you find the right sale and know a bit about the items that are for sale.

Often, a closeout provider will buy the contents from the retailer at a greatly reduced price before offering the closeout list to the public. Of course, the closeouts wholesaler will strive to sell to the public at a higher price than was paid for the goods. Still, the difference between regular prices and what is available at a close out sale can be substantial.

1. Saving money on closeout is easiest if you search newspaper, online and electronic media ads and listings for closeout overstock or liquidation sales.

2. Learn whether or not the closeout liquidation is handled by the original company or a closeout liquidation wholesale company.

3. Visit in person or call the stores via telephone to gain closeout and product information before you buy.

Action Steps
The best contacts and resources to help you get it done

Build some background knowledge of recent closeout liquidations

If you are serious about achieving substantial savings at closeout liquidations, it is important to understand how the individual sale that interests you is structured and how closeout liquidators work. Learning about recent closeout liquidations will make you a more savvy shopper and save you from paying higher prices.

I recommend: Get some background on the recent Circuit City closeout liquidation to understand that all things are not what they seem at a liquidation closeout sale, and you can actually pay more than you should. The HD Guru site lists plenty of examples of how prices at Circuit City went up during the liquidation process. The LA Times ran an article on the disappointment many shoppers faced during the Circuit City closeout.

Research online closeout operations to get a feel for the process

There are thousands of online liquidation sites available now. Clever use of these sites will give you a feel for reasonable price points on items that are closed out, returned, liquidated or overstocked. This is a great way to get a lot of closeout information.

I recommend: Closeouts Central has a tremendous number of categories, meaning that you can get a line on almost any product before you pull out your credit card and close the sale. The AAA Closeouts Network has a frequently asked question section and offers the ability to contact a representative for advice.

Visit some online closeout blogs

You will get the greatest value regarding closeout liquidation sales if you know what the process is and how it works. You will experience the greatest financial savings if you fully understand the process in which you are getting involved.

I recommend: At the Blogs Catalog website, you can read about how the closeout industry works, get your own questions answered and benefit from the experiences of others. You can also find out where the next big sales will be. The Closeout Liquidator blog spot offers more of a themed narrative, but offers explicit explanations of the risks and benefits in buying and returning closeout merchandise.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you are interested in closeout wholesale options for your business, you will fare better if you get the advice of a professional or even hire a service to do all of the shopping for you.

Closeouts are an efficient tool for getting slow-selling merchandise out the door without it being a total loss. There are three main ways of handling closeouts: sell it yourself, advertise it with a closeout, wholesale or liquidation center, or sell it outright to such a firm and be done with it.

While accurately predicting what will sell and what won't is vital for any retail or merchandising business, even the best buyers and sellers will occasionally have a dud. The closeout company becomes the perfect repository for merchandise when:

1. Seasonal merchandise just didn't sell, and the season is over--put it on your closeout list.

2. A short-lived fad dies out, leaving you with distinctively branded--and distinctively passe--merchandise. Close it out, along with any of last year's fashions that may be hanging around, to make room for new styles.

3. You have, whether through human order error or consumer apathy, too much overstock and just can't sell it all. Close it out.

Action Steps
The best contacts and resources to help you get it done

Keep control of your own closeouts, overstock and end-of-season sales

Before you send your closeouts out the door forever, why not get a little more benefit from them first? Conducting (and properly advertising) an on-site or online closeout sale is a great way of bringing more bodies--and business--in your physical front door or increasing traffic to your website. If you don't have an experienced project manager on payroll or contract to manage this process, consider hiring or contracting a marketing professional to help you get the most benefit from managing your own closeout sales.

I recommend: Look to businesses like MW Strategic Marketing to provide you with solid marketing advice and solutions, including help with managing and advertising closeouts. Marketing Consultants offers executive search services, connecting the right marketing employees and consultants with your business to make sure your in-house closeout sales run smoothly.

Advertise with a closeouts wholesaler

If you want to retain some control over your merchandise but still need it to fly off your shelves--and are willing to offer it at closeout prices--advertising with a closeouts wholesaler gives you the best of both worlds.

I recommend: Closeout Trading offers a chance to advertise with them, retaining full control over your merchandise and increasing traffic to your website while reaching a wide audience of closeout shoppers and buyers. Closeout Central lets you add your website to their directory of sellers and still maintain control over your merchandise; they collect no fees or commissions beyond an annual membership fee.

Target closeout, liquidation and surplus dealers for a sale

Whether it's overstock on a staple item or damaged merchandise, finding someone to purchase your closeout and surplus items is as easy as clicking your mouse.

I recommend: If you have high quality merchandise (including seconds and distressed merchandise in good condition) that just won't sell, Kole Imports will buy merchandise from all price points, from dollar store to high end. AAA Closeout Liquidators will also purchase your closeout merchandise, offering a "clean sweep" so that you can sell the entire lot at once and start over with clean shelves.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Maintaining an active, friendly business relationship with your local closeout provider works both ways: Not only will it help to ensure your own close out options, it also gives you another resource for finding supplies you need at closeout prices. Once you've established a solid relationship, your closeout provider may be willing to let you see closeout information before it becomes public knowledge.

Learning strategies for closeout for beginners can be the first step into the exciting world of sales. You can discover the best method for finding closeout purchasing or selling opportunities and learn how the experts profit through their closeout transactions.

Consider meeting with a closeout provider to find out the best tactics for entering the industry with sound footing. For some other ways you might want to get a basic closeout education you could consider the following choices:

1. Find out about opportunities in closeout for beginners by taking advantage of information offered in online articles.

2. Learn about closeout terminology and processes so you become familiar with the lingo and mechanics of the industry.

3. Use online training to learn about closeout liquidation concepts for your business.

Action Steps
The best contacts and resources to help you get it done

Learn about closeout overstock tips and strategies by reading online articles

Educate yourself on the closeout wholesale process by reading articles offered online. These articles cover pertinent information updated on a regular basis.

I recommend: WiseGEEK offers a basic introduction to closeouts. Its article mainly applies to investments. BNET highlights an online article addressing closeout strategies using case studies from successful businesses. It also points out areas to consider when you plan to work with closeouts on a regular basis.

Garner basic closeout information before working with closeouts

When your business deals with closeouts overstock, it's very important to know the way the transactions work legally, and it's critical to understand the terms used in negotiations. You might want to make sure you understand the entire legal process of dealing with closeouts. Learn the terminology to keep your edge when purchasing closeouts.

I recommend: Cherry, Bekaert & Holland offers a detailed summary of how a closeout process works. It covers legalities and offers tips for closeout strategies in the business field. Epperson Enterprises offers a list of phrases and words used in wholesale closeouts. It clearly defines terms and how they apply to the closeout process.

Find the best way to work with close out inventory by taking online courses

Working with a closeout company involves industry techniques you could learn in a workshop or seminar offered online. Look for individual classes according to your personal business needs.

I recommend: Sales Excellence offers a unique training experience for clients interested in learning industry strategies such as maximizing strategies for working with closeouts. It interviews potential students to determine needs and addresses those in a customized curriculum via an online seminar. For discounted prices, The American Purchasing Society offers members a series of online courses and seminars in addition to live conferences, degree programs and workshops focused on purchasing and buying. It covers buying topics like closeouts and wholesale and also offers a link of surplus for sale for those interested in closeout deals.