How to Sell Going-Out-of-Business Inventory

You've made the decision to close your store and have spent the last couple of months selling your merchandise at progressively higher discounts. You're nearing the end of your lease, however, and want to move the remaining goods before you close the doors. You're sure you could move the merchandise at a local flea market but would rather market your high-quality goods in another marketplace.

Instructions

Things You'll Need:

• List of merchandise to be sold/liquidated
• Dollar value of this merchandise
• Documentation for your business (for business broker)

1. Step 1

   Set a value for the merchandise. Before moving forward on an inventory sale, you need to calculate the total cost of the merchandise. This information will be used for two purposes: to assess the fairness of any offer and to provide unsold inventory information for your accountants.

2. Step 2

   Sell the business and inventory together. Depending on your business's marketability, someone may be willing to purchase your business and inventory as a package. Contact a business broker in your geographic area.

3. Step 3

   Sell the inventory to local retailers. If you want to sell ladies' clothing, for example, other clothing stores may be good prospects. While you may not recoup your costs, you'll accomplish your goal of unloading the inventory. Because you'll be closing your store, you won't have to worry about selling to a competitor.

4. Step 4

   Sell the inventory to a liquidation company. As an example, AAA Closeout Liquidators purchases surplus or closeout inventory and resells it in noncompetitive markets or other countries. If the company accepts your inventory for sale, you will be paid immediately. However, payment will be a fraction of the price you paid for the merchandise (50 to 90 percent below wholesale is common). AAA Closeout Liquidators states a minimum of $7,500. Other liquidation services are also available.

5. Step 5

   Liquidate the inventory at auction. According to Liquidity Services, Inc., their online auction marketplace displays merchandise from over 500 categories. More than 1 million registered professional buyers will provide global visibility for your inventory. Other online auction services are also available.

6. Step 6

   Donate the inventory to a nonprofit organization. Depending on your tax status, an unconventional option is to donate the merchandise to a registered nonprofit group. The group would then sell the inventory as a fundraiser. Contact your tax professional to see if this option is appropriate.