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The Risky Game Of Buying Liquidation Pallets For Resale
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- เผยแพร่เมื่อ 16 ก.ค. 2020
- Choosing the wright liquidation company for resale could be very tricky
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After selling and shipping fees you'd be losing money on 90% of these pallets..
that's why i spend less than $40 on driving 8 hours, total, to IN, from IL, rather than spend $200+ on shipping. i make money. takes hard work, and time, and not everyone wants to do it. everyone thinks it's just supposed to be an easy flip. you learn as you go, and learn from others, online, and in the end, it's supplemental for some, and others go all out and in time have warehouses full of used product. just wanted to chime in on...no one is forcing anyone to ship. even w high gas prices...i spent $40, tops in my SUV for 8-hour drive.
Way too high prices. The market value for liquidation is 10-15% of retail.
That's how much the wholesaler pays I bet at most 25% of retail!
50% was a ridiculout price. I just laughed.
These guys are just trying to piggy back on A&E's Extreme Unboxing. They are hoping to fleece a wave of newbies with no clue and a fresh credit card thinking they're going to get rich quick. 50% of retail. Unbelievable!
@@NavinJohnson_thethird I totally agree with you. Usually the bigger the tattoo the bigger their thirst for meth.
Ohhh okay Mike Cee
@@mendaciousreality8459 if you're willing to buy pallets at 50% of retail, I would happily sell you pallets all day long.
These have to be the highest prices I've ever seen!! Even online at the bigger pallet selling sites where you pay a little bit more, they only sell for 30-35% retail max..... not 50%!
Thats what I was thinking!
Yup!
Right, I would NEVER buy at 50% and you will get some returns If I and spending almost $900 I would like to get about $3000 because they don't look like fast moving items maybe a bit less if they are fast moving, you still have to pay taxes and your employees to handle them.
yeah and it's probably the retail price, but it was probably never marked as full manufacturer retail price in the store from day one.
The margins only work if you are the end user of the merchandise. The margins are way too small for resale.
Agree, terrible margins.
I mean it completly depends on who you are. If you're a medium-sized company and you're able to sell for full retail price, 50% is probably reasonable.
Don't do it Pete! Just like everyone in the comments is saying 50% of retail??? And shipping costs on top? No margin left! Run dont walk away!
Doesn't seem like enough of a discount.. Needs to be .20 on the dollar
they bought them at .20 and marked it up .30. 😏
Because for one, those are things that couldn't even fetch retail prices in the store.
I've done about 5 pallets for liquidation. For me,Too much headache with some of those returns, too much testing, too much stress, customer complaints, negative feedback. The best I've done with returns are shoes because its mostly returned because it didnt fit, not because its defective. It takes a certain type of reseller to deal with liquidation and piece them out. You have to deal with a lot of crap.
100% Agree!!
I agree. Comes with a lot of repairing and testing and turning 3 broken items into 1 good item or selling parts and pieces.
Its not for everyone bro I've been doing it for 4 years and it it legit s full time job all jokes aside!
Kory A so true and might even more than full time job because u have to do everything.
True we have to test everything and we got a mixed appliance Amazon return pallet and had 10 dented slow cookers and had to sell them for $10..00 because no one wanted a dented item, even at the flea market. Everything except 3 coffee pots worked. Good luck to all the pallet buyers and may you all be blessed.
They make money from newbies, wanting to get into Amazon / eBay.
Amazon no good .
These prices are outrageous. If people buy from them they are getting ripped off.
Exactly,how are you supposed to make money and profit from them??🤣🤣
Here they have sales of electrical stock auction online , no warranty and no inspection just the model number they where selling for around the full retail price (here things are cheaper in store) and some where even 10-20% over before the buys fee 15%! LOL some things went for 50% more than the price you buy in store guaranteed! LOL
Hey Pete, you live in Chicago, there are literally 7 different liquidation pallet companies you can buy from that are located in the Indianapolis area. All of those places are less than 3 hours away from you. If you are serious about pallet flipping for more inventory for your shop, Indianapolis is the place in the Midwest for your pallets.
That’s where he is in Indianapolis I’m pretty sure I was looking into this place and prices are to high
You're the guy who would know . . . Good tip FK
@@nastyballer9962 he says in video he's in NC
@@nastyballer9962 He's not, he's at J&S Wholesale in Asheboro, NC.
Shaun Mack I know I didn’t watch the whole video but there is one in Indianapolis that do the same thing
My favorite part of reselling - finding something to sell to cover the cost of the trip!
50% seems like a lot.
Not if you're paying shipping and fees as well as all the time involved. If you could snap your finger and get 50 points, sure.
@@lf2334 but that's not all included, that's the price of the pallet alone.
Completely agree. I wouldn't pay more than 25-30% retail. You don't know if everything is going to be what it says, shipping a few pallets aren't cheap, plus the time/money spent to list and ship on eBay.
This supplier is the one making the easy money here.
Is it alot, I buy Candles from liquidation site called Wholesale Clearance for 50 candles depending on type isn't ALot, The only thing I pay for is postage.
seems like a nightmare and a terrible idea. no profit ---nothing but trouble.i have no use for 20 broken vacuums
A lot of that stuff looks like returns. I worked in a big chain retail store shipping department, You can usually tell if it's a return because one pallet has many different items. Most likely from the Christmas season. You would be better off skipping the middle man (them) and do the same thing they do.
How would you go about skipping the middle man? Thanks.
@@D1Junk Lease a huge warehouse and buy truckloads..
@@andrewfreeman88 I think he's asking more on who to talk to AT Walmart, Amazon, etc. You don't just get the phone number to the guy who handles this stuff. You usually have to be in the know.
Freight just eats up the profit. If there were something closer to Chicago that you could pick up from, that would be the way to try it.
At those prices, not enough meat on the bone, and that's assuming all the items work and aren't missing parts.
The problem with going through a middle man like this is you are paying their markup so they make money to run their business as well.
Your best bet is to try and buy directly from the retailer, which is hard for one person as they want someone who they can offload pallet after pallet onto. One person isn't normally going to have the storage capacity for it.
Not a fan of paying that much for this type of inventory. My rule of thumb is 13% of retail perhaps going to 17% at best. Pete is absolutely right on buying inventory to cover the cost of a trip. Many, many years ago long before the Antiques Roadshow there was a New Hampshire Antique dealer that had a show on TV. George Michael of Merrimack, NH favorite saying was “learn to pay for the gas money”.
Look pete I've been doing pallets for 4 years now and I can tell you a few things on pallets never pay more then 15-20% retail pallets are defnitley a competive hot thing were im from and its a full time stressful job and its not for everyone it defnitley takes alot of work and it takes alot of knowledge there so much more to pallets then what people realize as far as how to tell what pallets have what certain things are on a pallet and what certain stickers means for the pallets and what pallets have more or less damage usually its legit alot to these pallets and people just don't understand how in depth these things go i have made alot of money off doing pallets in my time and have only lost money on 3 of the hundreds on pallets I have bought i was lucky that I caught on to the game quick and learned fast! Target baby and general merch are my favorite ones to buy along side on electronic pallets!
@@22ergie palletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspalletspallets
Sounds easy
Their prices are really high at 45 to 50% of retail. Best is 10 to 15% of retail....but that is hard to do nowadays with the pandemic...so if you can keep it below 20 - 25% your doing okay not great.
It blows my mind how much crap never gets bought and used. All these big box stores keep getting in product and shipping old product to places like this. I'm sure eventually most of these items find their ways into consumer homes. But there's gotta be thousands that also don't . ..
It's pretty sickening to think about all of the crap mankind manufacturers that goes directly to a landfill.
This is the first thing I think about. So much unnecessary waste
I have been reselling along time and i have tried the whole pallet thing before but i never liked it and it didn't make as much as i wanted. After being so damn blessed with yard sales and estate sale kinds of profit i find myself not being able to make enough money with this type of buying/reselling. Some people can make it work and some people can make money but its not for me. Now for someone who doesn't have the amount of knowledge as i do this is a good way to make money, but for me i am all about the treasure hunt. The whole reason i have been a reseller for 15+ yrs is because i love every min of it. When i got into the pallet game i found myself working my ass off and handling the same items each and everyday and it had me burned out. Everyone has their own niche or whatever and if you like doing pallets i believe you can make some money in this game but for the most part i would much rather spend my money else where and make a much larger profit margin. Thanks for the video Pete
Agreed its not for everyone.
But like you said different things work for different people
Yeah their prices are insane. They also broke any contract they have by saying the name of the store. Besides that, 50%?? Shelf pulls I will go as high as 20% and that's pushing it. Anyone buying from them might make 10% of MSRP after all is said and done. If you want to tie up $900 to make $200 at most, good luck with that.
And you are working your ass off just to break even. Ripoff!
Amazon is always returned items, mix lots and but some or all items may be fine and work, so the can be more risk, especially if you have to pay someone to refurbish, always approach Amazon pallets with caution.
Why buy these pallets of basically unsaleable products when you can purchase the same items new from the manufacturer at the same cost, 50% off retail. Also, pallet shipping isn't cheap. Go see Resale Rabbit's TH-cam videos about selling pallets of Amazon and big box store merchandise. He buys at about $0.10 on the retail dollar, and in turn sells at half retail price. Does very well on Ebay, etc.
Buying returns is A real crapshoot.
but rabbit talks too damn much.
@@catfisher420 he does but he gives good info!
@@catfisher420 he does talk a lot...but also make a lot of money,so......😬 and work a lot,!!!
Should be around 10 to 15 percent of MSRP
I guess im greedy I like to buy for $1 sell for $10 otherwise not worth my time
Same here. $10 minimum profit is my bottom. If I see an item that I KNOW I can resell quickly for a 5 dollar profit, I'll bite.
I remember years ago when an old timer told me that he wanted to invent something that cost 10 cents to make, sold for $1 and was habit forming.
The more money the bigger bucks. For example i got a small pallet of Outdoor heaters with 10 of them for 600 bucks. I sold each for 250$ to restaurants with outdoor dining and made 2500$ so i made 1900$ profit. All within 4 or 5 days of purchasing. I post it on offerup and marketplace and got 2 customers. One for norms and the other a chinese restaurant. The heaters were open box returns but there was nothing wrong with them but i still sold them.
You can use those emergency kits for the Zombie Apocalypse also...use the shovels to hit them in the head, tow straps for chokers...etc...Re-label them Zombie emergency kit
The problem is that Pete is a zombie in that mask.
😂😂
You can't choke a zombie. Restrain it yes.
My problem with buying pallets is what they claim the item sells for is never what you get out of it.
An item may have a "retail price" of $100, but that means the store probably has only $30-$40 in it. Retail prices are normally set fairly high to allow for markdowns and shrinkage (theft) losses.
Nobody pays "retail" anymore, so the term has become fairly meaningless.
No one pays retail for junk
50%, not enough meat on the bone for reselling.
Hey Piotr~this video came right on time . New shows starting on A&E in August "Extreme Unboxing" reality show all about buying and selling pallets and another "What's it Worth" think they go to peoples homes appraising items . Should be interesting. If I were you I would stick with brand new sealed (pallets) and get you name on the list for electronics. Thanks for the ride along ALWAYS interesting . . .
You are correct! I think everyone should buy from this company! That way, everyone gets screwed right off the bat and gets the hell out of our business!
I have a place near me that will sort all of the pallets they receive. They will repack the trash and sell the good stuff online or in store. The trash is only marked down 30%. The stuff they pull they sell for 10% discount. The don't tell the customers that the pallets have been sorted through. It is a really sad business practice. Buying liquidation pallets are ultra risky. Always do your research on the company you are buying from. Thank you for the video. Hope all is well during these times. God bless you. :)
In liquidation, if you are paying more than 20%, then it is not worth it for you as reseller
I've bought 3 pallets. All 3.... 80 percent of the merchandise was junk or broken. I wont be doing that again. Best of luck
If it’s in their warehouse you have to figure (big box) and couldn’t move it I would think it’s very hard to get rid of it. The store already got the meat off the bone for the junk/stuff for those that may be offended by me calling it junk ,and now the warehouse wants you to pay more there’s nothing left on the bone.
Hells NO!!!!!! This is exactly why I stay FAR FAR FAR AWAY from places like this!!!! Way too much work, not worth the return! This is like playing against the "house" in a casino. They make all the money off of you and leave you with the scraps! I would LOVE to run a place like this and make money off all the people who don't know how to run a business. I'm actually shocked to see Pete in a place like this..... this is for suckers!
This is a good business if you got the right customers and know where the demand is for each item you have. I have family in the resale business. They buy everything from clothing , to medical equipment and everything sells. You just need the right buyer. Their company makes about $900k a year with investment of $240k. Profits is around $300k a year after they pay their workers. Not bad, I see their lifestyle and how much free time they have on their hand and it is pretty amazing.
For Amazon pallets. Purple stickers mean it's Damaged. Blue/Green is Liquidation. Green is Unsellable. Yellow is Sellable. Orange and Red I don't recall, maybe Vendor Return or Lithium Ion?
In order to make a profit on anything....you need to buy it at 20% of the actual cost of the item. I live in California, and people have crashed and burned on these pallets. No one is going to tell you, but these warehouses DO separate the good stuff, the good stuff do go to specific customers.
So glad to see so many comments thinking the pallet prices are insane. Just a casual eBay/Mercator seller. You cannot make money with pallet prices like this. You would selling for 50% or more off the retail price. I don’t know how you sell these items and get your money back.
I guess Pete's mask is clouding his judgement.
Face diaper
Oof! 50% retail is asking for trouble. Shocked anyone can make money on that.
When you travel that far you have to calculate what you spent on gas and accommodation which will obviously affect your profit margin.
If you’re offering $2500 for a FTL from NC to Chicago, I’ll take that any day. True TL pricing is more like $1200-$1500 10 months out of the year on that lane.
I sell plastics for a living. So, I've dealt with many manufacturers. Many of these retailers get credited for returns/slightly damaged boxes etc. The last thing a manufacturer wants is it's own items back. Years ago, I was selling materials into the Dirt Devil "Royal Appliance" company. Back then, they were bringing in returns and tearing them down to reprocess the plastics. That has become a money drain in itself. That company today owned by TTI which is Chinese. So is the Hoover Company.
In the UK iv purchased many of these so called pallets from various outfits. Some are auctions some fixed price, hit and miss. Id say 70% is a miss. 99.9% are returns.
Its even worse now since covid, most places are now online auctions only.
30% of retail is in warranty ? I think product is overpriced, I could do better buying wholesale ?
So you know, J&S Wholesale in Asheboro, NC, avoid.... terrible prices.
lmao the most i get is 40-60% of retail. I need to be paying 20% MAX to even consider it.
You were right near my city when you stopped at the liquidation warehouse!!
I can see how this will work out well. Buying that pallet should allow you to claim mileage and expenses for the trip and the price of the pallet and you get the money from youtube for the video. I see it as a smart move.
You would be better off going to Barton's Discounts in Indianapolis, IN. That's where I go. Much better deals and much more to choose from
You should watch resell rabbit he just put a video out about buying loads and how he buys them. He goes pretty in Depth about how to figure out the best load for yourself.
You have to wonder if they get cherry picked through before they get shrink wrapped?
nature of people is to take the valuable stuff, and sell you the ice trays. I wouldn't do it.
Thanks for sharing, Pete. Be safe and enjoy your downtime.
smaller scale ,but used to go buy old tea chests at UK auctions - the actual chests in good nick are quite good resellers
in most were crap but in 1 i found a copy of " Titanic " magazine from 1912 like a brochure program for the liner & the 1st FA Cup Final after WW2 program , 8 pages - sold that for 285 quid :)
Wouldn't be for me. But if you know the market well.... resale rabbit is doing very well with this stuff.
50% of retail? There's no profit left
Yeah, I stopped at 1:10 on this one. Considering other factors it's even worse than paying 50%.
tough business and its aint for me.
@Donald J Trump Trump No, you need to do a LOT more research. There is great profit in reselling but NOT at 50% just for the pallet. You are CRAZY and probably broke!
I'd rather pay $1 at a yard sale or eatate sale and sell it for 50
There is a local business in my area that sells stuff off of these pallets individually. I have to imagine it's tough, not to mention overhead as well. Margins have to be thin.
Give us a update on how you do with what you got
50% from shelf pull isn't that bad not much money to be made but still new stuff so that's a plus. Now if it's mixed with returns walk away if it's all returns run away. 20% 30% max for mixed. All returns are a gamble I've got some where 95% of the pallet was junk missing parts broken old items returned in place of new items. And I've got some that everything was still new but opened not missing anything. Also take 10% off the total what they say retail is at least and that's closer to the actual retail price from what I've found. Do research plenty of places selling pallets today vs 5 years ago so you should be able to find a good place also Facebook has alot of pallet sale groups
I am intrigued. Cannot wait to see what you purchased. ✌️
Great video.. pls do more like these.. interresting to sense the margins on these liquidation offers & buinesses from big chains in the US..
Hi Pete I always wanted to buy these pallets and we have a place that sells to everyone but I'm leery about them I'll wait and see how you do on yours LOL !!
Hello, I wanted to tell you that if you want to know about pallet flipping you need to watch Franchise Kicks. He has flipped pallets for years. He is fun and informative to watch. He also just been going to his supplier. Which has been closed down. He doesn’t order on line. He picks them up in person. But he had to while the lock down. He knows a lot about many things. I’m glad to see you bought one for yourself. Good luck and God bless.
Doesn't wanna give name of warehouse but at 13:50 accidently shifts camera to shirt to reveal the J&S warehouse visitor bage lol 😜
if they slash their price 50% off the listing price, they may move some pallets. That place seems pretty dead.
I bought my pallets at a auction house I bought them ranging from $3-$16 and ended up making $1,600+ in a day. The total price of the pallets came out to $134 for 14 pallets. I didn’t pay for freight cause I already own a box truck. So there’s money to be made you just need to find the right deals
What kind pallets did you get for $134 and you got 14 of them
I know this is a to oo to resellers, but can you give an example of a great auction house one can buy clothes, shoes and jewelry pallets?
He or she won't share their secrets, after all he killing it
Where u at Kev
Just a suggestion: To possibly get one of those little microphones you wear on your collar, you fade in and out while your recording.
from what i've seen the going purchase price for pallets should be around 10-20% retail, but i'm sure you'll do well... build the connection and you'll get some killer deals for sure
PETE YOUR STRESSED BECAUSE THERE IS NO SAYING "I MEAN WHAT ARE YOU TRYING TO GET FOR THESE"
LMAO
to many dollars to tie up in a competitive environment
I enjoyed going on the trip with you. Beautiful mountains. Good luck on your sales with the blankets. I'm sure you will do fantastic.
Hugs from California 😉
Thank you Pete! This is just the kind of video I needed to see. Currently procrastinating on listing some 300-400 listings. Long story short about 90 % of my inventory was more or less a "Blessing" or atleast that's how I see it. So not much of my own buys and kidna hard to get motivated. However, buying pallets like these is one of my bigger goals so right after this video it's time to get busy 😁👍
Any updates?
Yeah how about an update?
Pete you went right past me on Interstate 80 I am right here at 80 and 304 in Hubbard Ohio close to the PA line if I would have known you was passing through you could have stopped and got a pickup truck full for me maybe next time keep me in mind. Thanks, Bo
Lorain, Ohio has a company called trademark global that warehouses materials from china in a old ford plant. I temp worked there for a week palletizing returns. Basically built pallets with garbage to sell to a single guy that would come buy 10 at a time at $150 a pop. We were instructed to keep the good stuff out and set aside for the owners to take home. Bunch of garbage furniture stuff from the mainland mostly, missing pieces and incomplete. $150 bundles of fire wood if you ask me. But that’s just one warehouse. I’m sure there are better places like where you’re at in this one, but not cheap looks like!
I think it's a decent idea Pete, as long as you select the right pallet. Can you show us another thrifting video was thinking about going out after lockdown and wanted to see what its like/get back into it! Thanks
here in the UK our charity shops have stopped being a source, they all price using ebay now
Every wonder where all those easy returns you made to costco / amazon end up??
J & S wholesale, nice leak with the badge
I'm not the pallet business, but just from first price at 50% that's too high. These people flipping from actual liquidation centers at prices of 10-25%.
We pay 1-5% of retail for our liquidation product and it’s been very profitable.
That looks just like the place I've bought pallets from. I know you where in NC. Wouldn't happen to be in Asheboro NC?
I buy 3 to 4 truckloads a week of box damage over stock and returns. Returns should be purchased at 8-16% slightly more if it is in season seasonal items (ie patio furniture durring the summer) box damage overstock from amazon should never be over 23% and box damage overstock from Sam's or Walmart is 20%-28% manifest contents depending. If they are selling pallets at 50% they are doubling their money. Pallet sellers typically do a 5-10% markup. This place is a joke and I would run far and fast
there asking 1/2 of retail it would not sale for retail hence liquidated so if you want to move it you have to sale at or a little above pallet price no-go BAD DEAL
Sir Pete is always fair, thats why i like/love this channel because its genuine and legit opinion. #KeepItUp
Keep it up 😢
Hey Pete I work in the toll booths along that Turnpike in West Virginia, I was hoping you’d come through my lane & I’d get to meet you! I hope to stop by your store one day. Cheers
My buddy buys pallets and resells the merchandise. He said it’s a big headache and plans on quitting soon. He said it sometimes takes over a year to just break even.
Really interesting. So cool you stopped to appreciate the view!
I hate when I buy Amazon returns because most things are broken.
check out your goodwill stores, a few are selling pallots for 40.00
Great video, Pete! Best of luck with the pallet. Safe travels!
i think everything they got from amazon is all returns
So if I understand correctly, you are paying 50% of retail for the stores' dead stock? If they can't sell it, how are you supposed to sell it? You know that they get this for less than 10% of retail. I guess they figure pallet sales are popular so people will pay a jacked up price.
Is it just me or are these too expensive?
So true, I took a recommendation from a youtuber ( S and S ) and bought 3 pallets from Via Trading in California. So much broken junk I could not even get parts money for most of it. Do your homework
or start dumpster diving
Ouch, that stinks. Was that your first time buying liquidation?
This is what I have been looking for to buyer whole Pallet.
I pay 10-20% of retail.
Mostly are returns, with missing parts.
WAY too expensive.