Buying and reselling old stock from warehouses is a great way to make money. Warehouse owners do not make money from inventory staying on the floor; they make their money from the loading and unloading fees. They are often motivated to sell old inventory at rock bottom prices just to make room for newer inventory with higher turnover. You can purchase this old stock if you have the initiative and the ability to haul the stock away promptly.
Call the warehouse and ask for the management office. The loaders and the floor manager are tasked with the movement of the stock, not the business side of the warehouse. You want to talk with the highest management official that you can; being nice to the secretaries is a great way to get a manager's ear.
Ask about their oldest stock, specifically how long it has been sitting on their warehouse floor. The longer the stock has been sitting, the more motivated management will be to sell the stock at a lower price. While talking, look up the retail price of the stock and the invoice price if you can find it. You want to get a price that is below the invoice by at least half, as you may have to sell the inventory below retail or even below invoice.
Make a low offer of only 25 percent of the stock invoice value. This will be rejected at most warehouses, but there will be a few where paying customers are lined up to use the space occupied by the old stock. These managers will be willing to sell the inventory at lower rates to gain the higher-profit new business. However, at most warehouses this low of a number will be rejected; counter with a higher rate, closer to invoice price.
Haggle over the price, but do not exceed half of the invoice price unless you have a potential customer already lined up who will pay over invoice for the product. Mention that you have your own truck and can pick up the old stock within the same business day. The prospect of getting rid of old inventory immediately will get most warehouse management to sell fast.
Pick up the old stock as quickly as possible, both to honor your agreement and to minimize depreciation. The longer you own the stock, the less it is worth due to age. Load the stock carefully to minimize damage, as that too will affect your bottom line.
Harvey Birdman has been writing since 2000 for academic assignments. He has trained in the use of LexisNexus, Westlaw and Psychnotes. He holds a Juris Doctor and a Master of Business Administration from the Chicago Kent School of Law and a Bachelor of Arts in both political science and psychology from the University of Missouri at Columbia.