What channels of distribution are the Wholesale Liquidators using?
If this product or inventory is still in your distribution channels, it is important to understand how the buyer plans to sell it. If your only sales channels are brick and mortar and they are selling online that may work well but if they end up selling the stock to your competitor around the corner, that can hurt your brand and your bottom line. • Which geographic regions will they be targeting? If the liquidator can sell most of the stock outside of your key geographic areas or if they can sell it for direct use, you are in good shape! Most liquidators cannot guarantee this but you should definitely ask! • Has the liquidator agreed not to go through your existing sales channels? This is a bit of an obvious one but you would be surprised at how many companies forget to bring this up. • Does your company have inventory that needs to be liquidated often? Wholesale liquidators are often looking for a reliable source of new inventory and if you can provide this, you can often negotiate be
