Change Their Business Model

 

 

 Simple Steps For Adaptation To Changing Retail Environment 
 

 

 

  Liquidators or Wholesale distributors of closeouts, overstock and customer returns are having problems to sustain growth. The retraction in the global economy is not the problem. The biggest challenge for the liquidator is acquiring sufficient sources of distressed inventories for their customers. I discussed this topic in my last article.

   To start we need to look at the retailer. The retailer is the source for the liquidator. The changing retail supply chain is making it necessary for the liquidator to change their business model. The liquidator needs to bring something else to the table. Retailers do not want to just dump their product. They want to obtain more value from these salvage inventories.

  A very easy way for a liquidator to start a transition to a value added processor of distressed inventories is have a monthly live auction. They can sell their stale merchandise. Their customers can also use this auction to their advantage. The auction once established can be a good way to get a pilot run from a retailer.The liquidator can guarantee a minimum price to get started with a retailer. This establishes the business relationship with the retailer. Making easier to obtain a contract for their regions returns from the retailer. This is a good first step. The change from liquidator to third party service provider is a long process. Taking simple easy steps is well worth the effort. This is one little to no-cost approach to sustain growth and viability. Many other steps will be necessary.

    This is an example of a dynamic business plan to meet needs of corporations. The understanding of benchmarking of business processes and best practices is key in staying ahead of the curve. The next article will talk about benchmarking. Why to participate in these studies.