Our industry has attracted some fast and loose operators. I used to know everyone in the business. I could count them on the fingers of one hand. Today, I can pull up websites all day long from people and companies I’ve never heard of. Some are here today and gone tomorrow. Others are inexperienced and unreliable. One owned a carwash before starting his retail consulting business. Another has a picture of a sale my wife’s grandfather held sometime prior to World War II on his website. He claims 40 years experience. He must have worked for Mr. Brooker and be 100 years old to have held that sale. Strange, I never heard of him until recently.
Who are the others? Where did they come from? Were they storeowners or managers or did they even work in a store? They claim years of ‘retail experience’ and give the impression of having closed a lot of stores. Make them prove it. Oh, and by the way, ‘retail experience’ and ‘liquidation experience’ are about as closely related as ‘farming and fishing.’
Some liquidators even offer guarantees! The liquidator’s sales pitch will make it sound great, but when it is put into context with the rest of the contract, one will find the guarantee protects the liquidator and penalizes the store owner. I explain how these guarantees work in my book What Every Store Owner Should Know About Closing A Store. In this business, there are no guarantees other than to purchase the store and pay for it in advance.
Some work on a percentage and claim that makes them work harder. Untrue! They are busy watching the cash register making sure everything is rung up and nothing is sold out the back door or taken home. If a realtor or anyone else finds a buyer for the store they expect to get paid their full commission even though they had nothing to do with finding the buyer. Midway through the sale, when volume and commissions have dropped off, they are ready to make a bulk sale and move on to the next high paying percentage job. They won’t spend the time and effort to squeeze every dollar possible out of the sale. Others bring in merchandise (Often leftovers from previous sales) claiming it will help the owner make additional profits. They open an escrow account that all receipts are deposited in. Many bring in their own high pressure sales crew which increases overhead and alienates loyal customers. These sales people work on commission. To close a sale they have the authority to drop the sale price an additional 20% without asking you. Unbeknownst to the store owner, these sales people are paid an additional commission by the liquidator to sell his merchandise over the store owners merchandise. There seems to be no end to different liquidation schemes. Keep it simple, use Wingate!
For an in-depth explanation of all the different types of liquidators and misleading contracts some of them offer, fill out the form. We will send my book What Every Store Owner Should Know About Closing A Store. The chapter Choosing Your Liquidator will explain the different sale schemes and the deceptive contracts used to entice store owners. We’ll also send a packet of information about us and the service we provide.
With Wingate, you retain complete control of the store and the receipts from the sale. After all, it’s your store and your money. It’s our job to help you recover more of it!
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If you’re thinking of a promotional sale or closing a store, find out how we can help. Call 1 (888) 480-7253 today!
We welcome your questions, and we’ll send you our free confidential information packet.
You owe it to yourself to find out how we can help!
Request a meeting for a promotional or liquidation sale evaluation of your store and an explanation of the Wingate Sale plan customized for your store. No cost, no obligation.