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A year later the owner decided to liquidate his second store and use Wingate again. He knew Wingate would get the best return possible. Starting inventory was a little over $2,040,000 and another $617,000 was added when the first day of our Pre-Showing sales ran over $152,000 by far the biggest day the store had ever had! Total inventory cost ran $2,658,000, and reported sales ran over $3,000,000 plus the sales of fixtures and equipment. Our customer incentive program had 7,736 customers participating which helped generate additional customer traffic and stimulate sales without giving additional discounts. This helped us hold media advertising expense to a little under $25,000 or .008%! This sale was even more profitable than the first sale. The owner stated: “We are now two for two with two home runs.”
When selling your business, buyers will typically discount your largest asset off of wholesale prices. When conducting a store closing sale you end up discounting your largest asset off of retail prices. We were able to exit our business with much more than we ever could have dreamed of due to the help of Wingate and Kevin Bonnet (Consultant).
We are facing highly unusual times. Stores in many states, cities and counties have been forced to close, and the consumer has been encouraged to stay at home and only shop for necessary items. It now appears that things are beginning to break open, the consumer is starting to get out and retailers are going to have to aggressively go after every dollar they can get to cover lost sales.
The retail industry has lost their good spring selling season. Retailers are stuck with two seasons of merchandise. Now they must reopen with a strong sale and heavy advertising to generate customer traffic and raise a huge amount of cash. Out of season and over stocks need to be converted to cash while in season merchandise needs to be sold to make as much profit as possible. AND IT NEEDS TO BE DONE AS SOON AS POSSIBLE!