Liquidation Boot Camp – Day One Within three days I plan to get you up to speed in terms of the liquidation industry, but heed my warning...if you’re the type that is too excited about the opportunity to buy liquidation pallets and truckloads, please by all means, delete this email and unsubscribe from our list. I don’t mean to be too forward, but I know from experience those that dream about huge profits and little risk are typically those that will lose cash fast. You must apply logic and good reasoning to this idea of purchasing bulk assorted loads of excess merchandise. Buying customer returns, shelf pulled items, and overstock inventories will not get you rich overnight. Not only that, but the second and third night just might give you an ulcer. A lot of research and hard work goes into a successful business that works with salvage merchandise. It’s fun, but not glamorous, my wife can attest to that! The above two paragraph I consider my "Do Not Trespass" sign; you see some people will bow out once they see a No Trespassing sign,” the nonrisk takers who prefer to be guaranteed safety over adventure.

Those that see the sign or warning, but pass right by just might find some kind of reward in the adventure. What type of person are you? A risk taker or someone that likes certainty? I always send out a caution flag to those new to liquidation merchandise for three very distinct reasons: •

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Most purchases arrive assorted meaning you will rarely have much say in what you will be buying. A pallet filled with general merchandise returns is just that…a pallet of assorted general merchandise. A mixed assortment of various items. I call this "buying blind," or better yet "rolling the dice.“ Sometimes loads are not advertised honestly. For example, you might order a pallet of electronics that was described as DVD players, TV’s, Stereos, Game consoles, etc., but when the pallet arrives it is filled with electronic accessories like remotes, cables, wires, adapters etc. with no high ticket items!

Pallets and truckloads can have a high percentage of damages. So, in this case, you might be told to expect 10-15% damages, but when the load is delivered and inspected you note a more accurate damage ratio of 30-40%

I’d like to meet the risk takers back here tomorrow for Day 2 of our Liquidation Boot Camp. To those who wish to bow out…I respect your decision. Those who want to continue on…Welcome! Buckle your seat belt, it’s going to be a bumpy (but fun ride). I do have a little homework for you...don’t worry you will not be graded. I would like to learn a little more about your experience with wholesale liquidation merchandise. This type of feedback is invaluable to me because I can better understand my audience and know how to create better training tools for those who read my Liquidation Blog. Please answer the following: o

Have you purchased customer returns, shelf pulls, or overstock items in quantity? Was it a good or bad experience?

I really appreciate your help with this, and I’ll talk more to you on Day Two of our program (wholesale liquidation definitions). Please bring a sack lunch and a bottle of water. If you’re nerdy like I am and want a ton more information about product sourcing...check out my info-packed Liquidation Guide. Most people purchase our guide and read it cover to cover...it's that riveting. OK, maybe not riveting, but it's packed with all of my product souring experience (yawn). Get the guide, you'll thank me later-

Liquidation Boot Camp – Day Two Welcome to Day Two of our Boot Camp...I’m glad you’re back to learn more about wholesale product sourcing. I realize I may have been a little harsh yesterday with my email warning about buying pallets and truckloads, but I really wanted to separate those who are serious versus those who probably shouldn’t be taking any risk.

OK, I’m done with all the negative-Nelly stuff. Let’s get to it today…there's a lot to learn. You need to have good understanding of the following terms if you’re buying pallets and truckloads of liquidation merchandise. Broker - Someone who resells the inventory of others. Many are small home based business with no tangible inventory and little financial substance. You want to avoid dealing with brokers on items like clothing by the piece or shoes by the pair as they may not be completely familiar with the products they are selling you and they put a markup on the products. When you purchase these types of items direct from the distributor you avoid the broker's markup. Many distributors will help you out if there are problems with an order while a broker might not since they never had the products to start with. Many large retail companies use liquidation companies to distribute their products. These are usually truckload offerings of items like general merchandise. A good broker can be very helpful in these situations if they know the market and put you in good products at a good price.

Salvage - A very broad term that encompasses many product situations. A good definition for our application is...goods that cannot be sold in the normal course of business due to defects, damages, irregularities, or store policies, like stores not re-selling customer returns even if they are fully functional. Salvage is deemed to have some value. It can also include insurance salvage and other items that have lost some of their value. Customer Returns - Items that were purchased by customers and subsequently returned. There are many reasons merchandise is returned. Damage, defects, general lack of satisfaction with the product, the wrong size or color, the customer could not figure out how to use the product, or changed their mind and wanted their money back are among some of the many reasons products are returned. Damage rates are generally higher with returns lots than with overstock lots. Overstocks and Shelf Pulls - Items that were pulled from warehouse inventory or off of store shelves. Expect minimal damage in the 3% to 5% range on many items. Irregulars and Seconds - Products that were removed from normal distribution because of a flaw. This could involve variations from standards with respect to color, construction, size, and many other criteria. I'm not a big fan of this category.

Cherry Picking - The widespread practice of removing premium items from pallets once they are in a distributor’s warehouse. This is why we recommend direct shipments on many products which is the best insurance against cherry picking. OK, now you’re an expert...not quite. There are many more terms to become familiar with...you should take a full class in product sourcing by reading my liquidation guide. Tomorrow, we'll talk specifically about purchasing pallets and truckloads. OK, now you know the basic types of merchandise available within the liquidation industry, but who do you buy from? This is a difficult question to answer so be sure to read our final Boot Camp email tomorrow…talk to you then!

Liquidation Boot Camp – Day Three Here we are on day three and your final Liquidation Boot Camp email. Let’s review before we get to today’s content. Day one I tried my best to scare the hell out of you by explaining how buying pallets and truckloads can be very unpredictable. You stuck it out, and I truly admire your perseverance. My wife and I stuck through the tremendous learning curve of buying customer returns when we first started. It was gut wrenching at times, but we both consider ourselves experts when it comes to product sourcing now. You will be too, trust me! On day two of our Liquidation Boot Camp I explained some basic product sourcing terms, and my hope is that you committed those definitions to memory....Well, did you? Let’s get on to day three...your final boot camp lesson, which is "I’m ready to buy", but who do I buy from?" Here are your choices in no particular order: Buying Direct – Products that are shipped directly from their source like a retailer’s distribution center. There seems to be a lot of confusion about buying direct when it comes to buying from a department stores contracted liquidation provider. Some retailers such as Sears, Kmart, Walmart, Amazon.com, and others use a third party company to receive and resell (liquidate) all customer returns. Buying from this “third party”

should be considered buying direct because there is literally no other way to source returns at such a low cost. Make sense? Not all retailers and catalog companies use a third party company to liquidate stock. In fact, Macy’s liquidates all stock in house.

Buying From a Wholesale Liquidator – Liquidators generally own most of the merchandise they sell that is less than a truckload. Many own truckloads as well. You generally get better pricing and service through a wholesale liquidator rather than a broker on many items. Some notable wholesale liquidators include (get out your pen and paper) Via Trading, Topper Liquidators, Countryside Closeouts, and H & J Liquidations. Buying From a Broker – Someone who resells the inventory of others. Many are small home based business with no tangible inventory and little financial substance. Most Brokers are not familiar with the products they are selling you and because of this, loads can be described incorrectly. When you purchase these types of items direct or from a wholesale liquidator you avoid the broker's markup. NOT ALL BROKERS ARE BAD. Wow, did the caps get my point across? Well, it’s true. There are some really good Brokers out there who truly have connections to some fantastic pallet and truckloads. In my Liquidation Guide I explain how to research and evaluate Brokers within the industry.

Buying At Auction – Yup, you can buy pallets and truckloads through online auctions including Liquidation.com, Palletbid.com (owned by AML Inc), BStock liquidations, and Genco Marketplace. Congrats! You’ve made it through my three day Liquidation Boot Camp (applause). Although the boot camp provides some great info it in no way tells the whole story of liquidation purchasing. If you’re still a little weary of making a first pallet purchase, do yourself a favor and get The Liquidators Guide Over 130 pages of in depth industry secrets, hard earned knowledge, and my personal advice when it comes to product sourcing. I offer a 100% satisfaction guarantee with your purchase. Please email me any time with your liquidation questions....I would love to hear about your business!

Rob Cyr www.robcyr.com