Successfully Liquidating a Business
The day may come when a store’s owner decides to close their doors for good. They wish to move on to a new chapter of life and want to hold a liquidation sale before doing so. How should they handle this sale to bring in the highest profit while disposing of the goods?
Planning the Sale
Never start a liquidation sale without having a plan in place. Determine the value of the existing goods, such as the inventory mix and time of year. Owners need to consider the ratio of inventory to volume, how they will market the sale, what they will do with remaining goods when the sale is completed, and more. In addition, if they plan on closing one retail operation to establish a new one, they will need to look into fixture and storage management services.
Preparing for the Sale
It’s best to maintain a full inventory right up until the day of the sale. This helps to draw customers in while increasing the return from the sale. In fact, it is wise to purchase best sellers and add off-price merchandise to make the sale more enticing. Not only will this bring more people to the sale, but it will also increase the owner’s profits.
Include all information about the sale in mailings. For example, let customers know the fixtures and equipment will be available for purchase if the owner doesn’t plan to reuse them. Share information about all important dates and what payment methods are accepted. Furthermore, share information about final sales and other details a customer may wish to have.
Holding the Sale
Announce the sale early and often. This helps to generate interest and can draw huge crowds. Consider inviting loyal customers to a pre-sale event where they see the best selection and receive a discount on items they wish to buy. Hold this event a few days before the sale opens to the public. Create an email list for those who visit the sale, including new and loyal customers, as this will be needed when the sale ends.
Work with the media to inform the public of the event and increase interest. Profit margins are best early in the sale, so work to draw more people in during the first few days of the event. Consider offering customer participation incentives for those who visit the sale on more than one occasion. This helps to keep profit margins up while ensuring the majority of the items sell.
Clean Up
When the sale is complete, consider allowing loyal customers the opportunity to shop again and get deep discounts on any remaining items. Arrange for fixtures and equipment to be picked up by those who purchased early in the sale. Ensure the building is clean and ready for its new occupant.
Following Up After the Sale
Always follow up with customers who visited the sale. Thank them for taking part in the liquidation. This list will become of help if the owner decides to open a new store or establish another type of business. Customers will remember being thanked, as it shows the owner valued their business. This increases the likelihood of them visiting the new venture if one is started.
Once this step is complete, the owner can begin the next stage of life. They know they have done everything possible to close the business in a positive way. This allows them to move forward with no regrets, which is what every person wants when closing their doors for good.
