It sounds like a dream come true for the online start-up: someone else is going out of business, so I should “get while the getting is good,” so to speak. While this might sound great, are you really looking at this objectively? There can be a down side to the idea; here are a couple of things to consider.
The first thing to consider is the hype of the sale itself. Don’t get sucked into the hype without checking into the price of the item elsewhere. You could try eBay or another source for the same item to see if the sale hype is just that, or if the item really is worth the low closeout price to be had. Often, closeouts sound great, but they are not really all that low compared to other outlets. But don’t give up; you might be able to salvage a real deal yet. If the going out of business sale is really just that, you can use the hype to your advantage and get the manager to deal with you, especially if you give him some incentive for taking the item off his shelf.
What you need here is a little tact and a lot of diplomacy. Go to the manager and ask for a price reduction, and be sure to mention that you are looking at a number of items on his shelf and wonder if you can take them off his hands if he agrees to sell you a serious quantity of his items. This way both of you win: he wins because he recoups his inventory costs, and you win because you get better deals for the effort.
Another consideration is that the item might not be the latest version and it may be difficult to sell. Make sure you do some research on the resale value of the item before you take the hype; you don’t want to get caught with a shelf lemon on your site that might not ever sell.
Going out of business sales can be great for profit margins, but it is a buyer beware opportunity, and not to be taken at hype value. Be cautious with sale opportunities to increase profit margins.
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