1. What does a trailer cost?
A typical trailer will cost about $10K FOB and has a retail value of around $35K-$50K.
2. What is the cost of freight?
There are many DC’s located all over the country so your trailer should ship from a location near your store.
3. Where does this product come from?
Some high-profile national furniture retailers sell a large amount of product online and have a reasonable return policy. These returns wind up in DC’s around the country at a rate of 3-6 trailers per month.
4. Why is it priced so inexpensively?
It is currently an untapped market! These products cannot be resold online, and the vendors do not have enough connections to retailers who are willing to purchase and resell returned goods.
5. Is the merchandise brand new?
These are goods that have been purchased brand new by the consumer, and then returned within the retailers’ parameters for returns. The average worst condition for these returns is perhaps a rub mark on the arm or back. Some mirrored pieces might need repair. There is a possible 5%-10% of salvage, but the remaining goods should be saleable at great margins.
6. What is the average profit margin a retailer makes on these purchases?
Many dealers have averaged 55-58% GP on each load.
7. Is there a minimum purchase amount?
You must purchase by the trailer, with one trailer minimum.
8. What types of furniture are available?
Once a PO & funds have been completed, a manifest & BOL will be put together with a list of product for each trailer sent once the trailer has been loaded. The contents are random pieces based on that month’s returned items. A typical trailer will consist of upholstery, leather, dining, accent pieces and bedrooms. Sound iffy? Request references to talk to other retailers who have done it before to ease your mind.
9. How often will I receive opportunities to purchase?
At any given time, there exists about 40-60 trailers of Z Gallerie, Abbyson, Wayfair & many other firms that we are contracting with. You should always have goods available as ecommerce sales continue to grow, so do the returns.