General Working Conditions And Schedules Of A Fashion Designer Wholesale Salvage Merchandise: A Definition

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Wholesale Salvage Merchandise: A Definition

Wholesale salvage merchandise is a merchandise category used by wholesale and close-out businesses to refer to merchandise that has been damaged or has been exposed to conditions that make damage more likely. Salvage is a term first used to refer to products transported on derailed trains. For example, if a train is carrying a container of electronics and a derailment occurs, the insurance company will pay the package owner for the damaged electronics. Damaged goods are picked up by insurance companies and disposed of through wholesalers. Salvage buyers primarily purchase inventory that may have been damaged by accident, fire, or flooding. Salvage buyers can purchase this type of inventory for literally pennies of the original wholesale cost, but must sort the product and repair any damaged items.

The Salvage category is suitable for retailers with access to consumers who can tolerate slightly damaged merchandise in exchange for implied savings. Salvage resellers should consider purchasing items that have less potential for damage. For example, a TV is much more likely to be damaged than a pair of jeans if the truck carrying it is hit. Also, most experienced salvage buyers prefer to focus on apparel and soft goods, as it is much easier to sew garments than to repair general merchandise. Above all, it is imperative that the buyer directly inspects the item to determine what percentage of the inventory is still salable and what it will cost to repair the damaged item. If inspection is not possible, buyers will want to get a price low enough to mitigate the risk of buying under the radar.

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