More Basic Liquidation Terms to Know

Below are some more terms that are commonly used in the liquidation business that you will surely come across.

Manufacturing Cost

This term stands for the overall costs of all the resources used in the creation of a product. The production cost is usually split into about three groups: manufacturing overhead, materials cost, and labor cost.

This is basically the cost to a manufacturing company of making a product consisting of direct materials, direct labor, and factory overhead; also called manufacturing expense.

Manufacturer’s Suggested Retail Price: MSRP

The price that a product is to be sold for in the retail stores as suggested by the manufacturer that creates the product. MSRP doesn’t always match what the store sells the item for or the price that buyers would like to pay for the item.

Stores might need to set their price ranges lower than the MSRP in order to move stock, particularly for products with minimal demand or in a slow economy.


Retail is the word used to describe the sale of anything. It is the selling of products and services from people or organizations to the buyer. Retailers are a section of an integrated system referred to as the supply chain.

A merchant buys products in huge amounts from producers and manufacturers directly or from a wholesaler, after which they sell smaller amounts to the customer to make a profit. Basically the sale of something in general. Retail is the sale of goods and services from individuals or businesses to the end-user.

Bulk Purchasing

This particular term refers to the purchasing of a large amount of units. If more units are purchased, then the price per unit can be lowered to a negotiated price. Wholesale is essentially the selling of goods in large amounts at a reduced unit price to retail vendors.

The wholesaler typically sells at a slightly cheaper sales price per unit if the retailer agrees to buy a large amount of units so that the wholesaler can make some profit. In a nut shell; the purchase of much larger quantities than the usual, for a unit price that is lower than the usual.


A creditor is any person or firm that provides credit by lending another company or person borrowed money so long as it is repaid by a set date in the future. Creditors are typically labeled as either real or personal.

Real lenders have authorized legal agreements with the debtor allowing the lender to take any of the debtor’s possessions if they do not repay the loan. Personal creditors are simply your family or friends that lend you money.

Wholesale List

A wholesale list is an accumulation of data providing information for numerous wholesale businesses. Anybody can use a wholesale list instead of creating one from scratch. This can save a lot of time as the producer of a wholesale list have already done this.

A person planning to purchase computers from suppliers do not need to waste time and energy trying to find such companies since there already exists a wholesale list on that type of product already.

Estate Liquidation

An estate liquidation is just like an estate sale in that the primary purpose is to liquidate the property with an estate sale firm. In a liquidation, the items too valuable to be safely kept in the home are sold.

The majority of liquidators that carry out the estate liquidation will charge a percentage of the total net profit for their services.

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