Every once in a while, while sourcing your items you will break through all of the middlemen and finally get to the middle man who actually knows the factory or you reach someone who is selling excess from the factory themselves.
What is "excess" ?
Excess is when a customer orders a manufacturer to make 10,000 hats for example, for a very specific price. What usually happens is that the manufacturer makes extra in case of mess ups or items that are made with things like offset graphics, or improper stitching. Sometimes the total amount of mess ups are very minimal so they have a lot of excess. Some of the customers of these orders demand to know where the money is being spent because they want to know if $3,000 could be spent making 750 hats here, or 890 hats somewhere else. If there are extras left over and the customer asks about it, it isn't uncommon to say "We have 140 hats left over" when they actually have 370. They have already been paid so they have little to no interest in sending the remaining inventory knowing they can sell it themselves and make even more money off of the deal. Sometimes a customer will tell the manufacturer to keep it.
If you can get in touch with these people and offer them to buy everything they have to offer, even stuff you aren't personally interested in... you can and will make a lot of money.
Most of these items are completely legit, and have a pre-existing market. For example, one of these factories make some items that go to a company that distributes these specific items to 2 large chain stores and no where else. Very easy to resell, and offer a great profit.
So next time you are jumping through the middlemen on places like DHGate and Worldwide Brands, try to get as close to the factory as you can and build a relationship up them and start asking about their excess inventory.
What is "excess" ?
Excess is when a customer orders a manufacturer to make 10,000 hats for example, for a very specific price. What usually happens is that the manufacturer makes extra in case of mess ups or items that are made with things like offset graphics, or improper stitching. Sometimes the total amount of mess ups are very minimal so they have a lot of excess. Some of the customers of these orders demand to know where the money is being spent because they want to know if $3,000 could be spent making 750 hats here, or 890 hats somewhere else. If there are extras left over and the customer asks about it, it isn't uncommon to say "We have 140 hats left over" when they actually have 370. They have already been paid so they have little to no interest in sending the remaining inventory knowing they can sell it themselves and make even more money off of the deal. Sometimes a customer will tell the manufacturer to keep it.
If you can get in touch with these people and offer them to buy everything they have to offer, even stuff you aren't personally interested in... you can and will make a lot of money.
Most of these items are completely legit, and have a pre-existing market. For example, one of these factories make some items that go to a company that distributes these specific items to 2 large chain stores and no where else. Very easy to resell, and offer a great profit.
So next time you are jumping through the middlemen on places like DHGate and Worldwide Brands, try to get as close to the factory as you can and build a relationship up them and start asking about their excess inventory.
