Many think of “liquidated” merchandise as junk and “surplus” as what is left after the good merchandise has been removed. This is wrong! Most large retailers must liquidate perfectly good, unwanted stock in order to make room for newer merchandise. Companies spend huge amounts of money to house and track inventory. If they want to make profits, they must keep their inventory moving. If this unwanted stock is not sold, it becomes expensive to maintain, therefore, it is sold off to liquidators at a fraction of the original price.

There are many classifications of liquidated and surplus merchandise. At Sweetpeas, we carry those classifications that contain only new, first-quality merchandise.

Classifications of  Liquidated and Surplus Inventories Carried by Sweetpeas

• Overstock and Closeout
  If a retail outlet purchases a product in higher quantities than they can sell within a given period, it must liquidate the excess product. The excess product is referred to as overstock. Overstock items are sold using the closeout sale method and are new items in first-quality condition.
• Phantom Inventory
  This occurs mostly with larger retailers. A given amount of stock is lost somewhere in a computerized inventory system. When the merchandise finally shows up, it is outdated and has been replaced with current merchandise. Therefore, it must be liquidated. "Phantom inventory" are new items in first-quality condition.
• Overruns
  Manufacturers can make miscalculations in their estimates of the amount of product that can be sold. Also, during the manufacturing process the factory may find it is more economical to produce greater numbers of a given item. The costs of production may prompt the factory to over produce in hopes that more of the product will be needed. "Overruns" are new items in first-quality condition.
• Return to Manufacturer and Buybacks
  Retail and warehouse space is often not readily available. Manufacturers are competing in a global market. Retailers and suppliers have many choices today with the types and brands of products they offer. Buying back product that doesn’t sell is often required from a manufacturer as part of the contract it has with its customers. "Return to manufacturer and buybacks" are new items in first-quality condition.
• Obsolete Inventory
  Product improvement never ceases. We are constantly striving for faster, safer, cheaper, stronger, sharper, smoother, smaller, lighter, etc. When an improvement is made, out goes the old and in comes the new. "Obsolete inventory" are new items in first-quality condition.

Classifications of  Liquidated and Surplus Inventories Not Carried by Sweetpeas

• Less than Perfect (LTP)
  Less than perfect is just what it says! It’s not good business to sell an item with a flaw. It creates unhappy customers and most likely will be returned. Often the imperfections are minor details, however, Sweetpeas does not carry any "less than perfect" items.
• Customer Returns
  As long as retailers make sales, there are going to be returns. Returns are items purchased, then returned for exchange, credit or refund. Customers return items for many different reasons. Even though the item was returned, it doesn’t mean the item has no value. There are many perfectly good items returned, however, Sweetpeas does not carry any "customer returns".
• Salvage
  Somewhere in a back corner of a warehouse are goods that have been accumulating for some time. No one really knows exactly what the goods are worth. They may not even know the exact contents of the containers. But if it’s in the way, it’s got to go. In most cases these items are first-quality merchandise, however, Sweetpeas does not carry any "salvage" merchandise.
• Return to Vendor
  Some retailers contract with their vendors to buy back merchandise that doesn’t sell or that becomes a problem for various reasons. Often the vendor will credit the retailer and request the retailer dispose of the goods. This merchandise may be in first-quality or returned condition. Sweetpeas does not carry any "return-to-vendor" merchandise.
• Irregular
  Many factories have quality control departments that reduce expense by removing the products that are less than perfect, “irregulars.” Their customers are purchasing first quality, grade-A products. If their customer receives damaged goods it could jeopardize their business relationship. The damage goods will be returned at the expense of the factory. If the cost to make repairs to the damaged product is too high, it can be sold off as salvage or irregulars at a reduced price. Sweetpeas does not carry any "irregular" merchandise.