RKS Sales Group Inc

Products That Sell

rkssales1 — Mon, 07 Nov 2022 11:43:07 +0000

What Products Sell and Why

Popular products that you buy and use on a constant basis may seem like a necessity for you, but may be different for others causing some products to sell better than others. For example, food is selling really well because of rising food prices, inflation and people need to eat. Toys are also selling well because there are very few toys in the marketplace due to the pandemic, manufacturing issues, freight from China and canceled purchase orders. That’s why maintaining a steady and stable product range of consumer goods will ensure that retailers and their customers will always be presented with an inventory in the stores ready for purchase. That’s why offering merchandise that is unique, bright, catchy and irresistible will intrigue customers and the media causing production sales to increase benefiting consumers, products and businesses.

Supply Chains and Liquidation

rkssales1 — Mon, 31 Oct 2022 10:38:33 +0000

Overstock is defined as “a supply or quantity in excess of demand or requirements.” Coming out of a pandemic where companies had no choice but to delay or change their inventory production are now attempting to catch up facing the huge issue of overstock. We had an enormous back up at the ports causing products that were on the water before and during the pandemic leaving products not getting delivered in a timely manner and as these shipments are now being unloaded many of the products have missed the timing of when they should’ve been at store level i.e. holiday goods that missed holiday sales or seasonal products like summer items or summer furniture that missed the summer selling season.

Target decided that they would sell off these products by pushing out tens of thousands of manifested overstock loads into the salvage and closeout market causing a huge amount of mixed truck loads hitting the market all at once. These loads required a lot of work to sort out and additional labor costs to get them out to closeout retailers causing a slow down in moving other closeout products as well. The supply of Target overstocks hitting the market right now is much larger than the overall demand at the retail level causing products to back up in warehouses and slowing down regular closeout opportunities for other companies. Sales of other categories like Toys, Housewares, and General merchandise for us have slowed down because of these Target closeouts. However, once the Target loads are moved through the salvage and closeout market it will open up for other opportunities and distribution channels again.

Supply and Demand

rkssales1 — Mon, 24 Oct 2022 18:47:57 +0000

Products That Sold Well During the Pandemic and What is Selling Now

While the pandemic had numerous negative effects on all aspects of life, specific products that we once took for granted flourished. Disposable masks, hand sanitizer, latex gloves, plexiglass shields, and even toilet paper were exceeding all of our needs during such difficult times. However, once the chaos calmed and people/companies regained stability, the need for these now-everyday products wasn’t as large causing major overstocks within the closeout market. There was such an overproduction of hand sanitizer and disposable masks and the demand for these items slowed causing a huge amount of excess in the market.

Prices followed the supply and demand, continue to drop and people no longer need a pack of 100 disposable masks in a month or in the coming year. In addition, the panic of not being able to get toilet paper, personal hygiene or cleaning products has leveled out and manufacturers have caught up with the demand. We guess the odd yet understandable want for a hazmat suit went back to the Amazon wish-list vs being in high demand.

Defining Overstock and Closeout Inventory

rkssales1 — Mon, 19 Sep 2022 16:02:05 +0000

RKS’s showroom is filled with so many different brands of food and toys but do you ever wonder what happens when their shelves become too full or manufacturers produce more goods than they can sell?

When inventory becomes stagnant from a retailer’s perspective, inventory piles up and limits their ability to sell current goods or allow enough space on the shelf to put new or current goods. When manufacturers have excess inventory it also piles up but causes space issues in the warehouse and doesn’t allow them to bring in newer goods or products. This overstock inventory has to be cleared out.

Retailers usually pull the product from their shelves and create returns consisting of assorted pallets of miscellaneous products. This type of return is considered reverse logistics product. Product returns from retailers are either sent back to manufacturers or directly to salvage customers.

Excess product that is sitting in a manufacturer’s warehouse is considered an overstock or first line overstock inventory. It’s not mixed up shelf pulls but are in original master cases packed like it would go into a distribution center of a retail store or chain. This type of overstock causes issues with space in the warehouse and limits the ability of a manufacturer to focus or sell its current product offering of newer goods.

RKS purchases primarily first line excess inventory or closeouts from manufacturers. The additional work to go through reverse logistics products is not something we’re set up to handle. It requires a team of people to go through all the pallets and sort out the good from the bad.

The pandemic caused all sorts of supply chain issues but that’s a discussion for another blog. We hope this clarifies the difference between retailer and manufacturer overstocks and returns.

Closeouts, Overstock Inventory and Liquidators

rkssales1 — Tue, 28 Jun 2022 19:47:22 +0000

What is the closeout business?

The word closeout can often be associated with excess inventory, obsolete, and wholesale. While many of these words do play a part in the definition of closeout as a whole, a large piece of the story is missing. Running a closeout business is not just buying goods and selling them to large supply chains. It takes a community and team to effectively operate within the secondary market. The process is much like a circle, a never-ending cycle with all components being crucial to obtain the goal. The closeout business is a multi-billion dollar industry and acts like the backstage crew when putting on a play. Like the stage crew, behind the scenes closeout distribution plays a quiet but important role in providing off-price retailers with their inventory.

Does a closeout mean the product is bad or used?

An item that classifies as a closeout is not necessarily damaged or inadequate. This assumption that all products that go through the closeout stage are damaged is a common misconception. Additional factors that lead to items becoming closeouts are package changes or simply an excess of inventory. Just because an item is close-dated or slow-moving doesn’t mean it’s bad or unsalable, it just makes it a great opportunity for consumers to get a great deal.

The Story of RKS Sales Group, Inc.

RKS Sales Groups showroom may appear as a child’s dream, filled with bright colors, candy, and toys. In actuality, the inventory in the showroom are final products all with backstories of the hard work and effort that go into what makes a closeout business. There is no quantity or inventory we’re afraid to buy so don’t be surprised if we buy a million units of one item but only 500 of another. If the deal is right and we can offer our customer a great closeout, we’ll buy it! So, once a deal has been made with RKS’ amazing sales associates, the shipping process begins. Products are stored in third party logistic locations (3PLS) and purchases are shipped to these locations then received. Once an item is sold it’s gets put in as an order with the 3PL and they prepare the order to ship. RKS then ships the products to customers warehouse facilities then the product makes their way to the retail shelf for purchase by the consumer. All products RKS purchase get sold and shipped to regular off-price retail stores that most people know and love. Discount Stores all over the United States. It’s up to the customer to track down our amazing new deals in common regular off-price retail stores.

Products on RKS display shelves are examples of inventory that is awaiting sale and searching for the ideal retailer. They also serve as reminders of the many steps one product must take to reach the retail industry’s ultimate stage. One small closeout bought and sold is one large step for customers worldwide to get a great deal.