Buy-Back’s are becoming increasingly common for manufacturers when they choose to work with large retailers. Unfortunately, buy-backs are an extremely labor intensive task and most manufacturers aren’t equipped to handle them. Having a partner like MAC Wholesale that that specializes in Buy-Backs enables you to meet the requirements involved with many of the biggest retailers, or to get your products into the biggest retailers.
What is a Buy-Back?
A Buy-Back is a situation where a manufacturer agrees to Buy Back products from from a retailer or a distributor. These may be the manufacturer’s own goods at the end of the selling season (if you have a guaranteed sale agreement with the retailer), or a competitor’s goods. The degree of difficulty for a buy-back depends on where the inventory is coming from.
First Line Inventory
First Line Inventory is inventory that has never left the retailer or distributor’s distribution center(s). First line inventory is easier to handle because the goods arrive clean and organized (usually!) – though some retailers have warehouses all throughout the country, and there is often a lot of freight coordination involved getting the products picked up and consolidated.
Shelf pulls are the most common type of buy-back. These are goods that are currently on the shelf in a retailer’s stores – and each store pulls the inventory to either ship the goods back to their distribution centers, or directly to the company handling the buy-back.
The first challenge with a buy-back of shelf pulls is sorting. Typically each retail store takes the merchandise and throws it all together into boxes or gaylords (large pallet-sized bins). When we receive the goods they are typically in unsorted gaylords, and each item must be separated and counted. This can be an extremely labor intensive and space intensive task, especially if there are many sku’s included in the buy-back. It is also very rare for the number of units received to match what it estimated to be coming from the stores.
The second challenge is product condition. Once goods have been removed from their factory cases and handled (as well as shipped) – they cannot be sold in new condition if the packaging is worn. These are There is usually a percentage of goods which are received in unsalable condition, though this cannot be determined until the goods have been received.
MAC Wholesale is your Buy-Back Partner & Specialist
As one of the nation’s largest buy-back specialists, let MAC Wholesale be your partner for your next Buy-Back. We have the warehouse space, staff, and experience to ensure that the buy-back process goes smoothly and efficiently. We can pick up shipments either directly from the retailer’s distribution centers, or directly from their stores. Most importantly, we will handle the headaches of the buy-back process, and allow you to focus on your core business. Having a partner like MAC Wholesale can be a major asset to your business, and allow you to get your products into new retailers, or allow you to have a solution to selling retailers that require guaranteed sales. We can work with you on a case by case basis, or establish an ongoing program to regularly receive and purchase your buy-backs.