G.A Wright has developed a Special Report on the 4 basic approaches to selling a retail business and why conducting a Professional Store Closing Sale may be the best option. This is a just a small summary of that study. A full report is available if you call our office at 303-333-4453 and mention this BLOG.

1.) Selling as a Going Concern: Selling to a buyer as a going concern has the initial appeal of being fast, risk-free and yielding the highest possible price. Unfortunately this is generally not the case. Selling your store as a going concern is a lengthy process. Most brokers estimate a sale taking a year or more to find a qualified buyer. Additionally there is a huge financial risk- A buyer who is looking for a business, usually does not pay cash. He or she wants to negotiate a leveraged buyout and buy the business at much lower rates.

2.) Bulk Sale:It’s not difficult to find a bulk purchaser. Many companies and individuals buy inventories to be resold through discount centers, on-line overstock sites or auction houses. However when selling in bulk the top dollar generally achieved is about 25 cents on the cost. The average is usually 15 cents on the cost dollar.

3.) Auction Sale: This type of sale is the fastest approach to selling your inventory. Auction sales can produce 30 to 45 cents on the cost dollar for good inventory. Auction fees run about 25% or 30% of your gross sales and are deducted from the gross proceeds of the auction. Returns are typically 25 cents on the cost dollar.

4.) Store Closing Sale: Many retailers are reluctant to consider a store closing sale, because it is the most involved of the four means of selling. The return appears uncertain and some think that “Going Out of Business” carries a negative connotation. But a Store Closing Sale can yield the highest return of the four methods listed. This type of sale attempts to sell the business in parts rather than as a whole. During this type of sale you sell directly to the consumer and not a buyer. Consumers will buy inventory and fixtures at discounted retail prices. Your profit margin will remain steady and you will get a better return on your investment. Additionally every part is sold at retail prices instead of wholesale therefore making your business more valuable to a buyer after your sale has ended.

Questions? Call us at 303-333-4453 and ask us to mail you our report “How Much is your Retail Business Worth”