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Standard Loads versus Premium Loads
Are You Paying Too Much and Not Getting Enough

There are 2 types of general merchandise loads. Standard and Premium

When you buy a standard/processed load, you are buying a load where many of the premium items in premium categories have been removed. Don’t expect a lot of electronics, small kitchen appliances, domestics, tools, or sporting goods in good working order on a regular basis. That is what the jobbers pull out for sale on 3rd party websites. The remaining retail value of the leftover loads can be very low with very little premium merchandise.
Standard/processed loads offered on online auction sites can have low retail values and uneducated buyers can run the cost up to percentages that make profitability difficult. Do you really want to source your inventory by being the highest bidder in a crowded marketplace? Many buyers don’t understand this. They might get a load for $5,000 but it might only have a retail value of $16,000. Once you figure in the damage and unsellable product you could be struggling just to break even. It happens frequently.
Premium/Unprocessed loads are sold as or close to coming directly from the retail or web based stores. They are not subjected to the same high level of sorting and premium product removal as standard/processed loads. That is why the retail values are much higher and the damage rates much lower. That lowers cost and increases yields.
 
Example 1: Percentage of Sellable Retail Value Paid standard/processed Loads
 
Load Average
Load

Cost
Estimated
Retail
Estimated
Waste
Sellable
Retail
You
Paid
Standard A Grade Wal Mart $7,900 $38,000 $11,400/30% $26,600 30%
C Grade Wal Mart $6,900 $30,000 $10,500/35% $19,500 35%
A Grade Wal Mart.com
bought on auction site
$5,500 $18,000 $3,600/20% $14,400 38%
 
Example 2: Percentage of Sellable Retail Value Paid Premium/Unprocessed Loads
 
Load Average
Load Cost

Level 1
Estimated
Retail
Estimated
Waste
Sellable
Retail
You
Paid
Wal Mart A+ Premium $9,500 $55,000 $8,250 $46,750 20%
HSN White
Glove Premium
$9,500 $55,000 $8,250 $46,750 20%
Mixed Premium Load $9,500 %55,000 $8,250 $46,750 20%
 
A few things should stand out
 
Standard loads are expensive due to the low retails.
 
Loads bought on auction websites can be expensive due to low retail values and competitive bidding. Each load is not necessarily a full truck or even close to it. It is only the retail value of the individual load being sold.  A $5,500 cost load is no bargain if it has under $15,000 in sellable retail value.  That amount has to be reduced 50% if you sell goods at 50% off retail.  Once you add shipping you are struggling to get your money back.
 
Premium Grade Loads have much higher retail values and much lower damage rates.  That gets your cost as a percentage of sellable merchandise down to a level with good profit potential.
 
You Need Good Margins to be Successful
 
We offer Level 1 and Level 2 Premium Loads
The main difference between them are estimated retail value and load cost.
 
Estimated Retail on Level 1 Premium Loads is $55,000
 
Estimated Retail on Level 2 Premium Loads is $120,000
 
Call for Details and Pricing
 
You buy a truckload of merchandise with the hopes of reselling it at a good profit. The more you pay per retail dollar, the harder it becomes to realize that profit. Loads with high damage rates can be big losers.
 
Stop fooling around with standard/processed loads that can be heavy in labor and low in profit or loads on auction sites that get bid up beyond the point of profitability.
 
Standard loads have damage rates that vary from 10% to 90% with many now in the 50% range. Premium loads are usually 15% or less. You get a lot more good sellable inventory out of Premium Loads.
 
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