How the model works
You buy stock below normal wholesale because it is short-dated, overstocked, or surplus, then sell it at a price that is still a bargain for your customer but leaves you a margin. The gap between your buy price and sell price, minus your costs, is your profit.
The critical constraint is time: short-dated stock must sell before the date, so speed and the right channel matter as much as buy price.
Choose your sales channel
- Market stalls and car boot sales for fast, local, cash sales
- Independent shops and discount stores buying to resell
- Online marketplaces and social selling for wider reach
- Catering, food service, and trade buyers for bulk moves
- Export, where compliant, for stock that is harder to sell locally
Work out your margins before you buy
Before bidding, estimate your all-in cost: pallet or case price, delivery, storage, and your time. Then estimate a realistic sell price and how fast you can sell the quantity.
If the numbers only work when you sell every unit at full price with no waste, the deal is too tight. Build in a margin of safety, because some short-dated stock will not sell.
Buy the right stock
Popular, recognisable brands and everyday products sell faster than niche items. Match the stock to your customers, and be realistic about quantity: a huge pallet is no bargain if half of it expires unsold.
Check dates, packaging condition, and storage needs, and confirm the total price and delivery on ClearanceFood before you commit.
Avoid the common mistakes
- Buying more than you can sell before the date
- Confusing a per-unit price with the full-lot price
- Ignoring delivery and storage costs in your margin
- Choosing slow-selling or unknown products
- Storing chilled or frozen stock without the right facilities