Factory closeouts, also known as closeout merchandise or simply closeouts, refers to the process of companies selling off their surplus inventory. The reasons ascribed to factory closeouts can vary depending on circumstances, from manufacturers needing to sell their products at a steep discount to pay off their debts to simply having a surplus because of some vagary in the marketplace or on the assembly line during the production phase. Whatever terminology is used to describe these goods, it generally means the products need to be converted to cash in a big hurry. Click Here to Visit Our Recommended Factory Closeouts Site!

Factory Closeouts as Charity Donations The dilemma of what to do with factory closeouts has plagued companies for years. Because the products have to be moved in a hurry, they can expect to get no more than five or ten cents on the dollar even from regular wholesalers with whom they have long-standing relationships. Factory closeouts rarely result in a profit for the factory, let alone an ideal use of time, space, and manpower.

Meantime, the products continue to gather dust, taking up valuable storage space day after day. In some cases, the merchandise may be electronic equipment that requires routine maintenance or replacement parts to continue functioning at all. This entails not only spending money towards keeping useless products no one will ever want in working order, but committing personnel resources that could otherwise be diverted to more productive ends.

The solution for factory closeouts is to have the products donated to charitable organizations who could use them. This may not be as profitable for companies in the short term, but the public relations benefits alone should offset this. Furthermore, donating factory closeouts to charity can be used as tax write-offs for corporations, freeing up company resources along the way