What is “Scratch & Dent” Merchandise?

Every year, countless consumers replace or buy new appliances. Since it can be one of the most expensive costs in a home, homeowners are always looking for companies that can offer better prices. Prices on new appliances range from $350 to several thousand dollars depending on the type of appliance. This provides plenty of opportunity to deliver a better value-add to consumers.

Whether its high-end refrigerators and ranges to budget washers and dryers, did you know there’s a way to source these appliances for much cheaper? In fact, scratch and dent appliances can save shoppers a whopping 40-60% off retail prices.

What is Scratch & Dent Merchandise?

Scratch and dent merchandise refers to large appliances that are new, unused, and primarily sold at steep discounts. Frequently, these appliances are fresh from the manufacturer’s warehouse, and function perfectly fine. However, the term scratch and dent refers to slight cosmetic damages to the exterior of the merchandise. These scratches and dents only affect the aesthetics of the product, but not the overall functionality. This usually occurs due to accidental warehouse or shipping damage.

Where to Buy Scratch and Dent Appliances

You may be wondering where you can source some scratch and dent appliances for your business. Several large chains such as Lowe’s and Best Buy have created private, B2B, online liquidation marketplaces to sell their nicked-up products. There are also third-party retailers that specialize in scratch and dent merchandise.

Benefits of Scratch and Dent Merchandise

Profit Margin

Scratch and dent inventory is historically easy to sell and allows you to move inventory quickly. Something to think about: 80% of appliance purchases are replacement purchases. This means shoppers are looking for a unit to bring home fast, usually in the next 24-48 hours. With accessibility being the crucial component, if you have the inventory you can make the sale.

Includes the Original Warranty

Consumers love when they are protected by warranty, and you’d be surprised to find out that some scratch and dent appliances will still include a one-year warranty. For example, Lowe’s Liquidation offers a full manufacturer’s warranty on scratch & dent condition appliances, the Whirlpool Second Channel Marketplace offers a manufacturer’s warranty on all near perfect appliances, and GE Appliances Liquidation Auctions gives a one-year functional warranty on customer return condition appliances. The warranty guarantees that the manufacturer will pay all the costs for repair and replacement for any parts of the appliance proven to be defective, and remains a big selling point with shoppers.

What to Look Out For When Buying

Know what you’re in the market for

Do your homework. Study the auction lot manifest to find out what you’re potentially purchasing before you bid! The good news is, when it comes to appliances like washers, refrigerators, dryers, or ovens, you can have reasonable confidence that the item is in demand and will sell quickly.

Check the prices

Do the math. Use the manifest to research current pricing and make you’re still going to turn a profit after discounting 40-60%. You’ll want to have a general idea of the lot’s resale value potential; this will help determine your maximum bid amount. Oh, and don’t forget to factor in shipping costs!

Understand the potential risk involved

You should understand that there’s always a risk when purchasing liquidation inventory. There may be merchandise included in the lot that would require major repairs in order to resell. This, of course, can potentially eat into profits made on the unit.

Resellers have a great opportunity to source appliances that are high in demand, sell quickly, and turn a good profit. Many top appliance retailers and manufacturers use B-Stock to unload their scratch and dent merchandise. Be sure to check out all of the appliance auctions B-Stock has to offer at incredibly deep discounts.