You may have read that buying liquidation pallets to resell is an inexpensive way to start a business, and are interested in learning more about this. But what is the market like for merchandise in Las Vegas? What are in these liquidation pallets? Where can you source them in Las Vegas? Our guide to buying liquidation pallets in Las Vegas will answer these questions.

What are Liquidation Pallets

Every year, retailers have to deal with large amounts of surplus stock for a variety of reasons. This surplus stock broadly breaks down into the following categories:

Customer Returns

Whatever the reason for the return, the result is the same - the retailer is left with items it sometimes can’t reintroduce to a store, even when the merchandise is returned basically brand new. These items are palletized and sold through liquidation channels by the pallet or truckload.

Overstock

Overstock comes from stores that have inventory that isn’t selling fast enough that they need to liquidate. Overstock is in brand new condition and can be sold at a higher price than customer returns. Often, you will find that overstock relates to seasonal products, especially clothing.

Closeouts

‘Closeouts’ are surplus stock originating from stores that are closing or being restructured. This is stock that is surplus to requirements and liquidated in bulk. Liquidation pallets are ideal sources of wholesale merchandise for those looking to sell reduced-price goods online, via flea markets and swap meets, through classified local ads and for those operating a discount retail store. So, what is the market for this type of merchandise in Las Vegas? Source: World Population Review, 2021.

The Market for Discount Merchandise in Las Vegas

As of the 2010 United States Census, there were 1,951,269 people, 715,365 households, and 467,916 families in the county. The Las Vegas Valley remains one of the fastest growing metropolitan areas in the United States, and about 8.7% of families and 11.7% of the population were below the poverty line, including 16.9% of those under age 18 and 7.6% of those age 65 or over. These numbers help strengthen the market for discounted merchandise. The Las Vegas metropolitan area has a population of over 2 million. It is 186 miles to the closest major city, San Bernardino, CA. This is a huge captive market for local businesses. Total incomes in Las Vegas are 11% lower than the national average. As a result, the climate for discount stores, and reduced-price merchandise, is favorable. In 2021, based on projections from The National Retail Federation, Las Vegas area consumers were expected to spend more than $30.1 billion on retail this year, a 6.5% increase versus 2020. Apart from the captive market of over 2 million people, with no alternative major city close by, Las Vegas also brings in huge numbers of tourists and business people, especially to conferences. For the first seven months of 2021, Las Vegas welcomed about 16.8 million visitors, and 19 million visitors in 2020 - despite the pandemic. This makes the city one of the largest in the world in terms of transient populations - a huge throughput of visitors every day who do not stay there for long. Many people in this population can be potential customers, but the market is not the only thing to help you start a low-cost business in Las Vegas.

Benefits to Starting a Liquidation Business in Las Vegas

As well as access to the large discount-friendly market we have mentioned, the tax structure is also favorable to businesses in Las Vegas. Source: Nevada Government, 2022.

Taxes

Taxes are Set in Nevada to Encourage Business Growth:

• Business income tax: 0%
• Personal income tax: 0%
• Franchise tax: 0%
• Gift tax: 0%

The current modified business tax rate is 1.475% of quarterly payroll exceeding $50,000. This means that businesses that have a quarterly payroll of less than $50,000/quarter or $200,000/year are exempt from the tax entirely.

Storage

The average storage unit in Las Vegas is 10’x20’ and costs $240.39 per month. This is lower than the US average for a unit this size, at $290. We have included a list of top storage options available in the greater Las Vegas area below.

Top Flea Markets and Swap Meets in Las Vegas

As flea markets and swap meets are ideal places to sell discounted merchandise, you’ll be happy to learn that Las Vegas has a thriving community of these meets, with many events taking place multiple times per week. We’ve listed some of the largest here: Charleston Indoor Swap Meet 4530 E Charleston Blvd, Las Vegas, NV 89104 Facebook Page | 702-459-0001 Rancho Swap Meet 2909 W Washington Ave, Las Vegas, NV 89107 Yelp Listing | 702-631-1717 Fantastic Indoor Swap Meet Las Vegas 1717 S. Decatur Blvd. Las Vegas, Nevada 89102 Website | 702-877-0087 Eastern Indoor Swap Meet 1560 N Eastern Ave, Las Vegas, NV 89101 Yelp Listing | 702 399-3433 Boulder Highway Swap Meet 4700 Boulder Hwy, Las Vegas, NV 89121 Swapmeet Bonanza 1720 E Charleston Blvd #1720, Las Vegas, NV 89104 Yelp Listing | 702 387-6001 Broadacres Marketplace 2930 Las Vegas Blvd N, North Las Vegas, NV 89030 Website | 702 642-3777 @ EXT. 104, 105 & 106 Las Palmas Indoor Swap Meet 3115 Las Vegas Blvd N, Las Vegas, NV 89115 Facebook Page | 725-266-0660 Source: US Bureau of Labor Statistics, 2020.

Where to Buy Liquidation Pallets in Las Vegas

With many major retailers and distribution centers, including one of Walmart’s largest distribution centers being located in Las Vegas, the city is a prime location to source pallets and truckloads from the top names in US retail. To access some of the top surplus merchandise in this retail hub, here are some of the best sources for liquidation pallets in Las Vegas: Direct Liquidation - Las Vegas 2215-B Renaissance Drive, Las Vegas, NV, 89119 LIQUI Depot - Liquidation Warehouse 3700 W Desert Inn Rd Suite A, Las Vegas, NV 89102 Las Vegas Discount Liquidators  1062 N Rancho Dr, Las Vegas, NV 89106 Las Vegas Liquidation Pallets 3201 Sunrise Ave #1, Las Vegas, NV 89101 Vegas Liquidation 4460 E Cheyenne Ave #2, Las Vegas, NV 89115 Local Liquidators 2300 W Sahara Ave Ste 800, Las Vegas, NV 89102

Storage in Las Vegas

Source: Neighbor.com, 2022. When starting to buy Liquidation Pallets in Las Vegas, you will need space to store your merchandise. If you don’t have a garage, or space in your home to store and sort through your buys, you’ll be happy to learn that storage is relatively inexpensive in the city. The average storage unit in Las Vegas is 10’x20’ and costs $240.39 per month. This is lower than the US average for a unit this size, at $290. We have listed 5 of the most affordable storage locations in the city:

US Storage Centers

3375 Glen Avenue, Las Vegas, NV 89121 https://www.usstoragecenters.com/storage-units/nv/las-vegas/3375-glen-ave Pricing 5’x5’: $25.75 /month 10’x10’: $43.25 /month 10’x20’: $115.75 /month

StorageBoxx at Southern Highlands

4765 W. Rush Ave, Las Vegas, NV 89141 https://www.shieldstorage.com/locations/nevada/las-vegas/4765-w-rush-ave-storage/ Pricing 5’x5’: $32.50 /month 10’x10’: $82.50 /month 10’x20’: $99.50 /month

Maycliff Mini Storage & RV Park Las Vegas

4001 E. Sahara Ave. Las Vegas, NV 89104 http://maycliff.com/ Pricing 5’x5’: $58 /month 10’x10’: $85 /month 10’x20’: $145 /month

Mini Masters Storage

6900 W. Craig Road, Las Vegas, Nevada 89108 http://www.minimastersstorageinc.com/ Pricing 5’x5’: $37 /month 10’x10’: $105 /month 10’x20’: $145 /month

Extra Space Storage

3450 N Lamont St. Las Vegas, NV 89115 https://www.extraspace.com/storage/facilities/us/nevada/las_vegas/300082/?cid=org%3A%3Afbsp Pricing 5’x5’: $38 /month 10’x10’: $101 /month 10’x20’: $202 /month Buying liquidation pallets in Las Vegas in order to flip the merchandise for profit is a viable business plan. With lower than average storage costs, a captive audience of millions of people, and a below-average income per household in the area favoring discount stores and goods, as well as the availability of liquidation pallet sales in Las Vegas, The city is as good a place as any to turn this tried-and-tested business model into practice.