Job Lot

Published Oct 25, 2023

Definition of Job Lot

A job lot refers to a large quantity of goods or products that are sold together as a single unit. These goods are usually sold as a bundle or package, and they may be discounted compared to purchasing each item individually. Job lots are commonly used in wholesale or bulk purchases and are often sold by wholesalers or retailers looking to clear out excess inventory or to offer special promotions to customers.

Example

Let’s say a clothing retailer has excess inventory of a certain style of t-shirts. Instead of selling them individually, the retailer decides to sell them as a job lot. The job lot consists of 100 t-shirts of various sizes and colors. The retailer offers the job lot at a discounted price compared to buying each t-shirt separately.

A business owner who operates a small retail store may see this job lot as an opportunity to resell the t-shirts to their customers. By purchasing the job lot, the business owner can take advantage of the discounted price and potentially earn a higher profit margin when selling the t-shirts at their store.

Why Job Lots Matter

Job lots can be beneficial for both sellers and buyers. For sellers, job lots allow them to clear excess or slow-moving inventory quickly. This can free up space in their warehouses or stores and generate revenue from products that might otherwise have gone unsold. For buyers, job lots can provide an opportunity for cost savings, especially when purchasing in bulk. They can source a large quantity of products at a lower price, which can be advantageous for businesses looking to offer promotions or for individuals looking to stock up on certain items.

Job lots also contribute to the overall efficiency of the supply chain. By consolidating products into larger bundles, sellers can streamline their operations and reduce costs associated with packaging, handling, and shipping individual items. Additionally, job lots can help reduce waste by finding buyers for excess inventory, minimizing the need for disposal or write-offs.

Overall, job lots play a role in improving inventory management, offering cost savings, and facilitating the movement of goods within the market.