Most inventory liquidators will claim to offer “maximum returns” for your excess inventory, but the truth is, no liquidator can give you the “maximum return” because every inventory is different.
In most cases, getting a maximum return is really about efficiency, experience, trust, and getting the job done right the first time.
The first step for getting top-dollar from your excess inventory is to formulate a plan.
Never assume the buyer has your best interest at heart. And never assume they will give you the best price.
Even though the potential inventory liquidator will have their own plan, you should always have an idea of what you want before going into a deal.
If your situation requires special restrictions or your inventory is particularly brand sensitive, then you need to establish that going into the deal. Even if the buyer gives you the highest price upfront, if they put your brand in jeopardy or compromise your current sales channels then you still end up losing.
The next step in getting a high return is to know what your inventory is worth. A formal appraisal is a good starting point, but even then, the real value of your inventory is still determined by the market, not the appraisal. And as is the case with most distressed merchandise or excess inventory, the cost of an appraisal may not be worth the extra time and money.
For more information on how to determine this without an appraisal you can read my article, “How To Find The Right Inventory Buyer” for a more thorough explanation.
Also, when liquidating your inventory you have to consider additional costs like shipping, inventory removal, interruption to current sales, etc. By finding an inventory liquidator that provides those services or includes them in the price they pay for your inventory, you can add some room to your bottom line.
And the final step in maximizing your return is to factor in other indirect costs that could affect your bottom line as well. If you have extenuating circumstances like a store or warehouse lease that is about to expire or you’re in need of getting the inventory off the books by the end of the accounting period, that may take precedence over getting a higher return upfront. Again, the buyer with the highest price upfront may not have the resources to accommodate your circumstances, in which case you need to decide which cost is greater.
As you can see, price is definitely a vital part of the equation, but there are many other factors that can either add to or take away from your bottom line. Protecting your brand, getting quality service, and being able to trust the buyer to finish the job on time, are all just as important as the price you get upfront.
If you want to get maximum return for your excess inventory, learn how to minimize your losses. It might not sound as sexy, but when it comes down to it, by minimizing your losses, you really are maximizing your return.
To find out if we’re the right buyer for your inventory please call us for your
FREE inventory quote at 1-877-279-3353.
Hello,
We are considering liquidating our slow moving product. It is a produce preserver that has received a lot of positive feedback but hard to get into stores. Please review our product on our website and let us know what the steps for liquidation are. Thank you.
Sincerely,
Bianca Pigford