Liquidation is basically the method of vending a company’s inventory usually at a discounted price to make cash. Liquidation is required mostly in case of the closing of the company when they want to sell the products as quickly as possible. They often have to sell at a lesser price than the original price of the product. Inventory liquidators buy the excess items for re-selling. In case of choosing a liquidator, certain things should be kept in minds such as knowing the actual value of the merchandise and the value you want to offer.
There are times when your stock is excess and maybe you are running out of shelf space or you need newer versions or maybe the items are not being sold enough. This is the time when you need to liquidate your inventory.
For that purpose, you need to cut down the price to attract enough customers. You can discount your products by percentages you want or you can start an offer. For example, you can start ‘buy one get one’ offer and do aggressive marketing to get better prices.
The second thing you need to do is to change your display. You can gift your unwanted inventory to customers who invest more amounts in your shop. Gift the products free with a purchased product. A helpful option can be using online marketplaces. Either you can start an auction model where you will set the lowest price that you can accept or you can set a fixed price.
In case of a fixed price at first, you need to research well about the prices offered by other sellers.
You can sell your excess inventory to an inventory liquidator. This is specifically recommended if you have a huge inventory to get rid of as soon as possible.
Sometimes you may face a loss but you will be able to generate cash fast and make space. In this case, you can also maintain the brand reputation of your company to the customers. You can start bundling and gather different types of items to sell them at an overall discounted price. If you cannot sell products at all then you can donate them to market your brand.
There are several ways a company can follow to liquidate its inventory. It can sell those to its distribution channels that have always been a part of the company. They can cut down the prices so low that the buyers cannot refuse the offer.
This process may be time-consuming and may require more time to get the cash. Liquidation can be an excellent opportunity for a buyer to get products at lowest prices. A seller must discharge all the expired or unusable items and offer only good staffs.
In case of services, appliances, and fixtures, warranty and service records are needed. They must prepare a list of all the inventory items including their pictures and a little description. Splitting the inventory can be a good opportunity to get maximum revenue. That’s how liquidation helps to make money from excess inventory.