4 Smart Things to Do With Excess Equipment
Most businesses dealing with the coming and going of market trends will be all too familiar with surplus inventory. Excess equipment can be a double-edged sword. On the one hand, you have equipment handy to use later or if market trends change again.
On the other hand, so much stock lying around can take up precious storage space as well as use up manpower to organize it. If your assets are no longer giving you value-for-money, it’s time to get rid of them.
If you want to save money, labour, and storage space, then stop maintaining old bulky equipment and consider how you can dispose of these items easily and efficiently. Here are 4 smart ways to get rid of excess equipment:
1. Private treaty sales
Many businesses are not aware that it is possible to sell back your equipment to the distributor or manufacturer you bought it from. Many equipment manufacturers are in the business of buying back their own used equipment and refurbishing it for resale. You can also contact other companies similar to the manufacturer to generate interest in the unwanted equipment. This is a harder sell as some companies will not do business with competitors.
2. Auction off the items
Auctions are a great way to sell old assets, particularly high-demand assets. Not only will you be able to sell more items at once, but you will also get your money upfront. If you’re dealing with more than just surplus stock, industrial auctioneers will help you gain back value through their years of experience and networks across different industries.
Auctions are beneficial also because they put the buyer in control, increase visibility and are a convenient way to sell items in bulk. Instead of dealing with an individual client for a specific sale, auctions allow you to meet multiple potential buyers according to your schedule. Working with professional auctioneers will help take your sales one step further because you will be able to leverage their industry contacts for increased visibility and raise your profits.
How auctions generally work is that the company will set up a minimum value for the items, and then buyers match the minimum bid or raise it to ward off competition. Thus, auctions can recover more value from the sale of used items as compared to a private treaty sale. The seller also has the power to set the terms of the auction, including payment and the time period of the auction.
3. Warehouse liquidations
Asset recovery is essential for businesses looking to monetize their used equipment or surplus stock. Warehouse liquidations are a great way to do this. This method involves liquidating general equipment used in commercial and industrial applications. There are two kinds of liquidations:
- Forced liquidations: The financial instability of a business will lead to a forced liquidation sale. It involves the forced or involuntary sale of assets and thus usually has much lower financial returns than some of the other options.
- Orderly liquidations: This is the preferred method to recover value from unused assets. Unlike forced liquidation, orderly liquidation allows the business to take control and decide what equipment to sell as well as the format and price ranges for selling it.
Liquidating companies specialize in managing the process for businesses from start to finish. In addition to discarding and disposing of ageing and malfunctioning equipment, liquidators will also find the right buyers and take care of the transition to new and advanced warehouse equipment with minimal disruption to important operations.
At Michaels Global Trading, our warehouse liquidation services also include dismantling, packing and preparing decommissioned equipment for shipping. Quality assurance is handled with a thorough inspection and the repair or reconfiguration of equipment to maximize profits is also guaranteed.
4. Consignment sales
This method of dealing with excess equipment involves a third party who will help you move the equipment. The third party is typically a professional seller who has industry experience in selling the kind of equipment you wish to sell. For example, some sellers specialize in conveyors, processing equipment, racking, packaging etc.
After choosing which items from your inventory to liquidate, the third party or consignor will move the items. It is then the consignment professional’s responsibility to decide on the most effective sales channel. Professionals use their industry knowledge, contacts and resources to make the sale for you and will hand over an agreed-upon percentage of the profits as well.
It is important to note that in consignment sales, the owner never loses ownership of the items until they are sold, i.e. the consignor is never granted ownership of the items even though they are responsible for the sale. This grants the seller more freedom in case the items are unable to be sold, as well as control in case the sale does not go through.
To conclude, just because your excess stock and surplus equipment are gathering dust does not mean you can’t monetize them! You can always find ways to recover the value of your assets and dispose of them to clear space to make way for new items, and even recover some profits. Consider your options carefully and decide how you want to handle this. You can always reach out to our team of professionals for a consultation on the type of warehouse liquidation that works best for you.
If you would like to know more about what to do with surplus equipment, call Michaels Global Trading today at 888-471-5066 or contact us here.