For most small business owners, the idea of ​​a liquidation is gruesome and grotesque. The mass media describe their general ideas associated with liquidation in their brain: Bankruptcy reads on the front pages of newspapers, tickers drift to the bottom of their televisions with exponentially increasing debt figures, and small businesses place Bold neon-colored signs of ‘CLOSING SALE STORE’ urgency. With the economy in its current state, it’s not hard to fall victim to all the hype. [and scare]. However, the media does not acknowledge the rest of the liquidation business; The beneficial business strategy of liquidation: convert your obsolete, surplus, recall, returns, and surplus inventory into immediate, initial, usable cash.

There are two main forms of liquidation: mandatory and voluntary. When you hear about liquidation in the media, it is mandatory liquidation, which is when you are obliged to liquidate by law. Mandatory liquidation is the last resort for a business. It involves selling all aspects of the business, from your inventory to your debts. When a company is in mandatory liquidation, it is closing its doors forever. The last form, voluntary liquidation, is the unspoken strategy frequently used by all Fortune 500 companies. The top companies in today’s economy are those that liquidate inventory every day. Today we will discuss some of the benefits of voluntary liquidation and how applying this strategy to your business model will benefit you both immediately and in the long term.

Whether you manufacture goods, retail, or are a distributor, inventory management and control is key to running a profitable business. Your average consumer looks at a retail operation and is impressed by a large and vast inventory of merchandise. The truth is, these businesses with large inventories are the ones that face the greatest risk. A large inventory also carries the burden of huge maintenance costs. Inventory should NOT be the largest capital asset of a business. An efficient company that changes its inventory correctly should not use more than 1/3 (one third) of its usable cash to buy merchandise. Even with proper inventory management, problem inventory is unavoidable: errors occur in the management system, physical inventory is not done regularly, and purchasing mistakes are made, to name a few. With that said, when these inventory problems do arise, a reputable liquidator could be of valuable help when the time comes to resolve these inventory problems.

So how can a reputable settlement company help you?

1. Receive CASH For your obsolete and excess inventory

Every business reaches a point where it has some kind of excess inventory: seasonal items like Christmas decorations or even clothing are only sold for specific periods of time, food and consumer goods become short. Or they expire, technology and fashions change, so does your inventory of corded phones. Sometimes consumer spending drops and you’re left with merchandise that just won’t sell. Regardless of the merchandise, it is costing you storage and maintenance fees, rather than making a profit. A reputable liquidation company specializes in converting these excess and obsolete inventories into immediate, usable capital.

2. Brand protection

Many people insist on destroying their branded merchandise (which costs a penny), rather than letting it reach the secondary market. A professional and established liquidator will know how to properly control your brand sales without damaging your image or name.

3. Channel

The last thing you want to see is your recently liquidated merchandise competing against you in your own market. In addition to protecting your brand, a reputable settlement company also controls where the product goes.

4. NO TERMS – IMMEDIATE CASH

Perhaps the most important and attractive incentive a liquidation company can offer is the ability to convert inventory [of all types] immediate cash. Paying off and taking on a small loss quickly will save you a substantial amount of money overall compared to keeping merchandise until its last resort – depreciation, storage, labor, and maintenance.

As you can see, the sale is not as bad as the media makes it out. Just because you are liquidating or interested in the liquidation strategy, it does not mean that your business should be associated with problems. The secret behind the liquidation strategy is understanding exactly what it is and how using it in a proper and timely manner will save you money and frustration in the long run.

SELLinventory.com has been helping companies convert excess inventory into immediate cash for more than 25 years. For more information on settlement, call 1 (732) 591-8677.

Do you have inventory that you are looking to liquidate?