| There are many different ways to reduce your surplus | | | | the impact to both your sales channels and your brand |
| inventory but one of the most popular methods is a | | | | image. |
| liquidation auction. This can have its benefits but also its | | | | Costs may be higher when using a liquidation auction |
| drawbacks. This article explains why you may want to | | | | too, because the auction is in effect the middleman. |
| go with another option rather than a liquidation auction | | | | Not only are you paying a percentage to the auction |
| to dispose of your surplus inventory. | | | | house, but you're also paying for the auctioneer and all |
| When using an auction, especially online, the perception | | | | other expenses. |
| is that your goods can be moved relatively quickly. | | | | If this raises doubts in your mind about a liquidation |
| There are no guarantees though and it may take | | | | auction, there are other methods that can work better. |
| awhile for your inventory to turn over. Meanwhile, your | | | | One of the best is to use a liquidation company. A |
| capital is still tied up in assets that aren't moving. This | | | | liquidation company is quite different from a liquidation |
| hurts your business because you may not have the | | | | auction as listed in the points above. |
| resources available to take advantage of other | | | | A liquidation company usually pays cash up front, |
| opportunities until this inventory is sold. Keeping up with | | | | which means you're not worrying about how long it |
| the liquidation auctions can be very time consuming as | | | | takes to sell your inventory. There's also the added |
| well. | | | | assurance that your inventory is sold through |
| With a liquidation or online auction, you also forfeit | | | | protected channels so that you are not putting your |
| control of the sales channels and brand control. Bidders | | | | pricing or brand at risk. Also, you can deal directly with |
| for your problem inventory could potentially become | | | | a single company so you can cut out the cost of a |
| your competition. Not only would this hurt your sales, | | | | middleman. Working with a trusted liquidation company |
| but it would jeopardize the integrity of your brand as | | | | solves many of the problems that a liquidation auction |
| well. With such little control over how your inventory is | | | | can pose. |
| sold in a liquidation auction, you have to be aware of | | | | |