Liquidation Makes Good Business Sense

All business acquire an inventory of merchandise that will not sell.  It might be overstock of very slow moving items, carton damaged or old stock that is no longer carried.  Some companies try to liquidate these items by setting out a clearance table, mark the prices down, and hope they can get them out of inventory quickly. 

What generally happens, however, does not make good business sense.  The company ends up distracting the customers that enter the shop (albeit the brick and mortar shop or the e-Shop) from their higher margin new stock.  The customer then compares the values of your current product line versus the artificially discounted clearance items, and more often than you would like, choose the marked down item.

You can not get back on-track, marketing the products you choose to market, until the clearance table has been cleared.  You have cannibalized your own margins to get rid of your old inventory. 

A Better Idea!

How would you like to liquidate your old stock, carton damaged items, customer returns, old inventory and overstocked items by selling them to customers who do not come into your store?  How would you like to offer these items to prospects who you do not have access to your store, and you, in effect, end up taking customers away from your competitors. 

You have now removed from your store any distractions to those who come into the store.  You can focus on, rather than defend, the product mix you have selected.  You have removed any alternatives against which your customers can compare your product line. 

There are other benefits you will notice. You will have more shelf space available in your store. Your warehouse is less cluttered. 

In the end, assuming the current product line is an improvement over the old stock, you have just performed a service to your customer.

Liquidation by Third Party Liquidators Accomplish This Goal

Using a liquidation service company, you can choose which products you shed from your inventory list and which fit into your business model.  Often you have options as to how you will be compensated - either out-right purchase of the old inventory or to receive a percentage of the final value recovered by the liquidation service.  See more on how to go about liquidating your inventory.