Utilizing a Liquidation Company As Part Of a Store & Inventory Liquidation Plan
When people think of liquidation they often think of bankruptcies, but in the retail sector these can consists of store liquidations, product liquidations, or both. While businesses in the retail sector may have avenues for dealing with product liquidations, they often turn to a skilled liquidation company for store liquidations.
There are many reasons why businesses liquidate stock ranging from customer returns, “shelf pulls” and “warehouse pulls” of products that for different reasons come back into their warehouse. The largest of these businesses have detailed systems in place for liquidating the stock quickly and at a premium return.
While large retailers often have a system of selling them by the truckload, other businesses are left to cobble together a solution based on scant resources and information about the process.
There are potentially many different venues in which to sell different types of products. Even still, businesses are often kept fully occupied with the process of breaking down the stock, receiving it, grading it, categorizing it and creating a detailed manifest so that it can be sold.
Store liquidation differs substantially from product liquidation, so businesses that must deal with both are essentially operating in two separate liquidation paths, which can increase the complexity of the process. Fixtures, furniture, business equipment, coolers and other items are often more difficult to liquidate for these retailers without incurring increased costs let alone being able to get some type of return on investment.
Of course, in cases where businesses have multiple locations and liquidating stores can stave off bankruptcies, the store liquidation process can be a strategic asset. Consequently, this calls for a different approach. In the case of sore liquidations where businesses are working to avoid bankruptcy, they may be able to:
- Close stores at different times
- Move inventory between stores
- Take different markdowns in different locations.
That still leaves the fixtures, office and business equipment as well as other items that cannot be absorbed into the business in any feasibly economic way. By working with a liquidation company, businesses can quickly deal with these items without having to devote human resources to the project. In addition to the liquidation company handling the process, the business also gets additional cash infusion to make the consolidation process go more smoothly.
While market, cash flow and other fluctuations that can put businesses in danger of bankruptcy will never go away, there are multiple options for managing the revenue and inventory impact these events create. By utilizing a firm that specializes in the liquidation business as a strategic and proactive asset as part of a larger strategy, retailers can have greater options. The goal is to have as many options as possible to ensure the restoration of as much value as possible that can be derived from the liquidation process.
Ideal Trading Corp is a liquidation company in New Jersey that offers services for businesses to convert their assets to cash. With extensive experience in commercial liquidation and auctioning, we provide outstanding results for business owners who are going out of business, facing bankruptcy and more. 973.343.6684 – Contact us today!