For most small business owners, the thought of liquidation is appalling and grotesque. The media depicts their general ideas associated with liquidating into your brain: Front pages of newspapers read bankruptcy, tickers scroll the bottom of your televisions with exponentially increasing debt figures, and small businesses stick up gaudy neon-colored 'STORE CLOSING SALE' signs that scream urgency. With the economy in its current state, it's not difficult to fall victim of all the hype [and scare]. Yet, the media fails to acknowledge the rest of the liquidation business; the beneficial business strategy of liquidation: converting your obsolete, overstock, salvage, returns, and excess inventory into immediate, upfront, and usable cash.
There are two major forms of liquidation: compulsory and voluntary. When you hear of liquidation in the media, it is compulsory liquidation, which is when you are forced to liquidate by law. Compulsory liquidation is the last resort for a business. It involves selling off every aspect of the business, from their inventory all the way up to their debts. When a company is compulsory liquidating, they are closing their doors for good. The latter form, voluntary liquidation, is the unspoken strategy that is used frequently within all Fortune 500 businesses. The top businesses in the current economy are ones that are liquidating inventory everyday. 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-run.
Whether you're manufacturing goods, retailing them, or you're 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 huge inventory also carries the burden of huge maintenance costs. Inventory should NOT be a business's greatest capital possession. An efficient business that turns their inventory properly should be using no more than 1/3rd (one-third) of its usable cash to purchase merchandise. Even with proper inventory management, problem inventory is inevitable: management system errors happen, physical inventory is not performed regularly, and purchasing errors are made - to name a few. That being said, when these inventory issues arise, a reputable liquidator could provide valuable assistance when it comes time to resolve these inventory issues.
So, how can a reputable liquidation company help YOU?
1. Receive CASH For Your Obsolete and Excess Inventory
Every business comes to a point where it has some sort of excess inventory: seasonal items such as holiday decor or even clothing only sell during specific time periods, food and consumer goods become short-dated or expired, technology and fashions change so your inventory of corded telephones. Sometimes consumer spending drops and you're left with merchandise that just will not sell. Regardless of the merchandise, it is costing you storage and maintenance fees, rather than earning you profit. A reputable liquidation company specializes in turning these excess and obsolete inventories in to immediate and usable capital.
2. Brand Protection
Many people insist on destroying their branded merchandise (which costs a pretty penny), rather than let it make its way to the secondary market. A professional and established liquidator will know how to properly control the sales of your brand without damaging its image or name.
3. Channel
The last thing you want to see is your recently liquidated merchandise competing against you in your own marketplace. Asides from protecting your brand name, a reputable liquidation 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] into immediate cash. Liquidating and taking a small loss quickly will save you substantial money overall in comparison to holding on to merchandise until your last resort: depreciation, storage, labor, and maintenance.
As you can see, liquidation is not quite as bad as the media makes it. Just because you are liquidating or interesting in the strategy of liquidation, does not mean that your business is to be associated with trouble. The secret behind the strategy of liquidation is to understand exactly what it is and how utilizing it properly and in a timely fashion will save you money and frustration in the long run.
https://merchandiseusa.com/ has been assisting businesses turn their excess inventory into immediate cash for over 35+ years. For more information on liquidation please call (888) 757-0060.
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