Liquidation company: how to pick the right one3 things to look for retain value and reduce cost
Liquidation, for whatever reason, is a necessary part of any operation. No matter the reason for a liquidation project, the goal is to retain as much value as possible for the assets and inventory in your locations. Not every liquidation project is created equally. The same goes for liquidation companies. When choosing a liquidation company there are a few factors that come into play:
What Needs to be Liquidated:
This includes things like furniture, equipment, fixtures, appliances, shelving, and other physical assets inside your locations. All of these assets have a value, whether they are re-sold or recycled.
If you are a retail operation, inventory liquidation is a critical aspect of any liquidation project. No matter the reason for the liquidation, your number one goal is to retain as much value for your inventory as possible.
Types of Liquidation Projects:
- Single Site/1-Off
Single site liquidation projects are things like store remodels, refreshes, or closures. These liquidation projects need to be custom-tailored for each individual location.
- Disaster Recovery
In the event of a disaster, a liquidation project needs to focus on what can be saved and what needs to be disposed of. Even in the event of disposal, assets and inventory can be recycled or re-used, as opposed to being landfilled.
On-going liquidation projects include things like planned store remodels. If you have a large number of locations, each individual location becomes its own challenge to retain value.
Choosing a Liquidation Company
No matter what it is that you need to liquidate, or what time of project it is – there are some VERY important aspects of a liquidation company that need to be considered. The difference between maximum returned value and losing money always boils down to how the liquidation project is handled. The three things you need to really pay attention to are:
- Find a Company that Understands Your Operation.
Every business is different. If you are a retail store, you need a liquidation company that understands your specific industry. Emptying an office building isn’t the same as liquidating a store. There are a lot of liquidation companies out there that fit into a specific niche, so make sure you’re choosing a company that understands what it is your business needs. This is especially important for disaster recovery liquidation projects because time becomes a major factor. The more a liquidation company knows about your operation, the faster they can help you get your locations back up and running.
- Find a Company that Understands the Markets of what it is You’re Liquidating.
Just as every business is different, every asset is different. There are markets out there for just about anything that can be sold, so you need to find a company that understands these markets and has the tools and experience to work in those markets. Any good liquidation company will already have a network of buyers ready to go for whatever it is you are liquidating, have understanding of the prices you can expect on your liquidated assets, and a logistical plan to get those assets moved.
- Find a Company that Thinks Outside of the Box
Every liquidation project is going to have its own set of challenges. Finding a company that can navigate those challenges is especially important. Not every liquidation project is going to fit into a mold, so you need to find a company that has experience with things like recycling as donation, as well as re-selling. Also, when it comes to asset liquidation, there is always an opportunity for those assets to be used in other locations. Developing an internal market for those assets helps you retain their value. Developing alternatives to standard liquidation practices takes experience and insight to the industry – so choose wisely.
Why 1GNITE should be Your First Choice in ANY Liquidation Project
Over the years, 1GNITE has worked with some of the largest retail operations in the country to develop programs that can handle any liquidation project they have faced. From disaster recovery to ongoing remodel and refresh projects. We understand the used asset markets, we understand inventory liquidation, and we have developed programs that work in any setting to maximize returned value.
On top of our liquidation experience, we also have programs to handle disaster recovery, internal marketplaces, ReCommerce, and other challenges that major retail operations face.
Contact us today, and let us get started on your next liquidation project.