Inventory management is the most important part of a business. Most often the managers of the company face the dilemma to deal with the extra inventory. Due to the change of the taste of the customers, new products launch, season change, etc. other reasons, the manufacturers can’t use all the inventory. Moreover, it takes space, maintenance, and other so much expenses to maintain and keep the inventory. For this reason, the manufacturers need to liquidate the inventory. The company which buys this type of inventory is called the . They buy the inventory from the different type of company at the low price, and after processing those, they sell it at a discount price.
While a company is about to liquidate its inventory, it has to look for the certain factors about its inventory. Though the additional inventory is the burden for the company, it should be sold at low price. The company needs to find out a god deal, and if possible the company can sell the product at a discount price. Few of the things a company should consider before liquidating the inventory. These are:
Take an accurate measurement of your inventory:
Before offering the inventory to other, you should take an accurate measurement of your inventory. Your ledger book may not show the right measurement of the inventory. As the inventory is unused that too for many days, many calculations may be lost. For this reason, you should calculate and match the balance of your inventory.
Fix an estimated price:
After taking the measurement, you should fix an estimated price for the inventory. You can’t do it considering the current market price. You should estimate the price, below the average market price otherwise you may lose the potential buyers. There may be a different unit price for the different product. If your product category is not same, you may estimate a lump sum price for all products. Some companies also sell their products at a bulk price and its call sell inventory.
Find the best inventory liquidator:
After estimating a price for the product, you should find out a good and renowned inventory liquidators. It is important to deal with the best inventory buyer if you desire to get the good value for your inventory. Most of the buyer do not agree to pay a large amount for the inventory which is backdated. Companies sell their products at the minimum price. Sometimes below the cost line. So the inventory liquidator also needs to propose a deal which will be beneficial for both parties. Manufacturer companies can search online for the inventory liquidators. There are many available options for the inventory buyers.
So these are most important things a company should consider before liquidating its inventory.