Your Excess Inventory can Increase your Bottom Line. Here’s How
Is your company’s bottom line in need of a boost? See that excess inventory lying idle in storage? That’s exactly where your boost lies. It may not be the ultimate treasure chest from a sunken ship, but it sure can go a long way in boosting your bottom line. For that to happen, however, it requires perfect timing and excellent strategy – two often missing key ingredients in asset disposition.
So, how do you know when is a good time to unlock that hidden value, or which strategy will maximize your returns?
To many, a company’s approach to managing damaged assets, surplus inventory, or end-of-life assets is a liability in terms of the cost of doing business. You probably share the same opinion, but truth is, these things could be an untapped source of revenue.
The tricky part (and what dissuades some) lies in the fact that you need to unlock that value while minimizing what could be costly employee time, as well as preventing mismanagement of those assets. The simple solution to this dilemma is to simply assign the task to someone who has all the cheat-codes to turn the game into child’s play: a trusted recovery solutions vendor.
Following then ere are simple ways you can unlock the value of your surplus equipment.
Tap into Online Secondary Marketplaces for Resale
Few businesses have the time to focus on having a branded online sales channel because let’s face it, it’s poor use of employee time. A savvy business move is to partner with a third-party provider who knows which disposition channel will yield the highest return for each type of asset.
Online channels such as Amazon, eBay, Rakuten and more are good options. But your provider of choice matters a great deal because in this business, reputation matters. Potential buyers are likely to take them more seriously (and even willing to pay more for products based on research) thus drawing significantly more traffic to their storefront. And this only could mean one thing: more chances of a successful sale.
Repair and Refurbish Smarter
The asset recovery services provider you decide to go with should not be limited in terms of the service they offer. They should also be in the business of repair and refurbishment of assets given not every equipment coming in is in tip-top condition.
Refurbished assets also tend to yield the highest returns. In fact, they can increase the value of your old equipment by up to 50 percent.
Choose a provider within your vicinity to minimize freight and labor costs.
Be on Top of Customer Service
Should you opt to go it alone, remember that your customers’ buying experience in the secondary market is as influential to your business image as doing it through traditional retail channels.
Whoever is tasked with dealing with your online resales should bring their A-game to customer service because as you are aware, the Internet these days can go hard in terms of damning your reputation. In a snap.
Recycle Smarter, Save Money
Equipment that has reached its end of life is often left idle in storage or needs to be disposed of. Now, when it comes to disposing assets, the process needs to be above board because other reasons such as good ethics aside, there are fines and penalties imposed for anyone who doesn’t properly handle and track their activities.
Businesses today need to work with an asset recovery company that can, among other things, guarantee greater transparency, data security and compliance with regulations whose floatation could see them [the businesses] incur fines should they be found out.
Opt for a recycling service that can retrieve value from grossly damaged assets and dispose of the balance in a responsible manner.