Recovery Value –  Unless you are selling collectibles (or paper towels during a pandemic), your inventory is not likely to appreciate.  And, outside of timing a sale for product seasonality, trying to time an inventory disposition to ‘the height of the market’ is not a realistic objective.  The fact is that most product values begin dropping the day a product is introduced to the market, impacted by everything from changing styles and fads to industry trends and technology shifts.  We are no longer living in the days of the IBM Selectric Typewriter, a product that served the market largely unchanged for nearly 2 decades.  Rather, today’s products incorporate technology that is old by the time the product first hits the shelves.  Products that were once basic mechanical devices like watches, light bulbs and door knobs, are now technologically driven with

Opportunity Cost – retailers know the value of every square foot of selling floor, and recognize the opportunity cost of filling stores with low margin or slow moving product. This kind of shelf space management, however, does not often persist at the wholesale or manufacturing level. But the premise remains the same. If the shelves are full and 20% is occupied by slow moving, excess product, the company is not likely operating a full capacity, or at the very least may be limited in its ability to take advantage of opportunistic purchases, product line expansions, etc. In addition, many companies will assigning excess product by quotas to sales teams.  This added pressure can take away from the time energy and attention these salespeople apply to main line products.

Resource Costs – some companies may not consider themselves missing opportunities as a result of their excess, solving the problem with annex warehouses or the use of storage containers in their yard. Are these additional costs, however, justifiable? As excess products accumulate, costs are often incurred to move them multiple times, rent additional space, conduct inventories and assign personnel to manage them without a clear and decisive plan.

Psychological Burden – One cannot underestimate the psychological impacts excess goods can have on an organization. How often is the excess discussed? How much pressure is on the sales team to sell it? How many times do warehouse managers have to juggle the goods or their thinking about the space it occupies. The mere suggestion or thought of excess can represent a significant psychological drain on management and key employees. Rationing and managing team energy can be paramount to company success in general, let alone during the Covid era. 

Recovery Value –  Unless you are selling collectibles (or paper towels during a pandemic), your inventory is not likely to appreciate.  And, outside of timing a sale for product seasonality, trying to time an inventory disposition to ‘the height of the market’ is not a realistic objective.  The fact is that most product values begin dropping the day a product is introduced to the market, impacted by everything from changing styles and fads to industry trends and technology shifts.  We are no longer living in the days of the IBM Selectric Typewriter, a product that served the market largely unchanged for nearly 2 decades.  Rather, today’s products incorporate technology that is old by the time the product first hits the shelves.  Products that were once basic mechanical devices like watches, light bulbs and door knobs, are now technologically driven with

Opportunity Cost – retailers know the value of every square foot of selling floor, and recognize the opportunity cost of filling stores with low margin or slow moving product. This kind of shelf space management, however, does not often persist at the wholesale or manufacturing level. But the premise remains the same. If the shelves are full and 20% is occupied by slow moving, excess product, the company is not likely operating a full capacity, or at the very least may be limited in its ability to take advantage of opportunistic purchases, product line expansions, etc. In addition, many companies will assigning excess product by quotas to sales teams.  This added pressure can take away from the time energy and attention these salespeople apply to main line products.

Resource Costs – some companies may not consider themselves missing opportunities as a result of their excess, solving the problem with annex warehouses or the use of storage containers in their yard. Are these additional costs, however, justifiable? As excess products accumulate, costs are often incurred to move them multiple times, rent additional space, conduct inventories and assign personnel to manage them without a clear and decisive plan.

Psychological Burden – One cannot underestimate the psychological impacts excess goods can have on an organization. How often is the excess discussed? How much pressure is on the sales team to sell it? How many times do warehouse managers have to juggle the goods or their thinking about the space it occupies. The mere suggestion or thought of excess can represent a significant psychological drain on management and key employees. Rationing and managing team energy can be paramount to company success in general, let alone during the Covid era. 

Dependent upon your specific need, ThreeSixty can offer any of the following to support an ideal remarketing solution…

– Live Auctions
– Online Auctions
– Orderly Sale Programs
– Fully Managed Solutions
– Collaborative Solutions
– Self-Implemented Systems Development
– Sale Process Advisory and Team Training
– Sale Promotion Marketing Strategies

Challenge: Major multi-national hardware brand desired a solution to move large volumes of refurbished product on a consistent basis through non-traditional channels.  Solution: Event based public auctions, using winning bidder quantity options, established an alternative channel which blended wholesale and retail recoveries, while ensuring complete sell through.  Collaborative product selection for each sale helped manage supply against demand to help maintain sale pricing.

Challenge: Major multi-national hardware brand desired a solution to move large volumes of refurbished product on a consistent basis through non-traditional channels.  Solution: Event based public auctions, using winning bidder quantity options, established an alternative channel which blended wholesale and retail recoveries, while ensuring complete sell through.  Collaborative product selection for each sale helped manage supply against demand to help maintain sale pricing.

Challenge: Major multi-national hardware brand desired a solution to move large volumes of refurbished product on a consistent basis through non-traditional channels.  Solution: Event based public auctions, using winning bidder quantity options, established an alternative channel which blended wholesale and retail recoveries, while ensuring complete sell through.  Collaborative product selection for each sale helped manage supply against demand to help maintain sale pricing.

Challenge: Major multi-national hardware brand desired a solution to move large volumes of refurbished product on a consistent basis through non-traditional channels.  Solution: Event based public auctions, using winning bidder quantity options, established an alternative channel which blended wholesale and retail recoveries, while ensuring complete sell through.  Collaborative product selection for each sale helped manage supply against demand to help maintain sale pricing.

Challenge: Major multi-national hardware brand desired a solution to move large volumes of refurbished product on a consistent basis through non-traditional channels.  Solution: Event based public auctions, using winning bidder quantity options, established an alternative channel which blended wholesale and retail recoveries, while ensuring complete sell through.  Collaborative product selection for each sale helped manage supply against demand to help maintain sale pricing.