A common misconception regarding inventory liquidation is that it’s a last resort of companies who are either going bankrupt or deciding to shut down for a multitude of other reasons.
However, liquidating your inventory can actually be beneficial for your still up and running business. It can help you smooth out the bumps and bottlenecks in your supply chain and improve your cash flow.
What is inventory liquidation?
Liquidation refers to the process of selling a company’s inventory in order to recover the capital that was invested in these assets.
Why does a company liquidate?
As mentioned, liquidation often happens when a company is about to close or has an urgent need to pay off its debts. Before they’re able to do so, their remaining inventory has to go somewhere. Liquidation helps get rid of these excess resources, usually by selling it at typically big discounts in order to generate revenue. This is called a liquidation sale.
However, companies may also take the liquidation route as an avoidance measure towards unprofitability.
Why should I partner with a liquidation company?
In-house liquidation, without the proper know-how, manpower and infrastructure to implement it, can quickly become counterproductive, eating away at resources that may leave you worse than when you started.
This is where liquidation companies come in. Their expertise can help simplify and quicken the liquidation process so you can focus on running your business and gain more confidence that you will recover a significant value from your remaining inventory.
How does a liquidation company help your business?
If your business needs to free up storage space, access capital tied up in slow moving goods or generate value from merchandise that may be difficult to sell, then liquidation is a viable route to take.
A common problem encountered by merchandise-based companies is figuring out what to do with their excess and aging inventory, dead stock, or returned orders. All of these are types of inventory that take up valuable storage space which could have otherwise been allocated for new products or faster-moving goods. They also increase your inventory-related costs including labor, security measures, insurance, and maintenance to keep these items in good condition.
Partnering with liquidation companies can help take off some of the burden of figuring out what to do with these items. Tapping into their knowledge and experience can help you sell your inventory with great success through the following processes:
- Evaluation. Liquidation companies will inspect your inventory to figure out its value. Afterwards, they will aid in pricing these accordingly.
- Selling. Liquidation companies usually have their own distribution channels and network of partners. This expands the market for your merchandise.
- Returned value. After making a sale, your business is able to recover a substantial amount of value from the merchandise due to the thorough and competitive pricing strategies implemented during evaluation.
Another situation where partnering with a liquidation company can be beneficial is during business relocation. If you are downsizing your warehouse space or moving your base of operations, working with a liquidation company can make your relocating process easier by taking those excess assets out of your hands so you can focus on more urgent matters related to your big move.
Lastly, liquidation companies don’t just help businesses sell products—-they also help them acquire it. If a business needs to purchase wholesale items that are simultaneously high quality and affordable, these companies can match buyers to the businesses that carry the merchandise they are looking for.
Overall, there are multiple benefits that arise out of a partnership with a liquidation company. However, finding the right one that matches not only your business’ needs but also values can be challenging.
That’s where Humble Sustainability comes in.
Meet Humble Sustainability
Humble Sustainability is a liquidation company in the Philippines with a purpose. They help companies recover value from their returned products, excess stocks, items with damaged packaging, and aging inventory while simultaneously saving these items from ending up as waste in landfills.
Through their environmentally-friendly, tech-driven, and customer-centric approach, Humble has already helped their network of clients recover anywhere from 15% up to 80% of revenue (depending on item condition and inventory depth, among other things).
Their business model offers a win-win solution: companies get a chance to recover their investments from their unsold inventory, buyers get access to high quality products at a fraction of the price, and our environment receives less damage as these items are diverted from landfills and no additional resources are extracted to produce newer items.
Start selling with Humble Sustainability
Make your returns and excess inventory the hero or buy sustainably-sourced items in bulk. Start your business’ sustainable journey with Humble Sustainability today!
Send us an email: team@humblesustainability.com | Contact us through mobile: +63 915 573 9111 | Our warehouse: 664 Sgt. Bumatay St. Mandaluyong City, Metro Manila, Philippines | Join The Humbler Community