September 28, 2011

Three Ways to Recover Value from Surplus Inventory II

Part Two of Series: Consignment

In our last post, we discussed the benefits of using an outright buy option to recover value from your surplus inventory, which includes finding someone to buy obsolete parts. Now let’s take a look at the consignment option. To simplify, we will start with a comparison.

In the last decade, consignment shops have become a popular way for families to resell expensive and unused child-rearing gear that they no longer need. The family leaves the unneeded items in the consignment shop. If the store is able to sell the items, the family receives a percentage of the sale. Buyers are delighted to find valuable items for less than retail cost, and the family is pleased to recover value from the unneeded items with almost no effort.

Consignment of surplus electronic components works very much the same way. If you find yourself with excess electronic parts, but you don’t think that you can maximize its value through an outright sale, you can consign the products to Converge. We receive, reconcile, inspect, and stage the products, while your company retains ownership, complete visibility, and control of each line item – down to the resale price if you choose. Then our commodity experts put their
market intelligence to work for you, scanning the globe for buyers who may need the parts you have in surplus. When we find a buyer, we take care of the details. Then your company gets the majority of the proceeds, which enables you to recover a significant amount of value from items that otherwise may have been scrapped.

The consignment option is very similar to Converge’s third option for recovering value from surplus: taking advantage of our leverage program, also known as “demand” opportunity. What is the major difference between the two, and which option would work best for your company? We hope to answer those questions in Part Three of this Series: Consignment. 

If you missed Part One: The Outright Buy you can read it now.

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