According to the Investment Recovery Association, the average company carries between a 15% to 20% surplus.
This inventory could include equipment, machinery, vehicles, or real estate. Having an excessive amount of inventory can be costly to your business's profits. If you've never had this issue before, you may not know how to get rid of all your surplus equipment.
No need to worry; we are here to help. This article will give you seven ways that you can quickly sell surplus equipment, so your business can continue to grow and be profitable.
1. Remarket
If you've been trying to sell your industrial equipment for a while without success, you need to look at your marketing strategy. The issue may not be with your inventory. There's a good chance people are looking to purchase equipment but aren't able to find where you're selling it.
If no one has contacted you to purchase your oil and gas equipment, you may not be selling in the right areas. Your target customers may not be seeing your products for sale. In that case, you may want to reach out to an expert in marketing who has more knowledge on how to advertise equipment.
2. Apply Discounts
People always want to find the best deal possible. If you're still having a hard time selling your surplus equipment, consider lowering the price. It's important to think through this decision before slapping a discount on it.
Being strategic is crucial. Start with a low discount; you don't want to lose too much money.
Running a flash sale can also be beneficial. It will make your customers feel as though they have to make a quick decision.
3. Online Auction Site
Another great way to sell surplus equipment is on online auction sites. An auction site will allow you to reach a large audience of buyers.
Once your equipment is listed, people will be able to bid on your inventory. If it gets multiple bids, the items will go to the highest bidder.
It will be beneficial to post your equipment on an auction site that sells other equipment similar to yours. Your equipment may not sell as fast on an auction site that sells mostly furniture, cars, and home decor. You'll get more bids and offers if the right audience is seeing your items.
4. Contact a Scrap Dealer
If your equipment isn't functional or if it's broken, it can be even more difficult to sell. It may not be worth your time and money to have it repaired, only to turn around and sell it.
You may be surprised to learn that you can still make money on your broken inventory. A scrap dealer will give you money based on the type of metal your equipment is and how much you have. Be sure to talk to multiple scrap dealers in your area to make sure you're getting the best deal.
5. Bundle Items
If you have a lot of inventory, you may want to consider bundling some of the items together. The inventory that you bundle should be priced so that they are cheaper to buy together than separately.
This strategy will allow you to make money and get rid of multiple prices of your inventory at a time. It's efficient and your client will get a good deal as well.
You can even bundle some of your fast-moving inventory with slow-moving items. This will allow you to sell products and get rid of inventory that you no longer want to store or need to get rid of.
6. Sell Online
Selling equipment online, outside of an auction site is another option. If the market in your area is slow, there may be other areas where the need for equipment is higher. You won't be able to access the entire market if you don't sell online.
If you've been putting off making a website or posting your excess inventory online, now is the time to do it. You'll be able to reach more people and sell your equipment faster.
7. Raffle It Off
If you're still struggling to sell your inventory and need to get it out of your warehouse quickly, you may want to consider raffling it off. Your customers have the chance of winning the equipment and you can raise money for a good cause.
If you donate the money from the raffle, you won't be making money directly, but you'll be able to get a tax write-off. It's effective and you can get a federal income tax deduction.
8. Return It
If you've ordered too much inventory, or it's not selling as fast as you predicted, reach out to your supplier.
You may be able to return or exchange some of the equipment.
9. Liquidation
While it's not ideal, you can get some money from liquidation. There are companies that will buy bulk inventory for a discounted price.
You likely won't get the full price, but it's a quick way to get rid of all your surplus items. Try to sell your surplus equipment before choosing this option. However, if time isn't on your side, keep this in mind.
Sell Surplus Equipment
Getting rid of your surplus industrial inventory can be overwhelming. If you've never sold items online, it can take time to learn, but the tools above can help you.
Your surplus inventory is likely costing you a lot of money and space. Don't waste any more time; our team can help you sell surplus equipment quickly. Contact us today to get started.