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Asset Recovery: Methods for Selling Surplus

Managing capital assets is only half of the coin. After organizations determine which equipment and assets are no longer needed and which can be redeployed internally, they must then focus their efforts on selling their surplus assets.. Business leaders and managers will need to work with a trusted partner that has established marketplaces in order to recover the maximum amount of revenue initially invested into the resources.

How does a company choose the best partner? It looks for experience and proven results. The reverse supply chain partner must also have a wide range of marketplaces and a diverse group of buyers.

Liquidity Services utilizes a wide range of strategies to ensure your surplus assets are sold through the right channels to the ideal buyers for the highest recovery value. Every year, our various marketplace websites generate an average of 23 million unique visitors and nearly 800 million page views. This ensures that every item reaches the audience it deserves.

Liquidity Services has the expertise and partnership capabilities to rapidly and consistently transform your surplus assets into a value-add for your business. We sell your surplus assets through several targeted sales methods – or a combination of these methods – to achieve the highest possible recovery value, ranging from conducting live webcast auctions of transportation assets to online sealed bid events for surplus machinery. These proven methods have resulted in an 80 percent repeat buyer rate across our best-in-class marketplaces, including:

1. Online Auction (Unreserved)
An unreserved online auction is designed to sell assets to the highest bidder. Much like in-person auctions, any buyers from around the world can visit one of Liquidity Services various online marketplaces and find surplus assets for sale. A countdown timer informs the consumers and businesses when the auction is set to end – similarly to other online auction processes – and when time expires, the individual or company with the highest bid wins the product.

This sales method is best suited for assets that are a commodity or in high demand on the secondary market. It is also the preferred method for organizations that need to sell their surplus assets in a timely and efficient manner.

Online auctions reduce stress and optimize results when selling surplus capital assets.

2. Online Auction (Reserved)
Reserved online auctions are similar to unreserved, as buyers will visit one of Liquidity Services’ online marketplaces and place bids until the timer reaches zero. The difference is that these online auctions include a minimum acceptable price, which is determined and agreed upon between the seller and Liquidity Services before the auctioning process begins. We work to identify the appropriate reserve price that represents the minimum acceptable amount, and not the expected final auction price.

Reserved online auctions are ideal for enterprises with high-quality or valuable surplus capital assets. Sellers choose this auction method when the demand for the specific item or products is smaller, and it ensures that the seller maximizes return on investment.

3. Private Sale Catalog
Private sale catalogs offer buyers two options when purchasing non-commodity assets: “buy it now” or “make an offer.” The items will be priced at or very near the expected high-end retail value, guaranteeing a good deal for the seller and the buyer. If an offer is below a pre-approved sale price (i.e. lower than the “buy it now” price), it will be presented for the sellers consideration and only closed with approval. Items can be withdrawn at any time if the selling organization wishes to keep the item, and Liquidity Services will not issue a penalty.

This type of online auction is perfect for assets with low demand but high worth in both the buyers’ and seller’s eyes. Choose a private sale catalog if there are some surplus assets available for sale, yet no pressure to recoup the investment immediately.

4. Online Sealed Bid
An online sealed bid event is much like a traditional sealed bid event, meaning that once an asset is posted to a Liquidity Services affiliate online marketplace, buyers submit their offers before a predetermined deadline. No prospective buyers know what the offers are currently like, driving the value of the items higher. Once the deadline passes, the bids are collected, tallied and presented to the seller for approval.

Online sealed bid events are valuable auction processes for a variety of sellers and situations.

The digital gavel isn’t dropped until the deadline passes with online sealed bid auctions.

5. Live Webcast Auctions
Like the name suggests, live webcast auctions take place in real time. Buyers can bid either on the online marketplace’s website or in person at a live event hosted onsite. These auctions can be viewed on the respective website and are ideal for transportation assets.

When it’s time to sell your surplus, our multi-channel marketing and sales strategies, customized methods, and nearly 3 million registered buyers worldwide ensure maximum investment recovery for your organization. We recommend and implement the best sales solution based on your timeframe, asset pricing expectations and our current market intelligence.

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