Expectations in the aftermarket
ESTABLISH YOUR PRIORITIES FOR SUCCESS
When analyzing your company’s need in the aftermarket, always prioritize these 3 factors
In an ideal world, a company would be able to manage a very quick sale of inventory with very little labor and receive a very high recovery. Unfortunately, that isn’t always possible. When analyzing your company’s need in the aftermarket, always prioritize which of these 3 factors is the most important to you.
1. VELOCITY
Getting the inventory out of your warehouse quickly is a top priority for most companies. In a high velocity sale, most companies do not have the means to put additional labor into their aftermarket sales. The buyers in the aftermarket are always out there looking for new sources of products. If you prove to be a consistent and reliable source, many buyers begin to trust you as a seller and become more loyal to your product.
2. LABOR
It is possible to see a high recovery without a significant amount of labor. However, more often than not, the more labor you can put into a sale, the higher the recovery will be. Labor does not always mean inspecting, testing, and grading inventory. It could be as little as ensuring the manifest is detailed and accurate when listing the products. If your company does not have the resources to allocate to this, you will be able to increase the speed of your sale process in the aftermarket.
3. RECOVERY
If your business is looking for a significantly high recovery, you may have to give on these other areas. When trying to gain the most money back on your inventory, it may be a slightly slower process. You may want to have a few people analyzing the inventory and testing out the products to determine the condition of it. If your company has the time and the resources to use for the aftermarket, prioritizing recovery is a great option.
Understanding the balance of these three components in the aftermarket will help your business manage expectations and make the best choices when selling on secondary marketplaces. Always weigh the options you have and determine which of these your business needs the most. Each carries its own weight and can impact different areas of the aftermarket.
