Liquidations and auction sales are used mainly by stores wanting to get rid of excess merchandise and get as much money for them as possible. Knowing the difference between these two kinds of sales can certainly help one make the right decision if a company is confronted with the need to sell property or equipment.
About Liquidations Sales: Liquidation sale is the procedure for marketing the assets of a company in an organized manner over an extended length of time to achieve greater values that are nearer to retail price.
Liquidation sales are just like store closing sales in that a special corporation might come into a store to sell off the rest of the extra inventory in bulk. They are usually lengthier sale processes, in which products are sold over weeks, months, or even several years.
The advantages of auction sales include:
1. Prospective buyer can drive price ranges up.
2. The Internet can attract bidders from around the globe.
3. Auctions often occur when an organization has excess products they want to get rid of.
4. Auction sales are fast from beginning to end. An auction deal involves the setting up of the equipment, the auctioning process, and the cleanup.
All of this may take no more than 90 days.
Competition amongst bidders is what decides an item’s value and sometimes there isn’t enough competition to drive a price up to the desired amount.
The primary benefits of organized liquidations include the following:
• Extended selling time. This allows wholesale suppliers to have plenty of time to find the best buyer for their products, which could often mean that they will sell for higher prices. Though, in most cases, they will settle for less in order to get rid of the product right away.
• The main advantage is the time frame: More time to carry out the sale means that there is more time to find the perfect buyers.
• Discussion between the seller and buyer determines what an item is sold for.
• Works more effectively for more customized or unique products. Often there are minimal buyers for such products; liquidation sales provide sellers with the time to locate buyers.
For this reason, if you are a buyer you should provide the companies in your area with your personal information so that they come to you whenever there is a liquidation sale about to happen.
It is an effective way to sell off resources from a factory once most of the items have been bought. Both kinds of sales work effectively to help restore assets. For buyers, a liquidation sale would be the best bet when it comes to making money since an auction might drive the price way past the amount you are willing to pay. checkout latest news at http://www.theindychannel.com/news/local-news/gander-mountain-begins-liquidation-store-closing-sales-at-all-126-stores-nationwide
Liquidation sales do have a downside, though, in that products must be stored on site until the sale. Liquidation sales are best for buyers since they will be able to grab merchandise for only a fraction of the cost they would get it for at an auction. After most of the items have been sold through the liquidation process, equipment and office supplies/equipment are often sold at an auction.Comments Off on The Difference Between Auction Sales and Liquidation Sales