home decor liquidators flooring

home decor liquidators flooring

Because of the multi-variant nature of problem inventory, and the many factors that inventory liquidators use to determine the value of an inventory, putting a real value on your merchandise can be a little tricky. 

Even if you get a certified appraisal first, your inventory is still only worth what the market is willing to pay.  And if the market is not willing to pay what the appraisers say that its worth, then your real valuation comes from the market not the appraisal company.  In some cases you may not have the time or resources for a formal appraisal; nevertheless, an appraisal is good for giving you a benchmark to work with.  You just have to weigh your options and decide if an appraisal is right for you at this time or not. 

Here are just a few things to consider when liquidating your inventory that could help to save you months of time, thousands of dollars, and many headaches along the way.  By understanding the elements that matter most in an inventory liquidation, and what your inventory is being graded on, you can position yourself for greater returns, and leverage your knowledge when it comes to the negotiation process.  By attaining this knowledge you can not only feel more comfortable with the process, but gain a new confidence that will help you to get a higher return as well. 

When appraising any inventory, there are many different factors that influence the value of a given set of goods.  In liquidation appraisal especially, these are the 10 most decisive variables in determining the resell value of your inventory, and by having this understanding you stand to get a much higher return than you would without. 

1. Nature of the product- The value will always vary from company to company simply because of demographic and geographic reasons.  A stock of snow mobiles in Denver are going to be worth much more than snow mobiles in Florida. 
2. The target end user and their demographic- If one buyer has a chain of retail stores and another buyer has a wholesale company, you can expect the value of the merchandise to fluctuate considerably.  The product must match the market in order to get the highest return. 
3. Desirability of the merchandise- Is it something that your potential clients are going to want?  Is it something that their customers would want? This could greatly influence someone’s perceived value of an item.  And some buyers would see more value in a particular item than others. 
4. Category of product- If it’s something like paper towels then it’s probably a safe investment for the inventory liquidator.  If its high end eye-liner and face cream it may not be perceived as safe of an investment for some buyers, thus lowering its return value. 
5. Condition of the merchandise- If it’s right off the showroom floor it will be worth more than if it’s been in your humid warehouse for the last three years. 
6. Depth of quantity- If you’ve got a variety of brand name blue jeans that are straight from the factory, that’s one thing.  But if all 10,000 pairs are the same size and style, your inventory is less valuable than if you had a solid mix of styles, colors, and sizes. 
7. Location- If you’ve got a stock of appliances that are right down the road from your buyer and the logistics would be a fairly simple process, the price and desirability would be significantly higher than if the same merchandise were coming from another country.   
8. Seasonality- Barbeque grills in the summer will be more desirable than in the winter.  As would Holiday décor. 
9. Restrictions- If there are multiple and extensive brand or channel control issues, it would certainly decrease the value, simply due to the increase in labor.  Would they have to remove tags?  Would they have to sell it outside of a certain geographic location?  Would they have to set up a temporary event sale in order to sell it? 
10. Age of merchandise- Is it last season’s goods or out of season goods from three years ago?  The age of the merchandise will greatly influence the desirability, resell value, and profits. 

This may not be an exhaustive list, but it will save you a considerable amount of time, money, and energy and give you the confidence you need to make the most of your inventory liquidation.  If you follow these guidelines, I can guarantee a higher return.  Just remember that the inventory liquidator is only buying your merchandise because he believes that there is still a market somewhere that is willing to buy it at a deeply discounted price.  You just have to find the right market. 

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