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Excess Inventory: The Case Against Premature Lot Bids

Excess Inventory isn’t something that many of our customers like to talk about at first, but especially considering the current state of the market, we think it’s a conversation that needs to be had. We are currently experiencing the longest and largest electronic component shortage since the turn of the century, but despite market demand that is trending toward historic numbers, OEMs across the world are doing themselves a costly disservice by discarding their Excess Inventory quickly without any consideration of its true value.

Lot Bid vs. Partstat’s Excess Inventory Solution

Let’s say that you have a supply of excess inventory originally valued at $100,000. If this inventory is quickly sold off in a lot bid, what we typically see is that each piece is going to go to the highest bidder for around 3-5 cents on the dollar. Think about that. If $100,000 of inventory is sold at 3 percent, then that represents $97,000 left on the table!

If you would be interested in realizing a bit (or a lot) more than 3% of your excess inventory’s value, then Partstat wants to have a conversation with you about exactly what it is we can do for you. Not only will we provide you a free excess inventory analysis detailing what the market value is for each part on your list, but we will also cover shipping charges of all qualifying inventory to one of our facilities at no cost to you. In fact, there are no costs associated with trying our program. None. Shipping, storage, selling logistics – we do it all at no cost to the customer. It’s only when the part sells do we take a small portion of the proceeds.

But what if you want to write off the excess inventory immediately? You can do that! Most of our customers strike the inventory off their books the minute it leaves their docks – and then label the inventory returns they receive as miscellaneous income. This means that there is no reason whatsoever not to at least give Partstat a chance for us to sell your excess inventory. There’s everything to regain, and nothing whatsoever to lose.

Proven, Big Data-Driven Marketing

How do we know we can sell your qualifying excess? How can we be so confident we can maximize your ROI on each individual part? Because we have the power of Big Data behind us. Unlike other consignment services, we utilize a proven excess inventory marketing strategy that leverages 50 billion data points on over 21 million individual electronic components & semiconductors. This allows us to get a detailed, complete picture of the electronic component market within a real-time model, and our status as an open platform ensures that every single part in our marketplace has a price that accurately reflects its value.

Our status as an open platform also grants us the unique ability to expand our marketing reach outside of our own walls. The excess inventory market in recent years has become increasingly consolidated, and with only a handful of potential buyers in play, it’s absolutely critical to reach each and every one to drive competition – which has a significant impact on the component’s sale price. Unlike other electronic component marketplaces, we optimize each page on Partstat to rank on Google, Yahoo, and all other major search engines, ensuring that we reach buyers however they choose to search for inventory. Partstat registers nearly a million part searches every month just on our own site alone – but once you consider the amount of part searches we rank for on Google, then you could argue that our marketing potential is only limited by the scope of the potential buyer pool. In other words, if there is a market for your excess inventory, we don’t wait for the buyer to find it; we go to them.

The Only Choice

By moving straight to a lot bid, all of the earnings potential of your excess become moot. Lot bids are effective for one thing and one thing only: getting something, anything before resorting to the scrap heap. There is a place for such a process, but in no way should it be used as your primary selling “strategy.” It should be considered only viable when all other avenues for realizing potential ROI have been exhausted.

Your inventory deserves far more than a premature lot bid. Submit your list today and we’ll immediately begin compiling a free excess inventory analysis that reveals exactly what returns you’d be missing out on.

The post Excess Inventory: The Case Against Premature Lot Bids appeared first on Partstat Blog.

This post first appeared on Alter, The Decision Making Robot, please read the originial post: here

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Excess Inventory: The Case Against Premature Lot Bids


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