Excess Stock Liquidation: Definition And 3 Ways To Conduct It

Liquidations are considered to have a negative connotation in most cases. However, it is an excellent method to remove surplus equipment or excess stock from a company’s inventory. To achieve this, an excess stock liquidation has to be conducted. In this blog, its basic definition and some popular liquidation methods will be addressed.

What Is Excess Stock Liquidation?

To comprehend this process, it's vital to understand what constitutes excess stock. Any surplus equipment that has no demand and is nearing the end of its lifecycle comes under this category. As is evident, excess stock leads to the wastage of precious resources to store and manage them effectively. 

Excess stock liquidation is a process to effectively sell off this inventory at a discounted price. The main goal is to remove the surplus stock and to boost efficiency.

Ways To Conduct Excess Stock Liquidation

Some prominent methods of excess stock liquidation include:

Repurposing Or Repackaging The Excess Inventory

Businesses keen on removing excess stock must reconsider how it is marketed and repurpose it. For instance, the surplus inventory can be bundled together with other items, ideally stock which is in high demand. 

Offer Discount

Before heading the liquidation route, consider offering a heavy discount on the inventory. 

Conduct A Liquidation Sale

The most viable market channel is to conduct a business liquidation sale. Professional liquidation companies should be enlisted for this task. After appraising the excess inventory, the company will offer a total sum and handle all promotions and sales. Although not profitable, this method guarantees the removal of the excess stock and some marginal returns.

Infinity Asset Solutions is an established business liquidation company specializing in consumer product liquidations, bankruptcies, receivership inventories and excess stock. With over eight decades of collective experience, our professional services include conducting comprehensive equipment appraisals and audits as well as assisting with industrial equipment auctions via reputable market channels. Contact us today if you need assistance with facilitating an auction or a liquidation.