What happens when a company is going out of business? Typically, they try to sell off their assets (such as machinery/equipment) in order to make some money. One of the ways they do that is through a liquidation sale. Or they might do an auction. What’s the difference?
Typically, a liquidation sale involves the process of selling business assets in an orderly fashion over time in order to make money that’s close to market value. A liquidation sale could last weeks or months or even years. Similar to store closings, where a store would sell all of its remaining inventory, a liquidation sale is a chance for people to pick up items before they’re “gone for good” from a particular place. With an auction, however, assets are gathered together and sold off in a short period of time to the highest bidder(s). Of course, there are liquidation auctions, as well, where companies are trying to get rid of assets quickly, hoping to make a decent amount of money for what they’re selling. Oftentimes liquidation sales turn into auction sales. A company sells off stuff at a liquidation sale and whatever’s left over that didn’t sell is then auctioned off to the highest bidder(s). The main difference between liquidation sales and auctions (or liquidation auctions) is that auctions take place very quickly from start to finish.
Why Many Love Liquidation Auctions
Why are liquidation auctions popular these days? People are looking to find good stuff cheap! Oftentimes, they can go to a liquidation auction, buy a whole bunch of stuff for a fairly low price, and then take it home or to a warehouse where they can then list various things online and make a profit. One business’ loss is another’s gain!
Meanwhile, businesses with excess inventory (who are either closing up or need more space for new products) can utilize liquidation auctions to get rid of overstock items or old inventory. Auctions may attract customers from near and far, expanding the potential buyer list. Online auctions can help minimize costs. And, with online auctions, the timeframes are adaptable– things can be bought or sold at any time, 24-7.
Surplus merchandise is often sold at liquidation auctions. Typically, surplus merchandise involves items that were pulled from the shelves for whatever reason and/or returned by customers for whatever reason. Maybe an item was dented or the packaging had a rip. Maybe the product was old and it seemed like no one was interested in buying it at a particular store. Perhaps an item was priced too high, so consumers didn’t want it, but if priced lower, they’d consider it. Some items sell well, while others don’t. Eventually, where does surplus merchandise find its way? It could end up at a bargain outlet like Ollie’s or it could end up on Ebay, sold by a collector who hopes to make a profit with some nice niche stuff for sale.
Things Sold at Liquidation Auctions
What are some things that might be sold at a liquidation auction? Phone accessories, LED lighting, bluetooth speakers, shapewear, drones, and farm equipment are all good examples. Oftentimes, things sold at a liquidation auction are cheaper than wholesale prices, so, if a buyer finds something people want, and they get it for a low, low price, they can resell it and make a nice profit. The trick, then, is to find stuff that will sell.
If you plan to buy things from an online liquidation auction, keep in mind shipping costs. If you go to a liquidation auction in person, you may need a truck and some able-bodied people to help you load whatever you purchase that you’re going to haul away to your house, office or warehouse.
Wilson Auction, located at 825 North Main Street in Bryan, OH, handles liquidation auctions in Ohio, Indiana and Michigan. From farm machinery to pallet auctions, Wilson Auction can help you get rid of excess inventory; Please call 866-870-5500 for more info.