It’s almost the end of the business year and our customers are looking to maximise their excess stock as we start the roaring 20’s!
Depending on what a company has done during the year, it will have – for several reasons – excess stock, which will no doubt be gathering dust on its warehouse shelves! All business face a challenge when it comes to excess stock throughout the year, but with the final months of the financial year looming we suggest you do something about it and turn it into a source of income.
There are always various ways of eliminating excess stock, especially with the lead up to Christmas being a busy buying season. Investing time to think of a “excess clearance strategy” might be of some weight within the electronics industry, which seems to rack up a considerable amount of excess stock throughout the year, but it could be applied to every industry.
Most organisations’ way of dealing with excess is to mark down the inventory in hopes of eliminating the excess. This strategy can be a gamble and can backfire and lead to the stock sitting untouched within the warehouse for even longer!
Another solution can be to liquidate the excess inventory. This is advantageous because it results in selling assets off quickly and your excess stock problem in general. This option also generates and instant cash injection and can help companies move a lot of product that they previously marked down or gathering dust within the warehouse.
Liquidation however, presents a missed opportunity for getting more value out of your excess stock! There is an alternative though, you business can recover most of its money by selling excess to professional buyers of excess e.g. cyclops excess will pay to buy your excess electronic stock.
How does it work? The excess inventory is purchased with cash or sold for you in consignment. Payment is typically made after the stock has been checked and approved. Sometimes companies can recover the full face-value of the excess stock/inventory, thus helping make a significant difference to the company’s books! By working with an Excess Management company, you may be able to gain a significant amount of money back split between an upfront payment and a sum to go towards their tax liabilities
“For manufacturers, nothing can be certain, except for excess and taxes. Even the most efficient supply chains will leave manufacturers with excess stock, and then there’s other issues such as changing consumer, manufacturing and technological demands. It’s unfortunate and frustrating but ultimately, it’s inevitable. The best solution is to prepare for it. Have a structure in place that you can rely on and know what it is you are trying to achieve. Do you, for example, want to sell it quickly or work with a third party to optimise a financial return? “says Glen Bodilly, head of Cyclops Excess.
Scrapping can also be an easy fix for most companies and the headline figures associated with writing off the stock for taxation purposes can be appealing. However, this is not always the case. Scrapping incurs costs and consumes valuable resources. Instead, companies can unlock more revenue by working with an excess inventory partner.
Cyclops Excess are actively buying excess electronic inventory on an international scale. We have purchased over £7 million worth of stock in the last year and are keen to work with more manufacturers to help them maximise the value held in their excess.
If you would like to enhance the financial forecast for your excess stock of electronic components, contact us today for a free demonstration of the benefits to working with Cyclops Electronics.
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