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Tips For Getting the Most Out of Your Business Assets
In today's fast pace world changes can happen in the blink of an eye. This is true in both personal and business life. In business changes can mean quick decisions need to be made along with swift action. Over the course of 20+ years I have seen this happen with companies large and small. A contract lost, a building sold, a downturn in the economy. For various reasons as a business owner or facilities manager you may find yourself in the position where you need to move and move quickly. More often then not this will require either the moving or liquidation of your existing assets. Mainly office furniture and equipment. If you find yourself in a position where moving is required you are in luck. There are dozens of quality moving companies in all major markets to choose from. Liquidating office furniture is a much different story.
Choosing a liquidator can make or break the bank.
In the wold of office furniture liquidation there are many choices. Knowing how to make the right choice is the key to success. Most furniture dealers can offer liquidation services and in most cases will be able to deliver good service provided they are equipped for the size of the job and have been provided enough time. This is a chance you can take but, may soon regret if they are not able to complete the job on time. As you know if you are not completely out of your office space in the time provided by the landlord you may find yourself paying thousands of dollars for an additional months rent. An Office liquidator's only purpose to provide you with a good return on your assets and complete the job on time. When choosing between a dealer and a liquidator or even between two liquidators there are a few things you may want to consider.
1. References. Be sure to have the liquidators provide references for past projects to be sure they have successfully completed projects similar to yours in the past.
2. Check the BBB. This is just a given.
3. Make sure the liquidator can provide you with a detailed quote stating timelines, insurance requirements and the monetary return you can expect if one so applies.
4. Prior to the start of the work be sure to get a signed contract binding the liquidator to the terms, pricing and timeline. (A good liquidator will have a detailed standard contract they use with all clients)
Using these steps will help you make the right choice and could save you thousands in long run.
The value of your furniture.
This is where the difference between a furniture dealer and furniture liquidator make the biggest impact on your project. Most dealers have large retail operations with enormous overhead which makes purchasing at a low price a must. Liquidators on the other hand tend to work out of lower cost warehouses and carry the overhead of large sales staffs and advertising. If a liquidator can operate at a 35% or more lower cost they can typically pay a little more for inventory. Makes sense right? Here is the biggest difference. Most liquidators are typically wholesalers selling to other furniture dealers in their area or around the country. For this reason they are usually able to find a buyer for some of the furniture ahead of time which allows them to provide you with a much higher return on your assets. When eventuating your furniture a good office furniture liquidator will take many things into consideration. Some of the main things a liquidator will consider are as follows.
1. Manufacturer and model of the furniture
2. Condition of the furniture
3. Colors and layout of the furniture. (Purple cubicles in large configuration are very hard to sell)
4. Building logistics and working conditions
5. Timeline in which the project needs to be completed
6. Time provided prior to the start of the project ( The more time provided the better your return on assets)
All of these details go into a formula that allows the liquidator to evaluate the furniture properly and let you know the true market value. Understanding the market place is one of the most important traits of a seasoned liquidator. You may find yourself having very nice, clean office furniture and still getting low or negative bids on your furniture. Sometimes this could be the result of an inexperienced liquidator but, if you have vetted your vendors properly this is probably the result of a low market value for your style of furniture. Once again a good liquidator should be able to provide you with a detailed quote explaining how they came up with their figures.
By using the information provided in this article you should find yourself in a position of knowledge when dealing with the unpleasant surprise of moving or closing a business facility. Be sure to vet your vendors properly and ask them the right questions. If done properly the typically difficult liquidation process should be smooth and painless.