Today’s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing.
Last week, one of our customers mentioned that they were dealing with one of their vendors to purchase back some obsolete inventory. This is just one of the methods some companies use to move old or excess items they have purchased and today’s blog will be taking a look at a few more.
Vendor Assisted – The example mentioned above is one method of dealing with excess inventory, and is one of the most important methods to consider when negotiating the purchase of new items. Unfortunately, many companies miss this opportunity until it is too late. Letting vendors you deal with know they may have an opportunity to buy back you excess inventory up front will many times get more aggressive pricing from them on the new items you are purchasing.
Third party buyback programs – If you are not able to negotiate a deal for your obsolete or discontinued items up front with the vendor, another approach is to contact third party companies who special in purchasing excess inventory at a reduced price and reselling it through their own channels. Depending on the type of product you are looking to move there will always be companies who will specialize in handling it for you.
Donation Programs – Occasionally the sale of excess or obsolete will either not be possible or will not be not as valued as the tax write-off given when it is donated. As in the cases above there are many companies who will coordinate the pickup and redistribution to charities that they work with; taking the entire burden of getting rid of the products off of your business and providing you with a tax incentive on top of it.
There are many ways to take care of your excess inventory and as is often the case, the earlier you plan the more options you will have in the directions you can take. For assistance in finding ways to move your excess, discontinued or obsolete inventory, please contact a SafeSourcing Customer Service Representative.
We look forward to your comments.