When it comes to liquidation auctions, anything goes. As the name implies, any company selling its assets can do so at auction. The inventory runs the gamut of anything of value a company owns, including unsold inventory, office furnishings and more.
A company can voluntarily auction off its assets, such as when the owner decides to close-up shop. Or, the business can be forced to liquidate as a result of bankruptcy or legal judgments. When the liquidation auction is involuntarily, the auction proceeds are used to satisfy creditors.
Liquidation auctions can also take place when a business needs to move excess inventory.
If the owner has inventory he or she can’t resell, including customer returns, damaged goods and surpluses, they often turn to liquidation auctions for extra cash. In this case, the auction isn’t a true liquidation from closing a business, but more of a marketing event to indicate an “everything must go” situation.
Liquidation Auctions and Closing a Business
In a “Going Out of Business” sale, a company can sell anything it owns. Typical items include unsold inventory from the business, or the company’s furniture, fixtures, supplies, electronics, artwork, etc. Since the inventory can go beyond what the company sells to its customers, bidders have an opportunity to find diverse collections. Often, they can also snap-up items at deep discounts.
To conduct the liquidation auction, businesses will usually hire a professional auction company. Services provided by the auction house include taking inventory of all business assets, advertising the event and managing the entire sales process.
Good Deals to be Had?
When a business uses a true liquidation auction to sell assets, bidders expect to get low prices. The very term implies as much. Liquidation auctions are often the last resort for a company that must satisfy creditors, unload excess inventory or just wants to go out of business. In many cases, the deals can be so good that bidders purchase items in quantity and re-sell them for profit.
How Do You Get the Best Deal?
In terms of process, liquidation auctions are much like other types of auctions. They usually have an inspection period for potential bidders to evaluate items up for bid. To get the best deals, all bidders should take advantage of these inspections. Otherwise, you may not be able to determine the real market value of an item. Remember, unless an item is misrepresented, all auction purchases are sold as-is with a “no return” policy.
Since the auction house assumes no liability for items sold, there’s some risk with every purchase. Therefore, it’s important to do your homework before bidding.
In addition, make sure you know the process and requirements for each liquidation auction. What are the proper forms of payment? What additional fees must you be prepared to pay in the final amount due? Will a hold be placed on your credit card, or will an upfront payment be required? These are just a few of the questions you need to answer prior to participating in the auction.
Finally, keep your emotions in check. Auctions are exciting events and it’s easy to get wrapped up in the bidding frenzy on an item you really want. However, to get the best deal possible, you need to detach yourself emotionally and proceed with discipline.
Finding out about Liquidation Auctions
Many of these sales are of public record and require advance notice. Therefore, you’ll see them advertised in local newspapers. Interested bidders can also visit the web sites of auction houses and get on their mailing lists. The auction service will keep you informed of upcoming auctions and provide information on items coming up for sale.
Liquidation auctions can be a winning situation for everyone involved, and not just bidders getting great deals. The business has an opportunity to earn cash quicker through liquidating than through most other sales channels. Liquidation auctions can address short-term cash flow gaps, as well as keep a business owner out of bankruptcy. Plus, creditors get their money and don’t have to resort to further collection activities.
Liquidations auctions can be fun and rewarding events. With a little legwork and a good auction service partner, business owners and bidders can reap the benefits!
A company can voluntarily auction off its assets, such as when the owner decides to close-up shop. Or, the business can be forced to liquidate as a result of bankruptcy or legal judgments. When the liquidation auction is involuntarily, the auction proceeds are used to satisfy creditors.
Liquidation auctions can also take place when a business needs to move excess inventory.
If the owner has inventory he or she can’t resell, including customer returns, damaged goods and surpluses, they often turn to liquidation auctions for extra cash. In this case, the auction isn’t a true liquidation from closing a business, but more of a marketing event to indicate an “everything must go” situation.
Liquidation Auctions and Closing a Business
In a “Going Out of Business” sale, a company can sell anything it owns. Typical items include unsold inventory from the business, or the company’s furniture, fixtures, supplies, electronics, artwork, etc. Since the inventory can go beyond what the company sells to its customers, bidders have an opportunity to find diverse collections. Often, they can also snap-up items at deep discounts.
To conduct the liquidation auction, businesses will usually hire a professional auction company. Services provided by the auction house include taking inventory of all business assets, advertising the event and managing the entire sales process.
Good Deals to be Had?
When a business uses a true liquidation auction to sell assets, bidders expect to get low prices. The very term implies as much. Liquidation auctions are often the last resort for a company that must satisfy creditors, unload excess inventory or just wants to go out of business. In many cases, the deals can be so good that bidders purchase items in quantity and re-sell them for profit.
How Do You Get the Best Deal?
In terms of process, liquidation auctions are much like other types of auctions. They usually have an inspection period for potential bidders to evaluate items up for bid. To get the best deals, all bidders should take advantage of these inspections. Otherwise, you may not be able to determine the real market value of an item. Remember, unless an item is misrepresented, all auction purchases are sold as-is with a “no return” policy.
Since the auction house assumes no liability for items sold, there’s some risk with every purchase. Therefore, it’s important to do your homework before bidding.
In addition, make sure you know the process and requirements for each liquidation auction. What are the proper forms of payment? What additional fees must you be prepared to pay in the final amount due? Will a hold be placed on your credit card, or will an upfront payment be required? These are just a few of the questions you need to answer prior to participating in the auction.
Finally, keep your emotions in check. Auctions are exciting events and it’s easy to get wrapped up in the bidding frenzy on an item you really want. However, to get the best deal possible, you need to detach yourself emotionally and proceed with discipline.
Finding out about Liquidation Auctions
Many of these sales are of public record and require advance notice. Therefore, you’ll see them advertised in local newspapers. Interested bidders can also visit the web sites of auction houses and get on their mailing lists. The auction service will keep you informed of upcoming auctions and provide information on items coming up for sale.
Liquidation auctions can be a winning situation for everyone involved, and not just bidders getting great deals. The business has an opportunity to earn cash quicker through liquidating than through most other sales channels. Liquidation auctions can address short-term cash flow gaps, as well as keep a business owner out of bankruptcy. Plus, creditors get their money and don’t have to resort to further collection activities.
Liquidations auctions can be fun and rewarding events. With a little legwork and a good auction service partner, business owners and bidders can reap the benefits!
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