Consignment, Liquidation or Estate Sale?

Ideal Trading accommodates a wide variety of sale items, including used, new and refurbished, ranging from staple items to highly specific antiques. We work with individuals and businesses looking to sell their assets. What’s the difference between consignment, liquidation and estate sales? Let’s take a look at each type:

Consignment

A business looking to sell a portion of its inventory might use a consignment sale or auction. Consignment shops sells items for the owner in exchange for a fee, and the owner retains ownership of the items until they sell. In consignment auctions, items from several different sellers may be up for bid. Risk is kept to a minimum, as the seller only pays a fee if an item is sold.

Liquidation

When a business is closing, liquidation is an option for paying off debts owed to creditors, while avoiding the stigma of bankruptcy. It involves directly converting the assets of a business to cash, and selling them to appropriate buyers. Liquidation companies handle the entire process, helping limit overhead expenses, taking care of promotion, determining the right markdowns and finding the right buyers.

Estate

Estate sales or auctions are a way of liquidating items no longer needed due to downsizing, moving, divorce, bankruptcy or death. Estate sale professionals take a percentage of the sale earnings–typically between 25 and 35 percent. They generally have connections to experts in selling fine art, antiques, jewelry and other valuables, and make the process run as smoothly as possible, staging the home, finding the best price for items and cleaning up afterwards. Estate sales run on a first-come, first-serve basis, with potential buyers walking through the home browsing for items.

Want to learn more? Ideal Trading is a full-service liquidation provider, offering services tailored to your needs, or the needs of your business. Call us at 973.343.6684, or send a message through our contact page.