Eliminating Excess Inventory For Profitability

There’s a cost to carrying inventory that extends beyond an item’s sticker price. If your business purchases too much product, or you miscalculate demand fluctuations, it just sits on shelves taking up space in a warehouse. The cost of rental warehouse space as well as unsold excess inventory can have a big impact on your business’s profitability. Those are among the many scenarios that we encounter at Ideal Trading where we can make a difference in your bottom line when we buy your excess inventory to help your profitability.

Despite their best efforts many businesses have difficulty with excess inventory. This can happen at the change of season for many retailers as well as manufacturers. There are many ways that excess inventory can affect your bottom line and one of them is property taxes.

Having excess inventory in a warehouse can increase your tax burden.

Markets and retail sectors can change rapidly, so inventory management and control doesn’t always work. If you’re stuck with excess inventory due to shifts in the market or buyer fluctuations, it can be difficult to return inventory to the supplier. Many successful businesses that we work with at Ideal Trading go through these periodic downturns. Buying your excess inventory can be a solution that solves the profit drain while returning a good portion of the original investment back to the business without further expense.

As another example, overbuying and carrying excess inventory could also lead to overstocked inventory reaching the end of its product lifecycle and becoming obsolete. This doesn’t mean that there are no potential buyers for the items, but they’re often outside of your normal business channels. In addition, the time, effort, and expense in developing those channels and selling the items is often more expensive than holding onto it.

At Ideal Trading, we specialize in developing those sales channels via auctions and other means. Consequently, when we buy your excess inventory, we can make it profitable for you and Ideal Trading due to our economies of scale in these channels.

Since we work in inventory liquidation every day, we have the processes and people to make it time and cost effective to help you assess the excess inventory without burdening your staff or adding additional costs to the process. We can often provide insights into how to improve inventory efficiency and effectiveness as we deal with an endless variety of business verticals and industries.

Buying your excess inventory is the culmination of a process that we have refined to be fast, efficient, and painless for your staff and your business. Having the support of an experienced inventory and business liquidation firm is more like having a short-term partner that can help deal with excess inventory when it occurs to help your business stay profitable.

Ideal Trading Corp is a liquidation company in New Jersey that offers services for businesses to convert their assets to cash. With extensive experience in commercial liquidation and auctioning, we provide outstanding results for business owners who are going out of business, facing bankruptcy and more. 973.343.6684 – Contact us today!