Surplus stock: Should You Take the First Offer or Hold Out for a Better Deal?
Author: John Coorey
If you are scratching your head thinking about this question, stop now! The answer is quite simply, take the offer! Generally speaking, over time, offers for your surplus stock will get lower.
Surplus stock can result from a number of situations: the company over-ordered, the company was sold or is going out of business, too many units were manufactured, the market for the product changed resulting in a drop in demand, or someone overestimated the popularity of the item. If you are convinced that the reason for the overage will not compromise your ability to sell it, you are on your way.
When you try to sell surplus stock to the marketplace, you already realize that you will not get your full asking price. So then it becomes a matter of how you sell the surplus stock, who you sell it to and what price it goes for.
Your first surplus stock offer is normally the best one
In our experience, we find that the first offer you get is normally the highest. It sounds crazy, but we have never seen the price for surplus stock go up over time if you just sit on the excess inventory in your warehouse. Generally speaking, the offers get lower and you will end up with no choice but to accept a price that was lower than the first offer.
Remember to check all of the details
If the first offering price is fair in your estimation, jump on it. If you will incur additional expenses (shipping, handling, import/export taxes, etc.), that needs to be included into your negotiations. Sometimes the offer for your surplus stock might not be exactly what you were hoping for. If it is close enough, just take it and move on to other projects in your business. The time and effort you will spend trying to find another interested buyer normally does not result in higher prices.
If the transaction fits all of your needs, there is no point to waste time looking for a better deal. Grab it! The competition for surplus stock is fierce and getting more competitive every day. Retail buyers are inundated with surplus stock parcels, and take their offer when it comes. Sometimes opportunities only knock once. That is the rule, not the exception, in this business.
Sell your surplus stock fast with us
If you have been trying forever to sell your surplus stock, then it is probably a good idea to get in touch with us. We have been buying and selling surplus stock for over 21 years from our Sydney warehouse. We will discreetly approach the market, find out what the market price is and quite often we will make you an offer to buy your whole parcel on the spot.
If you have surplus stock, get in touch with us for a free consultation and we will give you a report on the state of the market. Call us on +61-2-9893 1899 or email to john@coorey.com
Author: John Coorey
Managing Director