How to Plan a Distribution Center Liquidation
Distribution center liquidation is a big job, and you want to make sure you get top dollar for your equipment. Other operators are always looking for quality used equipment, so there is often high demand. With the right partner, you can get fair market value pricing.
Conesco Storage Systems is a nationwide leader in the material handling industry and specializes in maximizing the value of your DC equipment. A team of dedicated buyers and product acquisition specialists will do an on-site visit, document and evaluate your equipment and provide a top-dollar bid. We can also assist with the labor for teardown, removal and cleanup as part of your liquidation distribution center strategy.
Liquidation Distribution Center Strategy
Careful planning is key to liquidating your assets. Here is a step-by-step process and some of the key factors you need to consider when making your decision on how to move forward.
Create Your Equipment Liquidation Schedule
The first step is walking through the distribution center and cataloging each piece of equipment, furniture and supplies. Creating an inventory list will help you estimate the scope of the liquidation and prepare you to value assets.
A spreadsheet can have columns for item names, descriptions, quantities, conditions, sizes and any notes. It may also help to indicate age and original purchase price if known.
Value Warehouse Equipment
When assessing your equipment’s value, you have to keep a few things in mind. The age and condition of the equipment will have a significant impact on the value. You may want to check recent prices for comparable equipment on auction sites or marketplaces, factoring in depreciation based on age and condition.
Liquidation in a distribution center often includes selling almost everything. So, liquidation prices may be lower than fair market value, especially if there is a single buyer involved. How quickly you need to sell and carrying costs may also impact sales price. Pricing, of course, will vary depending on market demand. In some cases, this can work in your favor to command higher pricing.
There is a market for:
- Pallet racking and accessories
- Conveyor systems
- Mezzanines
- Pick modules
- Balers
- Shrink wraps
- Industrial scales
- Lifts
- and more
Obsolete, damaged or low-value items may have little value but can also be sold as scrap in many cases. For high-value or in-demand equipment, you should get a professional appraisal.
Sell Your Equipment
In a distribution center liquidation, you have a few options to choose from when it comes to selling your assets.
Auction
You can choose to host an on-site auction or an online auction.
Pros: This can produce quick sales and competitive bidding.
Cons: Requires promotion and prep. It may not yield maximum sales. You have to handle paperwork and logistics.
Private Sales
You may want to find individual buyers on your own.
Pros: Can yield fair market pricing for in-demand assets.
Cons: Time intensive to find and broker deals. This may result in selling only some equipment.
Liquidators
Distribution center liquidation specialists can purchase all of your assets and resell them.
Pros: Fast and simple way to liquidate your distribution center equipment. Liquidators handle logistics.
Cons: May produce lower prices for single items but higher total purchase price for all equipment.
Online Marketplaces
Pros: Can reach a wide audience.
Cons: Extremely time-intensive and can yield mixed results.
Regardless of the method you choose, consider the time investment, potential profits and your internal resources.
Disposal and Cleanup
For items that cannot be sold or have no value, you will need to plan for disposal. Some items may be sold for scrap, while others may cost you to haul away. If you have furniture that still has a useful life, you may want to consider donating to charitable organizations.
Dismantling and removing equipment can get messy. You may need to do some serious cleaning, along with making sure anchors are ground flushed and epoxied if needed.
Talk to the Distribution Center Liquidation Experts
After looking at this list, you can see why we said the liquidation of a distribution center is a big job. Your best strategy is to get an evaluation from warehouse liquidation specialists like Conesco to help streamline the process and maximize your return.
Conesco has been a leader in the material handling industry since 1986. We are not an auction house; we are specialists who know the difference between quality used warehouse equipment and junk and can help you get top dollar for your DC assets. Our team is adept at quickly cataloging, assessing and valuing equipment.
Whether you are looking to liquidate your distribution center or shopping for high-quality used equipment, Conesco is here to help.
Conesco has multiple locations nationwide and serves the entire U.S. Contact Conesco today at (303)- 690-9591 to discuss your distribution center liquidation plans.
