Why worry about surplus?

The Investment Recovery Association (IRA) estimates that 20 percent of a business’s assets are surplus to its needs. In other words, one-fifth of an organization’s assets, such as maintenance, repair, and overhaul (MRO) equipment and spare parts go unused, depreciate in value, and take up inventory space.

ABC Reusable Buyers offers consignment solutions for your surplus, understand the industry and know the market well – what’s in demand and where – and have good, well-fostered connections and selling channels and know-how to market and sell your MRO and industrial equipment.

The costs of excess inventory and surplus MRO can be huge. Carrying cost, carrying cost of inventory, or holding cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to maintenance, shrinkage (theft), and insurance. Steve Banker, a contributor for Forbes magazine, suggests that a 20 percent inventory carrying cost is the standard estimate for commercial and industrial-sector organizations.

Although online industrial auctions enable remote participation, potential buyers still need to view and inspect any machinery, equipment, and parts. Detailed explanations and quality images of the surplus need to be provided when making a listing. This exact challenge can be lessened by working with a more involved family business that is willing to come out and evaluate and categorize assets at their own cost.

For sellers, partnering with ABC Reusable Buyers is a cost-effective solution. Traditional onsite auctions require a significant amount of planning and labor and typically require working with a professional auctioneer, all of which drive up the cost for the seller. Working with ABC Reusable Buyers to evaluate and categorize a list of your excess assets at their cost will help you recoup a large portion of your initial capital investment.

The seller has the right to accept or decline the offer.