Consignment Sales - Frequently Asked Questions and Answers.
Q - How long does the average consignment sale take?
A - Typically 40-75 days. Sometimes longer depending on the type of asset. Average time depends on the model number, vintage, availability in the marketplace and seller willingness to be competitive.
Q - What methods will you use to market it other than your customer data base?
A - We advertise on various third party sites and use social media to target end users of the underlying asset. We have Agency/partnership relationships in every major electronics market and target these independent agents that have experience in selling these assets in order to leverage their contact base. We use our proprietary data mining software/analytics to help identify prospective buyers. We match/search specific model numbers, technologies & manufacturers against many languages such as Chinese, Spanish, Arabic, German, French Etc. to find matches of potential buyers. We have an outbound telemarketing effort. And we also invite investors to our Hong Kong facility who like to put their money in hard assets using Chinese currency. In short, we have retail and wholesale customers that we market to.
Q - Why do I have to pay return shipping if it doesn't sell?
A - Freight charges are normally the responsibility of the customer. In many cases the cost of shipping back in the event of a prolonged sales cycle is much higher than free storage on TEC premises until the asset is sells. Patience = Higher selling prices. Please note each unit is a different risk assessment.
Q - If we know the units power on, what other steps do you need to take to get the highest value?
A - Depending on the asset and condition, refurbishment can include cleaning, painting, option retrofitting, repairing as needed and calibration. Determining what can be done to best position it for resale and where in the world it is worth the most money at that time.
Q - If I do not have an asking price, how is the price determined?
A - Asking prices are determined by researching current market conditions such as demand, supply, equipment condition, included accessories and software, equipment age, current comparable sales data, and whether the unit is discontinued or currently in production. Options, usage hours, usage environment, repair history, and calibration records also come into play in maximizing value. We match and search specific model numbers, technologies & manufacturers against our database of over 50,000 products and past customers to see all buy/sell data over the last 24 years. We then get offers from the marketplace or suggest a reasonable price based on your patience or urgency.
Q - I do not want to ship my equipment all the way to Hong Kong with out having a guarantee that the equipment will sell. Is there any way around this?
A - Depending on the asset type, the best location for sale is our Hong Kong facility due to its proximity to the Chinese border crossing into Shenzhen, where 98% of mobile device manufacturing takes place. The incremental cost of shipping to Lake Mary, FL USA vs. Hong Hong may be negligible especially considering where you may be shipping from or what the asset could sell for if displayed at the location that best matches its demand. Alternately we sometimes offer a video feed to our buyers in Hong Kong. If the lot or equipment is high enough in value, our Chinese investors sometimes welcome the opportunity to obtain a USA Visa by our invitation. Sometimes our Lake Mary, FL USA warehouse my be more suitable depending on the asset.
Q - Is it beneficial for me to ship the equipment to you vs. me keeping the equipment until the equipment sells?
A - Keeping the equipment at your facility limits it marketability especially if refurbishment is required. Many corporate buyers will not purchase from you as an unknown supplier with AS-IS sale terms. It is better to ship, as shipping increases sales chances by over 70%. Otherwise customers, investors and buyers will think it is just being brokered, and may not believe that they are receiving the exact asset represented.
Q - I see that the equipment I am considering consigning to you is not a 100% match to products that you typically sell, what sort of information will you need from me before you market the equipment?
A - Our vast customer base uses many types of production and manufacturing equipment. Regardless of product type we always ask for the asset history such as age, operational condition, exact model numbers, options or boards installed, and if any upgrades to software or firmware were done. We utilize independent and proprietary data sources in various industries to determine and verify current sales prices for your asset. We verify original list price, and possibly the current replacement if obsolete. Matching the asset with targeted users and buyers is more important than matching your asset to products we sell daily. Because TEC is already an approved vendor to large corporations, it is easier for us to layer in complimentary products for our customers to buy seamlessly with warranty and less risk in lieu of their trying to buy from unknown sources with higher risk. Also many of our buyers are not technology or commodity specific. Some are investor oriented and speculate on the equipment looking for creative ways to diversify their holdings and create cash flow for resale by lot, or leasing and renting the assets, or simply holding an asset instead of the local currency.
Our consignment agreement is simple and straightforward. Our consignment process is seamless, and importantly allows you to focus on your core competencies and leverage our world wide marketing expertise.
Contact us if you have any additional questions. Get started monetizing your excess assets today.