Liquidation
Clients depend on Legacy Office Solutions to manage the entire
process of liquidation and removal of their furniture assets.
THE PROCESS
Inventory
We inventory our client’s furniture to determine its value. Then, a proposal is generated that details the value of the assets. In doing this, we take into consideration the costs of removal and disposal, providing a bottom line number for our client. Once the proposal is accepted, our project managers review the inventory and the assets are separated into categories: resale, refurbishment or disposal. Products are then disassembled and staged. Useable products are moved off-site for resale.
Environmental Responsibility
To minimize the impact on our landfills whenever possible, recyclable furniture – such as systems products and scrap metal – is segregated and sent to our recycling and refurbishing partners for proper removal.
The Finished Product
The end result is a free, clear space ready for the next phase of operation. Whether this next step is moving, replacing furniture or vacating the space, the entire process is handled turnkey-style by our project managers.
How to ensure a stress-free liquidation process
Plan early for liquidation
Often, the disposition of existing assets and the requirement of vacating the existing space are forgotten in the activity of a new furniture project. To avoid this, bring us in for a planning meeting as early in the process as possible.
Time is your friend
Ensuring there is sufficient time for the liquidation process allows us to plan for contingencies, attract more buyers, explore donation possibilities and arrange effective recycling options. We recommend at least 60 days for this process, in order to give us time to contact as many vendors as possible. This optimizes the ease and success with which the liquidation process is completed.
Liquidation – the math
Liquidation value is a commodity market driven by five factors:
- Current value of the assets on the wholesale market
- The cost of inventorying the product
- The cost to disassemble, stage and deliver to dock (union raises this cost)
- The cost of transportation to get the assets to another broker
- The cost of disposing or recycling any unusable products
The value minus the above costs produces a positive, negative or breakeven number for the client.
Liquidation – the emotion versus the commodity
Furniture liquidation can be an emotional process. Many times clients will tell us that, just a few years ago, they paid a lot for their furniture. Now, they feel that their company should sell this furniture for close to what they paid for it.
Commodity valuation alters based on supply and demand. For example, today’s market varies from the market in 2008-2011. In those years, the market valuation for used furniture was at a high since companies did not have the funds to purchase new furniture. However, after 2012, companies began buying new, which drove down the value of used furniture. It is important to keep these market changes in mind when going through the liquidation process.
Knowing how the market works can help you to set realistic expectations.
We recommend setting up an initial meeting and we’ll do the rest.