It's not a secret that things like furniture, tools, and most other goods aren't made to last like those of the past decades.  There are many reasons for this, such as increased competition and the expansion of the throw away mentality.  People have been trained to expect lesser quality and to be okay with having to replace things when they break prematurely.  I'm not going to dwell on that, but instead focus on what smart moves people can take not to participate in this vicious cycle of waste.

Being thrifty and buying used has been largely thought of as being cheap.  When in fact the advertising we are inundated with is selling us on the idea that new is better simply because of the ambition to sell their new goods.  The fact is that every year new goods have a diminished value proposition for consumers due to the fact that overall quality declines to reduce cost while retail prices rise to increase profits.  For this reason used goods are generally of higher quality.  The best part is you can save a lot of money buying used, many times paying just a fraction of the price of new.  If you consider the fact that you are extending the use of an item by keeping it from being disposed of while also eliminating buying something new that causes the continued depletion of our natural resources, you are a real hero when you decide to be thrifty and buy used.

You can find almost any item you are looking for used.  The secondary marketplace may not have TV commercials or expensive advertising in your favorite magazine, but who needs that when you have a better quality item and money left in the bank!  Cheers to buying used :)

If you Google the word Liquidator it will return over 10 million results.  The ability for someone to call themselves a liquidator or a liquidation company can be as simple as being self proclaimed with little to no experience or real operational assets.  The number of would-be businesses are evident when you browse the search results.

So what makes a liquidation business a legitimate operation, able to provide consistent service that offers real value?  To start with, any liquidator that doesn't maintain a business location with significant warehouse space will be unable to operate a consistent or efficient operation.  A formidable liquidator will also have a significant base of contacts that both buy and sell from them.  The ability to assess the value of goods is imperative to be able to provide fair offers to both sellers and buyers.  This requires substantial industry experience in the category of goods in which they operate.  The most challenging aspect may be that a liquidation business needs a quality labor force to be able to move goods safely and in a timely manner.  Finally, the need to maintain liability insurance and bonding represents a significant cost and many would-be liquidators are unable to afford this necessity.

When a business needs to clear a leased space, empty a warehouse, unload surplus or closeouts, etc. time is of the essence.  Having a professional liquidation company can mean the difference between receiving a fair deal, or not, and getting the job completed in a timely manner while meeting the expectations of the agreement made.

When you need liquidation services, make sure you are working with a professional.  Ensure they are bonded and insured and have experience dealing with the category of goods you have.  When buying liquidation merchandise be sure the liquidator will provide a guarantee that any equipment will be in working condition and that they are capable of backing any guarantees made.  This becomes even more important when dealing with very specialized industrial machinery, commercial equipment, or any other high dollar goods.  Do your research before committing and you will find the options for a quality professional liquidator to be less than 1% of those that claim to be.

Forced Liquidation Value Versus Orderly Liquidation Value

What does this mean to you and the value of your assets?

Forced Liquidation Value (FLV)
Forced Liquidation Value means that the assets will be sold in the shortest possible time (typically 30 to 45 days or less) depending on how strong the market is for a specific asset.

Orderly Liquidation Value (OLV)
Orderly Liquidation Value allows for an extended time frame, which means that the time to sell the assets will increase from "shortest possible time" to an expanded time frame of six to twelve months or longer.

The Most Probable Price
Both definitions are based on a professional opinion of the estimated most probable price expressed in currency that the subject assets could typically realize, as of the effective date of the appraisal, at a properly advertised and conducted sale.  By the very nature of negotiation and the extended marketing period, an OLV generally yields higher prices than an FLV.

Important Considerations
It is important to note that an OLV of assets may not bring a higher price. Some assets when put on the open market will not bring more, even with time because of many factors:

• Supply and Demand at the Time of Sale
• Potential Pool of Buyers
• Current Market Conditions