The world of Tools and Hardware Inventory
A lot of shops, factories and manufacturers know that one of the biggest investments they make is tools and hardware. Both are considered really vital and important for a lot of jobs and although most shops have a space for their tools and have a system they use to determine what went out and when. But for outlets, factories, retailers and manufacturers of tools and hardware, having a lot of these products on their warehouse can be a headache.
Imagine having hundreds of unsold power tools lying around your warehouse. This means lost sales and unrealized profit especially for retailers and small shops. For manufacturers of these products, overstock power tools and surplus building materials mean that they were not efficient in their projection and/or their marketing strategies was not that effective.
Here are some issues that surround companies, retailers and shops selling tools and hardware:
Having overstock power tools or having too much inventory of say, tools or hardware products on hand means unrealized profit, profit which can be used in buying fast moving products.
It is also susceptible to damages as a result of stocks piling up in your warehouse. Pilferage can also occur especially if you have a poor inventory control management system.
Having a lot of inventories can eat up a lot of space, space which can be used for other products, especially if your shop’s space is limited.
Moreover, although power tools have no expiration dates, becoming obsolete can also be an issue. The influx of cheaper power tools and hardware products from abroad can also be a headache especially for manufacturers. China and India are fast becoming producers of such products and are already in our market. The advent of more advanced and sophisticated tools or tools that can do more than one function are also eating the market of traditional power tools, think of a 3-in-1 product.
To avert these issues, it is advisable to have very good inventory control management or a good system to monitor the inventories of all your products. If you are a shop owner, check if you have ordered so much of one tool or hardware product. And if you are a manufacturer, a good system will allow you to know if you have produced the right quantities of tools or hardware products.
Manufacturers, importers and retailers having large quantity of tool closeouts, discount power tools or freight liquidator tools, often contact closeout buyers, tool liquidators, lumber liquidators or wholesale liquidators that are experts in this business. They know that stale dated merchandise is like money sitting in a checking account, not earning them interest. Also this wholesale merchandise is just sitting in their warehouse taking up valuable space that could be put to better use. They realize from experience that they must act promptly and liquidate their overstock clearance inventory.
Having a good and smart marketing program is also a must especially if your company manufactures high end tools and hardware products. Projecting where, when and how much to sell, distribute and display is vital in planning for your product, lest they end up collecting dust in your distributors’ warehouse.
Lastly, selling your power tools and hardware products at cost or at discounted rate can help deplete your inventories. Tie ups can also help attract people in buying the products, say a power tool with free drill bits for the same price as just for the tool alone. Flea market sales and auctions can also help you deplete your inventories. Just be wary of these small time wholesale buyers, as some buy a lot of overstock clearance and best buy liquidation and then eventually return the products to you after it remained unsold.
Manufacturers and importers will try and contact various larger national closeout buyers and merchandize liquidators to rid themselves of their wholesale merchandise. One of the largest wholesale liquidators is AAA Closeout Liquidators, a trusted and well known closeout buyer and wholesale liquidators, in business since 1979. They specialize in quickly purchasing wholesale merchandise, overstock clearance and bulk inventory for cash. You could visit their website at www.aaacloseout.com or you can see a free informative video about their cash surplus inventory buying services by CLICKING HERE.