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The art of Clearance

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Today, in an era of innovation and rapidly changing consumer preferences we see countless leading brands choose clearance or liquidation as a solution to their excess stock. In 2013 alone, 400,000 companies World Wide utilised their excess stock and underperforming assets, to earn an estimated USD12 Billion dollars in previously lost revenues*.

In Australia, the largest company offering clients the opportunity to realise value from goods they are struggling to sell, is Active International. The opportunities are endless with no borderlines. Their UK business has helped Specsavers, the Guernsey-based optical group, obtain advertising, travel and print services by using credits earned from exchanging end-of-season sunglasses and unwanted stock.

Active discreetly helps shift slow-moving inventory across many sectors around the world including automotive and FMCG. In such instances, says Cameron Swan, Managing Director of Active’s Australian operations, the brand can specify that its stock can be sold to a local wholesaler or overseas to avoid upsetting big customers or trade partners, and it doesn’t affect any deals with existing retail channels.

Turning a client’s challenge to success

There are countless ways to utilise Active's business model to create extra value for clients with plenty of success stories to tell. We help a range of FMCG clients in Australia and overseas to tackle the challenges of being over-stocked, or carrying short-dated or delisted stock or simply using their inventory to generate value for their business.

What should any company bear in mind before partnering with liquidation or clearance broker or business?

Big is best

Only deal with established operators who have financial stability to ensure they will be around in the long term.

Worldwide presence

If you are a business that operates worldwide you must partner with a clearance company with similar reach.

Big brand names

Ask the company you approach who they work with. If their client list does not include some blue-chip brands, consider giving them a miss as they are unlikely to have sufficient experience and reach that will deliver maximum value.

Approved resellers

It’s vital that any business sells stock to approved resellers, or else they risk serious damage to their brand. Ensure your clearance partner has the contacts to do this.

Being an industry where experience, size, volume of contacts and the provision of the latest reporting technology is key to delivering value, it’s only these businesses that can offer all this to ensure you generate the greatest return from your unwanted assets.

*Source: www.irta.com (International Reciprocal Trade Association)

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