This real life story about How I Sold My Customer's Surplus Electronic Inventory for a 135% Return, is told by our Sales Director, Jason Miles.
One day about 6 months ago I was doing my daily workload and had an interesting call with a owner from an OEM, Craig, who was strapped with a large lot of surplus electronic components which included some Infineon power mosfets. His business had slowed down during the second quarter and a major build was cancelled. Craig was searching the internet looking for a partner to help sell his excess inventory. He asked me if I could help him liquidate the lot and get back some sorely needed cash. Other distributors he'd spoken with had either passed or bid pennies on the dollar. I could sense the frustration and even a bit of desperation in his voice. Craig needed our help. I told Craig we are not going to liquidate your excess components, we are going to maximize the value.
I told Craig about our consignment program which is second to none, posting inventory on all of the major component websites along with utilizing our marketing division Whaleback Media. Our marketing division uses all facets of social media along with Adwords creating a net capturing thousands of end users. Craig was impressed with our consignment pitch and agreed to let Earthtron inventory, warehouse, and actively promote his excess inventory. One month later we received the lot and identified the values of each part. When receiving the inventory we noticed the top value item (IR3550MTRPBF) had a MSL 3 (Moisture Sensitivity Level) rating and some of the factory packages were open. MSL 3 relates to packaging and handling precautions of some semiconductors. We immediately contacted Craig and explained our findings and let him know what Earthtron could do to fix the problem. The next step was to send the parts out to a test lab to have them baked, tested for solderabilty, and resealed. Fortunately, the parts passed the solder test and were found to be in excellent condition.
About one month later we started to receive requests for the IR3550 parts. There was a shortage going on from Infineon and not many parts available in the market place outside of our 39,000 pieces. The calls came in frequently from many different distributors unlike anything we have seen in the past 9 years of doing business. The requirements were for many different quantities anywhere from 3,000 pieces to 100,000 pieces. Our marketing team put on a full court press with Adwords, blogs, and tweets about this IR3550 to find the end user who desperately needed these parts. Through this long exasperating process of companies telling us they were going to send a purchase order and then nothing happened, we updated Craig weekly. Forty quotes and five months later we received a call from a Fortune 50 end user who read our blog and visited our website, telling us they wanted to buy our parts. After several conference calls day and night to validate the parts were real genuine 100% authentic parts, we sold the full lot to the Fortune 50 company and re-couped 135% gross return of Craig's investment. Anyone dealing with excess inventory knows a 135% return on excess inventory in today's market is outstanding! At the end of the day, Craig was thankful he could rely on Earthtron's surplus inventory expertise and didn't have to put in the full time effort to try for just a small percentage of his investment.
Earthtron can inventory, warehouse, and actively promote his excess inventory.
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About The IR3550 Parts:
- Ultra Cool
- Ultra Efficient
- Ultra Performance High Efficiency
- Which Enables:
- Low Power Loss
- Less heat
- Longer Lifespan
The parts are commonly used as voltage regulators for CPUs, GPUs, and DDR memory arrays. Other applications include high current, low profile DC-DC converters.
The parts are best used in:
Desktop and workstations
Servers and storage
EarthTron LLC is an Unlimited Franchised Distributor of Electronic Components and Products. We provide customers with services not available from a restricted Franchised Distributor. In addition to our franchised lines we give you the convenience of only having to go to one company for ALL of your electronic component needs. This saves you the time of having to contact multiple companies for every part that you need. Our experience in the industry gives you the confidence that we only source from quality suppliers, to deliver quality parts. EarthTron is an electronic components distributor in Portsmouth, NH. We have been selling excess electronic components since 2008. Rely on Earthtron's surplus electronics inventory expertise, call us today.