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Posted by John Pallazola

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Jun 11, 2014 12:00:00 PM

     Let’s face it, the majority of EMS, OEMs, and CMs do not have a dedicated crew to sell excess electronic components. Anyone who has ever tried knows that no Franchised Distributor is going to take back the leftover parts that they sold you (wouldn't that be great!). Often, the task usually falls back onto the buyer who initially purchased the parts to begin with. But wait a minute. You are a seasoned pro at procurement, not reselling! Still, you are the one it falls back on so here is a helpful list of pitfalls to avoid so you can MAXIMIZE your return and avoid the 5 biggest mistakes!




Surplus Electronic Components Inventory


5. Don't let it soak. 

     Doing nothing is a choice. It is a decision to allow the value of your excess electronic components to diminish with every passing day. While in rare instances obsolete electronic components can increase in value that is the exception and not the rule. Over time, newer, better, more compliant, and efficient products emerge and diminish the user base of your aging inventory. Throw in date code restricted users, oxidation, and other storage-related issues and you can see why time is NOT on your side. 

4. Don't sell it on EBAY.

     Or Craigslist or some other surplus site. As tempting as it seems to be able to reach the masses keep in mind that the most active of the masses are scammers. Anyone who has ever sold an item of value on one of these sites better be ready to be on high alert for scammers. Just Google search “craigslist scam” and you’ll see what we mean. Most legitimate purchasing agents do not buy from these sites. MANY counterfeiting operations make a living from their EBAY stores. You do not want your surplus electronic inventory to be associated with that.
3. Don't sell it to a broker or electronic parts suppliers. 

     As enticing as it sounds to just be done with it this method saves time but costs you dearly in terms of your total value recovery. If you only need to get .02 - .03 on the dollar this method will suffice. If you NEED to get a higher return for your surplus electronic components you'll need to work with a smarter Excess liquidator that has a value building system in place. Here is a great example of an excess value building system: EPIC

2. Don't take the loss and crush it.

     Some buyers get so frustrated that it's just not worth it to them to try and resell the stock. While crushing your parts and getting a Certificate of Destruction can yield you some tax benefits they are only in the form of a loss you can write against profits. In the current climate this option rarely makes sense, especially considering that you can structure your agreement with your excess vendor in such a way that you take the benefits of the loss with the potential of getting a good portion of the value back over time.

1. Don't blast it to the world. 

Bigger is better, the more the merrier, right? Not in the excess value building world. When you keep your inventory and share the list with multiple brokers here is what happens: The first broker posts it on multiple sites, many of whom sell memberships to ANYONE. Brokers who troll those sites will copy the listings and repost them. They will email broadcast your inventory. Before you know it your 1K pcs of a valuable part in short supply begin to look like 1 availability of tens of thousands in the marketplace and you lose all inventory control


SUMMARY: The best practice for maximizing your return on your surplus inventory is to pick ONE Distributor who can physically hold the stock and utilize an EXCESS PLACEMENT system. Here is a great example of one.


By following these five simple steps, you can gain the most from your excess electronic components.







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