Appointing a Stock Clearance Company: What to Consider

When you have surplus, redundant, or excess stock of any form, the most prudent decision you can make is to appoint a stock clearance company (or clearance stock company, as they’re often referred to). But there are so many out there. So where do you begin?

It is, of course, essential to carefully evaluate several factors to ensure you choose a partner that meets your business needs effectively and responsibly.  Apart from seeking the best price for your goods, the seller should also consider how trustworthy and reliable the clearance stock company seems.

Here’s a comprehensive checklist on what else to consider:

Experience and Expertise

• Industry Experience: Look for companies that have substantial experience in stock clearance within your specific industry. They will be more familiar with the types of products you are looking to shift. They will also be well versed in market dynamics.
• Track Record: Assess their history of successful clearances, firstly by understanding how long the company has been trading. Longevity in the business often indicates reliability and competence.

Reputation and References

• Reviews and Testimonials: A big flashy website isn’t enough. Evidence backing up how brilliant a clearance company is could provide much more insight. Bear in mind that many suppliers / manufacturers require a degree of discretion when clearing their stock, so there may not be many online reviews. Should this be the case, don’t be afraid to ask the clearance stock company to provide references from past clients. Contact these references to learn about their experiences.

Communication and Customer Service

• Honest and Genuine Approach: Being upfront and transparent is important for any type of buyer / seller relationship. Do they provide any explanation as to how they have come to their stock valuation / offer price?
• Responsive Communication: Effective and timely communication is crucial. Assess their responsiveness during initial inquiries. Do they respond to your questions in full, or do they conveniently miss out some of the questions or answer in a vague way?
• Professional / Methodical: Do they seem professional and methodical, with a good attention to detail?
• Helpful and Accommodating: Do they offer to collect your stock, or do they insist that you deliver to them? Do they offer any guidance on how to best prepare the stock for collection?

Compliance / Licensing

• Resale Restrictions and Discretion: Do you feel confident that the clearance stock company would adhere to any resale restrictions? Do you get the feeling that they understand your stock or are you concerned that mistakes may be made which could ultimately create unnecessary work for you (or even worse, issues for your regular customers)?
• Certifications and Licenses: Check for necessary licenses and certifications, which demonstrate their legitimacy and commitment to industry standards. For example, if you are looking to clear alcoholic drinks, check first that they are registered with HMRC on the Alcohol Wholesaler Registration Scheme (AWRS).

Pricing Structure

• Transparent Pricing: Does the company provide clear and detailed pricing without any hidden fees? Do they provide any explanation as to how they have come to their stock valuation / offer price?
• Cost Comparison: Obtain quotes from multiple companies to compare prices. Having said that, avoid making decisions based solely on cost. Consider the value offered.

Logistics and Capacity

• Operational Capacity: Does the company you’re considering have the resources and capacity to handle the volume of stock you need to clear?
• Geographical Reach: If your operations span multiple locations, check that the company has the logistical capability to collect from more than one location.

Flexibility and Scalability

Adaptability: The clearance stock company should be able to adjust to your specific timelines, reasonable volume changes, and genuine unforeseen circumstances. It’s important that the company you choose is willing to work with you and not against you.

Scalable: In order to build a long lasting relationship with the clearance stock company, it’s useful to understand if they can scale their services accordingly, just in case your needs change either in the short term, or if you have additional stock to clear in the longer term.

Timeliness

• Completing the Deal: What if you’ve agreed a deal with a clearance stock company, but they are stalling to complete the purchase? Unfortunately, this is quite a common scenario, as some clearance companies promise to purchase stock but don’t always follow through.

  If you feel that an excessive amount of time has passed since agreeing the deal, it is important to set yourself a deadline. Once you’ve done this, make the company aware that they need to take on the stock by that particular date. Depending on the situation, it may soon be time to look for another (more reliable) clearance stock company.

If you stick to the above advice, it could go a long way in indicating how easy the transaction will be, or whether it may be a deal that you could end up regretting.

Canny Cat Trading prides itself in operating a trustworthy and conscientiously-managed stock clearance service. We conduct ourselves with the utmost of integrity, and have a reputation that speaks for itself. If you have anything that you wish to clear, then please contact us today!