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How Does 64% Disrupt the Electronic Surplus Game?

John Pallazola May 23, 2019 8:45:19 AM

When it comes to measuring success, percentages can be a fickle beast. Only 4% of new businesses succeed after 10 years. In baseball if you hit the ball 30% of the time you can make millions, 35% for your career and you'd be a shoe-in for the HOF. In the Electronic component surplus realm the numbers are paltry in comparison. When it comes to selling excess IC's, memory, passives, and active components OEM and EMS providers typically will either scrap the goods or put them out for a bid. Brokers will usually bid between 3-5% of the original value they paid for the parts so they can clear the over buys off their shelves and out of their books. 

ted1Why is it always the case that what we think is a fair price is nowhere near what the excess buyers are willing to pay for it? It's because Middlemen eat profits. The more people in the middle, the more the revenues get divided. Here is a glimpse behind the curtain to see how excess buyer's come up with a bid on an excess list.

  •       Sort the Excel file by Value
  •       Identify the top 10% of the Value
  •       Figure $0 for everything else 
  •       Resell parts to Asia
  •       Post the rest on broker sites and Hope for the best.

One of the hardest things to do in the excess business, the Holy Grail of the industry, is to buy surplus from one OEM and resell it to another. It typically happens 5% of the time or less.

 

The Reason For Two-Transparent-color-version-Logo-Class-IMG-file, Classic's Inbound Marketing Group

valueThe difference between a Middleman and a true partner is the ability to ADD value for Supply Chain pros who need to monetize excess. The way our IMG does this is by getting the product in front of the end users. This means that instead of just posting it on a few niche broker sites with a few hundred thousand visitors we get it out on our proprietary Two-Transparent-color-version-Logo-ChipsHunter-file-1 and all the other major search engines so it's viewable by 50 Billion+ monthly viewers.

Here, check out a part we currently have excess on and see if you can notice it on page 1 of Google:

RC28F256J3F95A Discount

It should come as no surprise that utilizing Inbound Marketing we are able to place OEM excess with End-users a staggering 64% of the time! This means that when we work on a consignment basis we are able to get much higher returns for our OEM excess partners while immediately freeing up space and ensuring instant returns as well with our Hybrid Consignment model. Utilizing Two-Transparent-color-version-Logo-ChipsHunter-file-1, Google, and a plethora of other free sites purchasing managers and component buyers are able to directly connect to PPV cost savings opportunities. Because there are no broker middlemen, buyers can buy at a discount while the excess sellers are still getting a far better return than if they sold their parts at 3-5%. 

If you'd like to utilize the power of our IMG and Two-Transparent-color-version-Logo-ChipsHunter-file-1 for help with cost-savings opportunities (and shortages) please click here:

Submit Request For Quote

 

For a free Excess Appraisal please click here:

Free Excess Appraisal 

 

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