The Universal Problem With Stuff

Welcome to our Multi-Part Series on "Stuff" and the problem we have in America. Please - like, subscribe, and share so that the word gets out!

In the United States, we have a problem with “stuff”? Whether it is corporations, industrial partnerships, or residential homeowners, the problem is always there.? Stuff.?? Most of it is Personal Property, and the other portion is Real Estate.? It’s all stuff.? Most Americans watch Antiques Roadshow and consider that one of the sources of value. Others watch Storage Wars and Storage Wars Texas and are pleased when they pull something out and say “That is worth $1,000 in the store all day, every day.” It comes with the exciting possibility that some old stuff might be historically significant and valuable; antiques, not just ordinary old stuff.

For more buying and selling of pre-owned objects, tune in to "Oddities" on the Discovery Channel, a show about a small Manhattan collectibles business. See the owners shop at flea markets and estate sales, garage sales and auctions, the places where people try to unload their excess stuff. Regardless of any other value, if someone else wants it, then it's good stuff.

The unhappy people featured on the A&E and TLC hoarding shows are not so lucky. Unable to discriminate treasure from trash, they are drowning in the sheer amount of their stuff. These shows feature hoarders, people suffering from a serious psychological disorder, whose material possessions have taken over their homes and lives. And you can watch them on more than one channel.

In the Commercial and Industrial arena, Surplus is still a universal problem that compiles and grows every year.? Not only are we referencing estates, we are referencing a multiple diverse residential, commercial and industrial problem that not only is about stuff, but it is about logistics.? ?It is estimated that the market for all business surplus is at least 350 billion Dollars.?? However, with post-COVID that may be greater as more companies find themselves with the inability to serve clients, or the target market has had unfortunate ends.

Marketable surplus results from an accumulation of unsold goods or an instance of overproduction. When extra items go unwanted by the primary market, many small businesses find a way to market them to a new segment.

Some call themselves Liquidators.? Some are receivership, but in the entirety of the landscape, they all do the same thing.?? Sell Stuff.

Over the next few weeks we will explore my understanding of Stuff, and potential markets and where to sell "Stuff." So let's start this week with Surplus vs Marketable Surplus.

Surplus vs Marketable Surplus

Marketable surplus is not just a bunch of stuff that didn't sell or could not move, or unmarketable estate stuff. It is a collection of merchandise that has lasting value and that can be sold or used in a way that was not originally intended. Sometimes the merchandise that is left over at the end of the retail calendar year is essentially worthless. It is often dated, no longer desirable, and unwanted by the consumer.

The more common and low-cost the merchandise is, the more likely it will be considered a general surplus and a net loss. The marketable surplus has value to someone, somewhere. It may be dated but high quality can help maintain its relevancy. Knowing which products are worth trying to sell and which are better off retiring depends largely on the knowledge of the particular industry and of the market.

Marketable surplus is not just retail, but it is also attributed to business closures, restaurant closures, retail closures, as well as industrial overstock, and in some cases, damaged goods.? All of the Marketable surpluses are what we are here to sell.

Secondary Market

Necessity is the mother of invention and there are few things more necessary than finding a way to get rid of surplus stock. In doing so, you may find new markets for your small business brand that last well beyond the sale of your surplus goods. A marketable surplus is often one that is of use to a market other than the primary target segment. To find that market, the determination of whether a previously unexplored secondary market may be the answer.

For example, your small business manufactures candles and you have been left with a few thousand of the unscented versions. Although they were intended for household use, perhaps local churches would be interested in them at a low rate. Your customers are still local but nontraditional and now your secondary market exists.

There are do-it-yourself organizations that have entered the market early, however, we see the market for the DIY organizations are starting to wane, and as they continue to become less of a threat, we do not consider them competition.? We will explain in our SWOT analysis below.

Wholesale Opportunities

Instead of trying to move your surplus goods within the primary market through repackaging or discounting them, you may do well to enter the wholesale market. If you are left with a large number of items, the traditional retail methods of selling them off can take more time than you have to waste.

Extra merchandise takes up valuable retail or storage space that many small businesses cannot spare. Finding a vendor who is willing to take on the extra merchandise at a fraction of the retail sale price can help you to recoup some of the money you have invested in the product while getting it out of the way. If the deal works out for both parties, a relationship can be formed and your future marketable surpluses can lead to an extension of the business into the wholesale market.

Negatives

Although there is often great potential in marketing surplus goods, there can also be problems. Having a surplus is rarely the ideal situation. You can be left with lots of products that you cannot move.

The other problem is that as surplus and personal property that is considered abandoned, there is no longer appreciation in value, but depreciation.?? Real Estate for example, loses value as the property goes for long periods without maintenance, or becomes overgrown or has issues with plumbing, etc.

You can also be left with a large chunk of your small business revenue tied up in a product that sits for an extended period before being sold at or near cost. Additional marketing expenses tend to be involved as well. Sometimes the only way to dig oneself out of a costly hole is to spend a bit more even though the idea is unsavory.

See you next week when we look at Categories of Marketable Goods.