Liquidation sales and auction sales are two of the most common ways for a company to recover assets. Both types of sale are effective at helping a company maximize the value of surplus assets or assets that are sitting idle. However, there are a few differences between them. A liquidation sale is a good idea if you have some time and want to find a specific buyer, while an auction sale may be a better fit for a company that needs a quick recovery and has limited time. Let’s take a look at the two options, along with the benefits and drawbacks of each.
A liquidation sale, sometimes called an orderly liquidation, involves selling a company’s assets in an orderly fashion over a span of time. This is different from a forced liquidation sale, which often occurs as the result of a bankruptcy. With orderly liquidation, it is likely that the business will recover values that are close to market value. A liquidation is something like a store closing, during which a store sells its remaining inventory and then closes the shop forever. In the case of an industrial liquidation sale, the seller often reviews multiple offers and negotiates for the best deal. The sale of multiple assets like machinery, equipment, and land, can take days, weeks, months, or even years to accomplish.
An auction sale differs from a liquidation sale in that they take place very quickly. Rather than the seller waiting for the best offer, the items are simply sold to the highest bidder. The seller does not have the luxury of taking the time to review each offer and choose between them.
Choosing between an auction and a liquidation is subjective, based on your circumstances and your business. Both can be good options for selling excess or idle assets. However, your business’s needs will determine which option is best for you. If you want to find a specific buyer for your surplus assets and you have the time to explore multiple offers, liquidation is probably your best bet. However, if you need to sell your items quickly, it is better to go with an auction. Choosing an auction sale allows a business to have an expedited recovery and move on to the next step in their process.
Simply put, when you hire a professional auction or liquidation company, you will get the best return on your investment. A professional auction company has the experience and the space to make your sale a success. What’s more, the right company will have marketing resources that your business is not likely to have. Effective marketing in an auction can increase interest in your assets, which will drive up the competition and get you a better price. Marketing a liquidation sale gets the word out to more buyers, which makes it more likely that you will find exactly the right buyers for your assets.
Whether your business needs a liquidation sale or an auction, you can trust Dakil Auctioneers, Inc to help. Oklahoma’s premier, full-service auction company, we have led the Oklahoma auction industry since 1982.
Our auctioneers have over 200 years combined experience, and our 28,000 square foot, state of the art facility in Oklahoma City sets us apart from other sales options, not just locally but also nationally. We also have the capability of conducting an auction at your location, and our staff will assist in preparing your belongings to be auctioned.
Additionally, we provide a complete marketing effort for each auction we hold, with a comprehensive, highly targeted marketing campaign designed to reach the largest number of potential purchasers. If you would like more information or to subscribe to our newsletter, you can call us at (405) 266-2709 or find our contact information on our website.
