Examples Explanations and Stories

Scenario #1                  Chronological Description of required activities                                                                             Value Remaining

 

 

January 1                      Shrink-wrap replacement purchased (procurement)                                                                      AR not notified                                                  This time could be used to prepare the project                 

 

February 5                   Equipment is decided to come out of service and written-off at unknown future dates         FMV-R $4000 In-                                                                                                                                                                                                                                        Place 6500-Removed

February  20                 AR notified replacement purchased Removal date & Written-off date unknown yet              FMV-IP 4000

                                                                                                                                                                                                       FMV-R $6500

March   21                    Date decided for needing to be removed by to make way for new replacement April 15       FMV-R $6500-                                                                                                                                                                                                                  200+Ship

 

March   21                    AR Activity to arrange for removal @ (-$1200) & shipping & Handling($?)                                  FMV-R $6500-                                                                                                                                                                                                                  1200+Ship

                                                                                                                                                                                                        Net-value $3300                                                                                                                                  

March  25                     Seller’s AR arrange for removal for March 6 at a cost of $1200 plus handling

April   28                       Offer wholesaler for buyer/user needing installed by April 1 800-miles away                          Retail price $7200

                                                                                                                                                                                                       Plus $800

April    6                         Removed and shipped March 10                                                                                                      Seller Sale -$4000                                                                                                                                                                                                           -$400 handling

                                                                                                                                                                                                       Net-Recovery $3600

                                                                                                                                                                                                       Minus AR dept cost

vvvvvvvvvvvvv

Reuse in place is the highest potential value assuming that is possible. The next highest is in the hands of the next user the day the equipment comes out of service.

[XMPL]  a air compressor is coming service 2-months from today. The new owner cannot come in and use it. So he wants it at his place 35 miles away. The day it comes out, he has his truck there to pick it up. That day the equipment has the next highest potential value theoretically. Cost of transfer has been minimized. All players get to win and only because you had good information early.

This is assuming you cannot redeploy it in your organization.

 

Perfection is your surplus asset management specialist. Our customized industrial recovery services offer unique and proactive approaches to maximizing return on your company's surplus, idle, or soon to be idle assets. TO MINIMIZE WHAT IS IN HOLDING REDUCE COST AND RISKS ASSOCIATED WITH HOLDING NONPERFORMING ASSETS. SINCE MOST NON-PERFORMING ASSTS ARE DEPRECIATED VALUES AND THE HOLDING COST IS SUBSTANTIAL, LESS MEANS MORE AT BOTH ENDS OF THIS EEQUATION.  On the green side, the next user, handler, recycler gets the material at it’s highest potential value,

 

[EXAMPLE]  AN ITEM KNOWN TO BE COMING OUT OF SERVICE 6 MONTHS PRIOR TO THAT EVENT HAS THE ABILITY TO BE HANDLED ONLY ONCE WHEN COMMES SERVICE. WHAT IS MORE, THE BUYER MIGHT VERY WELL LIKE THE OPPORTUNITY TO BE THR DISMANTLER AND THE SHIPPER. Aside from re-use in place, being in the hands of the next user the day the equipment comes out of service and or written off the books.

 

IT IS THE CONDITIONS OF THE SALE, THE DEAL, THE ARRAGMENETS OF THE TRANSFER SUCH AS COMFORT FROM SEE THE REMOVAL, OR DOING THE REMOVAL  OR GETTING PERSON AGREEMENT ON A WARRANTY …… COMFORT GIVES THE BUYER MORE COMFORT THAT IT IS A GOOD TRANSFER AND E=DEAL

 

Mmmmmmmmmmmmmmmmmmm            mmmmmmmmmmmmmm

 

[EXAMPLE #] for research i'd say knowing values n markets for planning i'd say (the air compressor story above but check below) or

 

[EXAMPLE #] (a potential buyer needs the machine to be rebuilt before being delivered to a user (so that iis Seller to retailor to a reconditioning shop, to the user through a 2nd party not the seller party). This scenario can go more turns before getting .   Reducing this route in any way such as reducing the 2-middle guys or reducing the handling and timing in used equipment is often critical. Worth a bit today and worthless tomorrow and maybe even at a cost tomorrow. You may not be saving the money but your buyer will. It is worth more to him/her if he doesn't have to pay the extra handling and shipping cost. It is a chain reaction but it's not if everyone is pulling for higher efficiencies.

 

In liquidation project, all the players are well aware of these facts. In normal course of business, it is wise for the seller to KNOW this. Since you have control of a large part of thee project ........ it only makes common sense to control what you can to preserve the little and typically rapid dimenishing values as more is lost in in-effocient processes (handling and shipping and dotting Is and crosssing Ts.) value left

 

 

Mmmmmmmmmmmmm

Encouraging win win transaction that spring from together building efficiencies preserved the net value throughout the project will out produce any high-end negotiating for a better price and the players know that.

 

[EXAMPLE #]

 

​Buyers know what the net result is along the proect that is where they start their thinking. Think of it.

 

There a nice bobcat worth 22 to 26,000 to an end-user with a warranty and service contract. 

 

You see that as his line to look at. Maybe, But just maybe. Might he say yes, I have a shot at getting that so long as I have the TIME. Big nut in small business. The TIME!!

 

He sees, it needs an inspection first, he is spending his day now he needs to be sure that what he sees is what is. Call that minimum 600 finding that out. That is at his shop or someplace his mechanic can work it. is there traveling etc? He sees a % of potential un-seen issues. call that a risk in dollars oof Yikes. it can spread a big line from 1000 to whatever he pays for it almost. so we call that 1500. the likelihood of not needing any work is not likely so lets call the $1200. If nothing else needs work they need to clean it and make it look good $500, market it and sell $1200 take up room in his building 13moX$75/mo it at retail at  dollar 13 months flater for 22 or from But you need it moved by ..........june 30, 2018 not Febuary 1, 2019, let say he has broker at March 5th who has a buyer who will buy it as is for $7000 so at January he offers you $6000 and flips it for $1000 or and May where a user offers another dealer has an end user snaying he will purchase it if his mecahic can inspected it or a auctioneer with a sale of $3000 January 20, 2018

 

 

Encouraging win win transaction that spring from together building efficiencies preserved the net value throughout the project will out produce any high-end negotiating for a better price and the players know that.

 

[EXAMPLE #]

 

Buyers know what the net result is along the proect that is where they start their thinking. Think of it.

 

There a nice bobcat worth 22 to 26,000 to an end-user with a warranty and service contract from a used lift-truck dealer your liquidator knows of from his network. 

 

You see that as his dollar that he considers. Bobcat to me at my facility with a reasonable service contract. Maybe you can get part of that number But just maybe. Might he say yes to you. No. He cannot get a service contract, nor service period.

 

The dealer may get that but everyone wants a deal in used equipment so the user is looking for less at his door.

 

you have a shot at getting that so long as your recovery people have plenty of time and time to spend chasing end-users.

 

TIME. Is a Big nut in small businesses particularly service busineses.

 

The TIME!!

 

He sees, it needs an inspection first, he is spending his day now he needs to be sure that what he sees he will still want after an inspection. . Call that minimum 600 finding that out.

 

That $$ is at his shop or someplace his mechanic can work it. is there traveling etc?

 

RISK #1   Also He sees a % of potential un-seen issues. call that a risk in dollars of Yikes. it can spread a big line from 1000 to whatever he pays for it almost.

so we call that 1500 just for a number

 

. the likelihood of not needing any work is not likely so lets call the $1200. If nothing else needs work they need to clean it and make it look good $500, market it and sell $1200 take up room in his building 13moX$75/mo it at retail at  dollar 13 months flater for 22 or from But you need it moved by ..........june 30, 2018 not Febuary 1, 2019, let say he has broker at March 5th who has a buyer who will buy it as is for $7000 so at January he offers you $6000 and flips it for $1000 or and May where a user offers another dealer has an end user snaying he will purchase it if his mecahic can inspected it or a auctioneer with a sale of $3000 January 20, 2018

reserving as much as value s that players saved will have as much if not much more impact on net value than from losses of inefficiencies and the greatest negotiating technique reserved the net value throughout the project will out produce any high-end negotiating for a better price and the players know that. [EXAMPLE #]

 

Buyers know what the net result. That is where they start their thinking. Think of it. There a nice bobcat worth 22 to 26,000 to an end-user with a warranty and service contract. 

 

You see that as his line to look at. Maybe, But just maybe. Might he say yes, I have a shot at getting that so long as I have the TIME. Big nut in small business. The TIME!!

 

He sees, it needs an inspection be sure that what he sees is what is. Call that minimum 600. That is at his shop or someplace his mechanic can work. He sees a % of potential un-seen issues. the likelihood of not needing any work is not likely so lets call the $1200. If nothing else needs work they need to clean it and make it look good, market it and sell it at retail  dollar 13 months from that date. But you need it moved by ..........June 30, 2018, let say he has broker at March 5th who has a buyer who will buy it as is for $7000 and a liquidator with a sale of $3000 January 20, 2018. 

 

can ever do in this small business world of recovery. This concept encircles ABcsi's mission; we keep our clients' pockets and our environment a little greener.

 

a concept that the reduction of value eating activities cooperative relationships with multiplying them through efficient processes to keep taking away from the residual value  

 

to optimizing efficiencies all players can tout /realize win/win results.  [EXAMPLE #]

 

and better financial position for negotiating. [EXAMPLE] more value is preserved in the value dealings Preserving the latent value through cooperative dealing the now surplus item[s] when removed from service nets higher recoveries than negotiating a higher price. ///??  

 

                                                                                                                                           [EXAMPLE #]

 

dividends the item[s] had throughout through efficient processes allows More value is available for arms-length property transactions from preserving  value [EXAMPLE #]

 

 

1.    Item A is projected to come out of service December 31, 2018

2.    AR is notified and given all necessary contacts, time frames, location, objective of the project (best         value, scrap,

security issues)  to get all the necessary detail

3.    AR goes to stage 1 to identify all known necessary information on 

        a.    the item]s]

        b.    logistics

        c.    time constraints (when available to inspect, be viewed by buyers, available to remove, date it MUST be removed,

written-off 

        d.     Security and safety and special restricting requirments (union rate, location hours etc) 

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