Ever wonder where all the products go that don’t sell out in stores? Many people today are asking that very same question, especially as more and more retailers close their doors. These products, referred to as excess inventory, have always been a part of the retail process, as forecasting inventory levels has always been a very inexact science. The surplus created by these inaccurate forecasts creates a constant flow of excess inventory. The retail industry’s “dirty little secret”, is that excess inventory must be dealt with in such a way so as to recover some value for the product but also to be careful not to de-value the new product by creating channel-conflict. It’s at this point in the retail process where smart businesses can help savvy consumers cash in on the downturn of the economy. What does this mean for consumers? Bargains.

A retailer wants to make sure it gets full retail price for each item sold. For example, let’s say computer retailer “A” is currently offering this season’s notebook computer model. Once Company “A” develops the newer model, it will need to make room on the shelves for the new product. Now, Company “A” could sell you last season’s model for half price to make room for the new model, but they’re not going to do that and cut into potential full retail sales of the newest model. That’s where asset recovery comes in.

Retailers must then turn to partners who can help them with liquidate their assets and recoup some value for these products, and that’s where we come in. Computer Company “A” can’t sell you last season’s model at half price because of channel conflict concerns, but uBid.com or RedTag.com can. In this scenario, the computer company recovers value for its asset, the asset recovery partner takes its commission, and the consumer gets a brand new excess inventory laptop for half the price of retail. In essence, it’s a winning proposition for everyone involved in good economic times as well as in bad, but especially given the current market where excess inventory levels have been reported as being the highest in recent memory.