Maximize Recovery for Your Surplus

Maximize Recovery for
Your Surplus by
Building Buyer Trust
LiquidityServices.com

Table of Contents
Introduction 3
About the Survey 4
What Do Buyers Value? 5
Be Transparent About Your Asset’s Condition 6
Include Detailed, Accurate Descriptions 7
Provide Compelling Images and Videos 8
Mention Your Asset’s Age 9
Include Original Manufacturer and Seller Name 10
Display Other Bids and Bidders 11
Be Open About the Asset’s Original Price 12
Feature Similar and Related Lots 13
Conclusion 14

Until recently, the management, valuation, and sale of surplus assets and
inventory – known as the reverse supply chain – was an afterthought for
many organizations. Pressured to continually improve and innovate their core
businesses, organizations let billions of dollars of surplus and idle assets lie fallow
within their reverse supply chains.
Today, the reverse supply chain is a $150 billion and growing industry, and savvy
organizations are focusing on this area.i
Leveraging their reverse supply chains,
organizations can unearth hidden value by maximizing return and velocity,
simplifying operations, enhancing productivity, informing business decisions, and
mitigating risks.
Key to the success of an organization’s reverse supply chain is its ability to sell its
surplus for maximum recovery. As the reverse supply chain industry has grown,
however, the secondary market for surplus has become fiercely competitive.
Buyers have options and can afford to be choosy. To ensure your surplus stands
out from the clutter and generates high recovery, your organization must meet
buyers’ lofty expectations. But what do they expect, and how can you deliver?
Liquidity Services’ latest survey of surplus buyers sought to answer this question.
Introduction
Page 3

Your Surplus by Building Buyer Trust
About the Survey
Liquidity Services is a global solution provider in the reverse supply chain with the world’s largest marketplace for business
surplus, with nearly three million registered buyers and counting. Every quarter, we survey the global network of secondary
market buyers to gain a deeper understanding of their needs, priorities, and behaviors. We use this information to
continually enhance our online marketplaces and to help organizations improve their own reverse supply chains.
Last quarter, Liquidity Services surveyed nearly 2,500 buyers of surplus assets regarding their purchasing behavior,
preferences, and what they value in a surplus asset buying experience. The survey achieved a response rate well above
the industry average. Buyers of virtually every asset category were represented, from biopharmaceuticals equipment to
transportation assets to retail goods (see table for the full respondents list broken out by asset category). Both end users
and resellers/dealers were included in the survey, representing 70% and 30% respectively of total respondents.
The survey responses provided crucial insight into exactly what your organization needs to provide to ensure buyers feel
confident in their purchasing decisions.
Survey Overview
• Nearly 2,500 Buyers of Surplus
• 20+ Questions
• End Users and Resellers/Dealers
ASSET CATEGORY # OF RESPONSES
Biopharmaceuticals 1887
Mining and Construction 1483
Energy 1576
Manufacturing 1196
Retail 349
Transportation 582
GRAND TOTAL 7,072

What Do Buyers Value?
Last quarter’s survey found that surplus buyers are highly motivated by the
desire to reduce risk in their surplus purchases. Why is this so important?
Online marketplaces benefit buyers by allowing them to seamlessly view, bid,
and buy surplus items from sellers around the world. Because online buyers
often can’t view and inspect the surplus in person, however, this convenient
method entails a higher level of risk than buying in person.
Also, many surplus buyers are resellers with annual sales of less than
$250K, and their success rides on a relatively small number of bulk surplus
purchases. Buying surplus is a relatively risky proposition for them as well.
According to last quarter’s survey, your organization can reduce buyers’
perceptions of risk by providing accurate, comprehensive information
about the surplus you’re selling. The more information buyers have, the
Your organization can reduce buyers’ perceptions
of risk by providing accurate, comprehensive
information about the surplus you’re selling
Surplus buyers are
highly motivated by the
desire to reduce risk in
their surplus purchases
more confident they feel in their decision, and the more they trust in your organization and the assets they’re purchasing. As
a result, they’ll pay more and bid higher and more frequently, resulting in maximum recovery for your surplus.
Although it may sound straightforward, it takes substantial time and resources to provide this information for every asset you
sell. Since the reverse supply chain, by definition, is a non-core function, your business likely lacks the time and resources
required to deliver the merchandising experience buyers desire. The ideal solution is often to select a trusted partner to
manage and optimize your reverse supply chain. The right partner will maximize total value across your reverse supply chain
while requiring little time and effort from your organization, freeing up resources to focus on your forward-flow business.
Read on to discover how your organization can build trust and consequently maximize recovery and loyalty by providing
complete, accurate merchandising information about your surplus.

Be Transparent About Your Asset’s Condition
Virtually all (96%) buyers of surplus desire accurate information about
your asset’s condition. This information reduces buyer risk by giving
them confidence in the asset’s quality. If your asset is in less-than-stellar
condition, mentioning this builds buyer trust by showing your willingness
to be transparent about potential issues. This increases the chances buyers
will bid or purchase your assets, now and in the future.
Make sure your surplus asset management provider always includes your
assets’ conditions as part of lot listings. If you’re a retailer or consumer
brand, look for a partner that can expertly refurbish your electronics and
appliances, as this improves their condition and increases recovery.
There’s a robust market for surplus of fair, poor, or even scrap quality. In
fact, Liquidity Services has sold nearly three billion pounds of scrap metal
for the Department of Defense alone. A professional partner will leverage
an extensive, diverse buyer base to sell your surplus regardless of its
condition.
A professional partner will leverage an extensive,
diverse buyer base to sell your surplus regardless
of its condition
of surplus buyers
desire accurate
information about your
asset’s condition

Include Detailed, Accurate Descriptions
Nearly all buyers of surplus (95% according to our survey) want to see
accurate, detailed descriptions of assets for sale. The “story” of how the
asset ended up on the secondary market also interests buyers, as 61%
of survey respondents find this important. This information helps buyers
better understand the asset, reducing their perceptions of risk and
increasing the chances they’ll bid higher.
A dedicated asset management provider will include detailed descriptions
of every lot for sale, from dimensions to location to important legal details
such as payment, seller, and auction terms. If there’s an interesting story
behind why your asset is on the secondary market, including this can whet
buyer interest. For instance, an insurance company and Liquidity Services
client decided to sell on the secondary market several Rolex watches that
were recovered for its jewelry store client. The story of these watches –
that they were stolen in an ultimately unsuccessful heist – added intrigue
and helped drive bids and recovery.
If there’s an interesting story behind why your asset
is on the secondary market, including this can whet
buyer interest
of buyers want to see
accurate, detailed
descriptions of assets
for sale

Provide Compelling Images and Videos
94% and 65% of buyers, respectively, deem photos and
videos important to asset listings. Compelling photos and
videos establish buyer trust – and drive higher bids and
recovery – by providing clear evidence of your assets’
quality. Include several photos from multiple angles to show
that the asset is in good working condition. And be sure to
provide short videos of machinery assets to verify that they
still run.
Look for a provider that can skillfully capture, edit, and post
compelling photos and videos of your surplus. A trusted
provider will display your surplus in the way most appealing
to buyers, maximizing recovery while enabling you to focus
on core business.
of buyers deem photos
important to asset listings
deem videos important
A trusted provider will display your surplus in the
way most appealing to buyers, maximizing recovery
while enabling you to focus on core business

Mention Your Asset’s Age
85% of buyers want to see the asset’s age included in lot listings. Older
assets are more likely to need frequent maintenance or be obsolete or out
of warranty. Knowing an asset’s age helps buyers screen for such issues.
An asset’s age isn’t always a deal breaker, however, and you can build
buyer trust by transparently including this information even when it isn’t
favorable.
Look for a provider that includes asset age as a general practice in lot
descriptions. For retail inventory, an expert provider can raise buyer
confidence by providing warranties for older items it has refurbished.
Your partner should also have access to a global buyer base to generate
maximum recovery for your older assets. Assets considered obsolete in
your market may be in demand in developing countries.
Your partner should have access to a global buyer
base to generate maximum recovery for your
older assets
of buyers want to see
the asset’s age included
in lot listings

Include Original Manufacturer and Seller Name
A brand name matters to buyers of surplus. 73% want to
know the original manufacturer brand of surplus they’re
considering purchasing, and 66% want to know the seller
brand. A familiar brand name is a mark of quality that
increases buyer confidence and interest. Even if the seller or
manufacturer brand isn’t well-known, including it increases
buyer trust by showing that the company stands behind the
product.
A provider will – with your permission, of course –
communicate your brand and the manufacturers’ brand
to potential buyers of surplus. Since buyers associate
experiences purchasing your brand’s surplus with your
brand, make sure your provider delivers excellent customer
service throughout the buying process, from available,
helpful staff to proven dispute-resolution processes.
Original Manufacturer
Brand
Seller Brand
When Considering a Purchase,
Surplus Buyers Want to Know:
Make sure your provider delivers excellent
customer service throughout the buying process

Display Other Bids and Bidders
When browsing lots on online auction sites, buyers are
interested in both the number of times an asset has been
bid on (61% find this important) and the total number of
bidders (58% find this important). This information provides
“social proof” of an asset’s value – if many buyers are
interested in an asset, this suggests that the asset is a great
value. On the other hand, some buyers might be interested
in assets with few bids, as this could indicate that it’s a
“hidden gem.” Either way, this information helps buyers
make decisions.
Select a surplus asset management partner with a large,
diverse, global buyer base. More potential buyers means
more bidders and bids, increasing your buyers’ confidence
and leading to higher recovery.
The number of items an
asset has been bid on
The total number of
bidders
When Browsing Online Auctions,
Buyers are Interested in Both:
A large buyer base means more bidders and bids,
leading to higher recovery

Be Open About the Asset’s Original Price
Most buyers of surplus (54%) like to see the asset’s original price listed.
Comparing the original purchase price with the used price, buyers can feel
confident they’re bidding on a quality item, and will be more likely to bid
higher. They will also appreciate your transparency in providing
this information.
There’s another, more subtle way in which displaying the original price can
increase recovery. According to the psychological concept of “anchoring,”
people tend to evaluate something based on the first piece of information
they receive about it. A $100 coat seems expensive if you walk by a rack
of $20 shirts first, but not if you pass the $400 suits. Similarly, prominently
displaying the asset’s original price in listings can subconsciously prime
your buyers to bid more for that asset.
Look for a provider that lists your asset’s original price on the lot – with
your organization’s permission, of course.
of surplus buyers
like to see the asset’s
original price listed

Feature Similar and Related Lots
When shopping for surplus online, buyers want to see lots similar to those they’ve searched for and bid on in the past.
Buyers of surplus tend to be “treasure hunters” who keep an eye out for the next great deal.
This means two things for your organization. First, since surplus buyers usually buy again, it’s important to create customer
loyalty. By providing an optimal experience, your organization can turn a first-time buyer into a lifetime customer (see an
earlier Liquidity Services white paper, Maximize Value in Your Reverse Supply Chain Through Superior Buyer Experiences, to
learn how to do this). Look for a surplus asset management partner that delivers superior buyer experiences by providing
complete lot information, fulfillment and warehousing services, and excellent customer service throughout the process.
Second, many buyers will search hard for that great deal and refuse to settle. Your organization must distinguish your assets
from competitors’ – which you can do by following this white paper’s best practices.
Look for a surplus asset management partner
that delivers superior experiences for buyers of
your surplus

Conclusion
For buyers of your surplus, the secondary market is full of opportunity but also risk and uncertainty. Our extensive research
into buyer habits and beliefs has found that your business can build trust with buyers by providing a wide range of accurate,
detailed information about surplus assets you’re selling. This information ranges from the obvious (detailed descriptions and
compelling photos) to the less intuitive but also important (the asset’s original price and seller).
Given the time and resources required to provide this information for all surplus you aim to sell, consider outsourcing this
function to a trusted, expert partner. The right provider will maximize recovery for your surplus by delivering the superior,
comprehensive merchandising experiences your buyers need. And it will do so while requiring little time and effort from
your organization, freeing up resources to focus on your core business.
About Liquidity Services
Every organization has surplus – assets or inventory no longer required. Liquidity Services (NASDAQ: LQDT) works with
clients to ensure surplus is intelligently transformed from a burden into a liquid opportunity that fuels the achievement of
strategic goals. Our superior service, unmatched scale, and ability to deliver results enable us to forge trusted, long-term
relationships with over 8,000 clients, including Fortune 1000 and Global 500 organizations as well as government agencies.
With over $1 billion in annual sales proceeds and nearly 3 million buyers in almost 200 countries and territories, we are the
proven market leader in delivering smart surplus solutions. Let us build a better future for your surplus.
Visit us at LiquidityServices.com.
i
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