TradeOut.com Launches Internet Marketplace for the Exchange of Idle Assets and Excess Inventory

Furniture World Magazine

In response to every corporation's need to efficiently and profitably manage excess inventory, TradeOut.com has created the world's first independent, business-to-business Internet marketplace to facilitate transactions between buyers and sellers of extra inventory, idle assets and last year's products. The site promises significant strategic advantages and cost savings over traditional methods of managing excess inventory and acquiring products in every industry. TradeOut.com's business model is similar to e-Bay, the highly successful consumer Internet auction site. On TradeOut.com, executives can buy and sell items in over 50 product categories in an auction-based, sealed-bid, or fixed-price format. A diverse range of merchandise from virtually every industry sector is represented on TradeOut.com including electronic components, computers, machinery and textiles. After only three weeks of operation, $25 million in assets and excess inventory were listed on TradeOut.com. More than 30 Fortune 1000 companies across a variety of industries are currently selling on TradeOut.com, including Ralston Purina, Florida Power and Light, Georgia-Pacific, MSC Industrial Supply, Weyerhauser and Duquense Light Company. The current product selection ranges from a one megawatt generator selling for $250,000, to 95 cases of Ambrosia Invitations available for $289. The site attracts a global buying and selling community, creating extraordinary transaction opportunities. This robust exchange environment creates increased competition for goods, thereby maximizing the value of individual transactions for sellers while offering buyers access to a tremendous range of products. The system also reduces the inefficiencies involved with moving excess products and acquiring merchandise, thereby cutting individual transaction costs. "All companies typically spend a lot of time and money managing excess inventory and idle assets but are unable to maximize the sales revenue on these goods because they work with a limited group of liquidators, jobbers and auctioneers," said Brin McCagg, CEO and Founder of TradeOut.com. "TradeOut.com makes the process of managing excess and idle assets a far more lucrative and efficient operation for companies by providing a direct link to the largest possible buying audience and using the Internet to standardize and streamline the buying and selling process." While the market for liquidated inventory is upwards of $300 billion per year, dealing with excess inventory is a far less efficient process than marketing new goods. Negotiating the sale of excess inventory and idle assets is typically an unstructured process, based on telephone sales, communicating detailed specifications for individual products and negotiating multiple "one-off" sales. The Direct Marketing Association estimates that the average cost of a personal sales call for a US business is about $300. It takes an average of four sales calls to close the sale, resulting in a total approximate cost of $1,200 per sale. "We view TradeOut.com as an opportunity to maximize the value of excess inventory and efficiently reach a large universe of liquidators, auctioneers and jobbers," said Bill Stiritz, Chairman of Ralston Purina Company and a TradeOut.com charter customer. "Because of the potential savings in transaction costs and increased profit on each sale, we can significantly improve our return on assets." For more information about TradeOut.com, view the site at www.tradeout.com, or contact the company's VP of Global Sales, Peter Morin, at (914) 479-0611. TradeOut.com is an independent Internet exchange for companies seeking to buy and sell excess inventory and surplus assets. TradeOut.com enables buyers to easily find what they want at a competitive price. TradeOut.com enables sellers to increase their selling prices, lower their costs, shorten sales cycles and improve product tracking. The sellers are manufacturers, service providers, retailers and distributors. The buyers are liquidators, jobbers, discount outlets and other manufacturers. The Problem All companies have excess inventory and surplus assets that tie up capital and take up space: Excess Inventory: overstocks; discontinued items; promotional items; seasonal items, etc. Surplus Assets: used factory equipment; surplus supplies/parts; used office equipment/ furniture, etc. Companies currently dispose of excess inventory and surplus assets inefficiently: Selling prices are low. Sellers do not maximize their sales revenues on these goods because they usually only deal with a limited number of liquidators, dealers and discounters. Transaction costs are high. Firms spend a lot of time and money buying or selling these products. The Solution TradeOut.com creates an Internet market exchange that makes the sale of excess inventory and surplus assets more effective and more efficient. Expands the universe of buyers, which generates more competition and higher selling prices Attracts the largest group of sellers, which gives buyers access to more inventory and assets Minimizes transaction costs by reducing labor and communication costs TradeOut.com gives sellers the flexibility to determine how to sell these products: Sellers determine the sales format: auction, highest sealed bid or first come, first served Sellers determine to whom they want to sell to: all buyers, a pre-qualified set, or a targeted group Sellers determine the time frame for selling the product and the delivery/payment terms TradeOut.com gives buyers the best purchasing opportunities for these products: Buyers have 24 x 7 access to products from the largest universe of sellers Buyers can compare similar products from different sellers side-by-side Buyers have flexibility in tailoring their own searches TradeOut.com's Role TradeOut.com helps bring sellers and buyers together more efficiently. TradeOut.com does not purchase assets, collect payments or fulfill purchase orders. After the listing closes, the seller and buyer are notified, and the transaction is completed off-line. Fees Sellers pay a $10.00 listing fee per item and a 5% commission on completed sales. More Information Call Andy Kantor: 914-479-0611 x142 or e-mail andykantor@aol.com Call Customer Service at 1-888-525-TRADE Log onto http://www.tradeout.com .