At the auction we attended yesterday it didn’t take Z long to ask the most salient economics question I had hoped she would ask: “Where do the auctioneers get all this stuff so cheap that they can sell it for so little?” The answer, of course, is businesses that are selling off their surplus assets. Manufacturers order extra materials that get “lost” in warehouses, companies buy supplies that end up going unused, and businesses replace items before their full life has been used. All of these products end up sitting around, tieing up available cash in unproductive ways. All this stuff also takes up real estate that costs money and has to be protected or moved around by employees which are the largest expense in any business.
As usual we searched the web for examples of, and solutions to, the problem of surplus assets. One of the solution sites we came up with was the Logistics management company Surplus Capital Management Group. Their SAMS™ is an enterprise wide, web-based application which is accessed from a secure web site. SAMS™ is unique in that not only can you see just what stuff your company owns, and where you’re storing it, but you can sell, reinvest, donate or salvage your surplus assets right from your web browser.