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Buyout or Brokerage, When IT Brokerage is the Answer

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When it comes to liquidating decommissioned IT equipment, a CTO usually has a number of options to choose from for handling the equipment. Two of the most popular options are IT brokerage and a complete buyout of the inventory. While these two liquidation services do share some similarities, they each offer different solutions to the same problem.

The Difference Between Buyout and Brokerage

When a complete liquidation buyout is chosen, the client is choosing to be paid one lump sum upfront for their entire inventory.  When IT brokerage services are chosen, the liquidation company assesses the equipment to determine which components still hold value on the secondary market and then this equipment is sold through various channels.  The client is then paid monthly or quarterly based on a revenue share program.

How IT Revenue Share Works

Here is a recent example of how Liquid Technology’s IT revenue share brokerage services work:
Liquid Technology was approached by a Fortune 500 electronics company that wanted to liquidate a very large quantity of IBM storage equipment that the company no longer had a need for. Since the equipment was of very high quality, it retained substantial value on the secondary market.

The problem was that since there was so much quantity of exactly the same equipment Liquid Technology was worried that if it all sold at once the market would be flooded, thus lowering its value. To prevent this, the client opted to join Liquid Technology’s IT revenue share program which slowly introduced the equipment into the secondary market. As a result, the client enjoyed a greater return (over $200K) on their investment through a more strategic IT consignment program.

Contact Liquid Technology Today to Learn More About Our IT Brokerage Services

If your business has an excess of high quality, high-value IT equipment that it needs to liquidate, contact Liquid Technology today at 800-797-5478. Our IT brokerage services may be able to help you maximize your ROI through our strategic consignment programs and first-rate partnerships.

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