Consigning is the process of transferring assets to another person or company, but still having ownership of the goods until the product is sold or relocated. Consigning inventory can be an advantageous tool for businesses for several reasons. Below is a list of three reasons that explain why numerous businesses cosign some of their products and inventory.
1) Consigning inventory frees up extra space. Nearly every business is faced with the challenge of moving inventory, hopefully to make room for new inventory. However, having excess inventory can create a variety of issues, and force businesses to search for additional space in their warehouses, storage areas and back rooms. Cosigning inventory creates needed space, while still allowing a business to move/sell a product.
2) Expands your market. Generally speaking, the place you are cosigning your inventory to has a different customer base who may not have either heard of your business, or made a previous transaction with your business. Cosigning however, provides businesses with a chance for a supplemental market to view their products. This can set up a future business relationship if the customer is satisfied with their purchase.
3) Consignment frees up money. Consignment ensures that your money is not completely tied up inventory, allowing you to use resources elsewhere.
If you have any additional questions about the benefits of consignment, or about consignment services provided by Petrowsky Auctioneers, please contact us