Ryan Boleman, chief officer for Guardian Security Systems, had a warehouse full of video cameras that he needed to liquidate to make room for a new line of cameras ready to come on the market.
He knew it would take a considerable amount of time and effort to contact various dealers and unload all of the leftover cameras. It would take at least five months by his estimation. So he began to look for an alternative that would be faster and more cost effective for getting rid of his inventory.
That is how he came to find Adam Andersen, the owner of the Directive Consignment Store in Irving. Directive Consignment Store, www.directiveconsignmentstore.com utilize the eBay online auction service to sell items for its clients. Andersen did some research and made a presentation showing how he could sell the cameras at no extra cost and still give them a substantial % return on their investment.
"Adam's organization was able to turn (the surplus inventory) into revenue in a matter of weeks while freeing up shelf space for us in our warehouse," Boleman says. "I plan to use them again whenever we need to launch a new product and free up some space."
Boleman says he was impressed that Andersen was able to handle the situation with no further effort by GSS. They picked up the merchandise and stored it at their own facility. They handled all the online marketing and research to determine what price to put on the cameras. And they took care of all the shipping and handling needs as the merchandise was sold.
"All we have to do is sit back and get a check in the mail" Boleman says.
Jimmy Burns, owner of Builder's Supply Co., has also been using the services of Directive Consignment Store to sell custom designed doors that accumulate in his small warehouse.
"We like to change out our display frequently," he says. "We have a small limited warehouse and can't afford to have things lying around for long.
"But it is expensive to ship these doors back to the suppliers," he adds. "It costs more than it's worth."
Burns says he started using Directive Consignment Store last December and doesn't think he will do it any other way from now on.
"It's great for us," he says. "I don't have the headache of trying to ship these things off and they still get sold."
Since taking over the local Directive Consignment Store franchise in September 2009, Andersen says he has seen sales revenues rise 70 percent. There is currently one Directive Consignment Store stores in Irving, at 4099 Irving Mall in the Irving shopping center area.
Andersen credits the success to a change in operations and the implementation of an aggressive marketing plan.
"I'm operating the business like a corporation" he says. "We've been working to expand our business and commercial clientele."
GSS is currently Andersen's largest commercial client, but they have also provided similar services for SecureIT Corp., Am Associates, Eduardo's Bridal & Formal Wears.
"We offer a highly cost-effective and efficient method for companies to liquidate their unwanted or over-stock items utilizing the eBay sales channel," Andersen says. "Our clients have been very satisfied with our services, high-success rate and final sales price."
Andersen, who previously worked for AT&T Inc. -- says he has always wanted to have his own business and was looking for an opportunity such as this to put his background in sales and marketing to good use.
A new model
The Directive Consignment Store model allows Andersen to harness the sales strength of the 150 million registered eBay buyers and sellers to benefit his clients. Companies pay nothing to use the service and Andersen only makes money if the items sell.
"We have no upfront cost for our services," he says. "We get compensated only when their items are sold. We provide professional digital photography and descriptive copywriting, manage their auctions and package and ship their items to the winning bidders."
Andersen projects his revenues for the year will be about $1.1 million. He has 15 employees and says that his location is more than enough to keep him busy for the time being.
"This is a good fit for the services we offer," he says. "We have a fast turnaround time of usually five to seven days."
Andersen says the service he offers is almost economy-proof because people will need to sell and liquidate items even more when times are hard. When times are good, it just means that there are more people with money looking to buy things.
There are currently thirty Directive Consignment Store operating across the country with plans for another to open by the end of 2012. The original Directive Consignment Store is based in 5100 Lakewood Blvd, Lakewood, CA 90712.
You can find out more information on: www.directiveconsignmentstore.com
Directive Consignment Store
5100 Lakewood Blvd,
Lakewood, CA 90712