Selling Fixtures, Furniture, and Equipment (FFE) as part of Store Liquidation
By Alan Miklofsky
When closing a shoe store, one of the essential steps is effectively selling your fixtures, furniture, and equipment (FFE). These items can represent significant value and contribute to your overall liquidation strategy. This article will explore key aspects of selling FFE, including how to value and price these items for resale, advertising strategies to reach potential buyers, and negotiating buyouts with landlords for built-in fixtures.
1. Valuing and Pricing FFE for Resale
Before selling FFE, it’s crucial to assess their value accurately. Understanding how to price these items competitively can maximize your return and streamline the liquidation process.
Assessing Value:
Start by determining the original purchase price and factoring in depreciation to estimate current value. Consider how long the items have been in use, their condition, and market demand.
Research similar items on resale platforms and local marketplaces to gauge typical prices for used fixtures. This will provide insight into what potential buyers might expect to pay.
Setting Prices:
Price competitively based on condition and market demand. For items in good condition, consider pricing them at 30-50% of their original value. For items showing wear, reduce the price further.
Consider bundling items for sale to increase overall value. For example, if you have multiple shelving units, offer a discount for purchasing the entire set instead of individual pieces.
Conducting a Sale Event:
Host a dedicated sale event for FFE, possibly in conjunction with your liquidation sale. Promote it as a “Store Fixtures and Equipment Sale,” allowing buyers to see items in person and facilitating immediate transactions.
2. Advertising to Other Retailers and on Resale Marketplaces
Reaching the right audience is key to successfully selling FFE. Targeting retailers and leveraging online marketplaces can significantly enhance visibility and attract buyers.
Targeting Other Retailers:
Network within the retail community to inform other store owners about your sale. Utilize local business groups, industry associations, or trade shows to connect with potential buyers.
Consider sending direct emails or marketing materials to retailers in your area, highlighting the available FFE and any potential benefits for their operations.
Online Resale Marketplaces:
List FFE on popular resale platforms like Facebook Marketplace, Craigslist, eBay, or specialized business liquidation sites. Use high-quality images and detailed descriptions to entice potential buyers.
Be clear about pricing, dimensions, and condition in your listings, and include any additional information that could make the items appealing, such as customization options or unique features.
Social Media Promotion:
Leverage your store’s social media channels to announce the availability of FFE. Share posts featuring photos of the items, details about pricing, and links to online listings.
Engage your audience with posts like “Looking for store fixtures? Check out our liquidation sale!” to increase visibility and drive interest.
3. Negotiating Buyouts with Landlords for Built-In Fixtures
If your store has built-in fixtures that belong to the landlord, it’s essential to negotiate a fair buyout or removal agreement to facilitate a smooth transition.
Understanding Lease Agreements:
Review your lease to determine the ownership status of built-in fixtures. In some cases, landlords may own these items, while in others, they may have been considered tenant improvements.
Know your rights and obligations regarding fixtures, as this can influence your negotiation position.
Approaching Landlords:
Initiate a conversation with your landlord about the built-in fixtures. Propose a buyout price for these items based on their value and potential market worth.
Emphasize the benefits of a buyout for the landlord, such as avoiding removal costs and keeping the space in good condition for future tenants.
Negotiating Terms:
Be prepared to negotiate terms, including pricing and the timeline for removal. Landlords may be open to discussion, especially if it simplifies their responsibilities.
Consider offering to remove fixtures professionally if they prefer not to own them. This can create a win-win scenario for both parties, ensuring the space is left in good condition for future use.
Conclusion
Selling fixtures, furniture, and equipment during a liquidation can significantly impact your overall recovery from a store closing. By valuing and pricing FFE appropriately, effectively advertising to other retailers and online marketplaces, and negotiating buyouts with landlords for built-in fixtures, you can maximize the returns on these assets.
Approaching the sale of FFE strategically not only helps you recoup investment costs but also simplifies the overall liquidation process. With careful planning and effective communication, you can turn your store’s remaining assets into valuable revenue before closing the door for the last time.