The buying
and selling of surplus toner is a much more complex and high-pressure
venture than the casual onlooker may imagine. Timing, product
knowledge, worldwide industry contacts, available capital, split
second decision making, warehousing, creative freight rates,
marketing, integrity, ongoing relationships, a crystal ball
and a Cheshire Cat smile are minimum requirements for being
a successful toner surplus reseller.
A reseller, or end user, who is looking to save or make a little
money should investigate the resources of a surplus supply broker.
It is helpful to do a little homework before starting negotiations
and ultimately closing the deal. Relationship selling and the
known integrity of both parties |
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| involved in
the transaction are helpful. Trust is the underlying product
that is being sold when surplus supplies are exchanged. |
Knowledge Is Power
When entering into a negotiation to sell surplus supplies, specific
knowledge of the product you hope to sell may increase the potential
value of the exchange. Specifically how much of the product do you
have? "A case of toner" is a mystery number. Grams, ounces or poundage
is helpful. A lot number(s) adds creditability. A current manufacturers
expiration date adds a couple percentage points of worth to your product.
Stating the cosmetic condition of the external packaging is also a
plus.
The perfect potential seller: "I have 2 master cases of 5 cartons
of two Riso 227mm X 100m S-028, 007 RG Masters, brown boxes. It looks
like it took on some moisture on the master and internal cartons.
The rolls are wrapped in plastic and appear to be OK. Shipping weight
is 14 pounds per case totaling 24 pounds from my Connecticut (Zip
06095) warehouse. I am looking for a payment of $187, with freight
collect."
The real world looky-lou: "Hey dude, what's happening? Got
a great deeeeaaaal for ya today!!! I'm trying to unload a few palates
of Canon toner today. You know, those BIG clear bottles. Maybe a hundred
or so per stack. Or maybe there are 200 all together. I don't know.
You should have that information. That's why you're my man. You always
know all the details. I just got an e-mail from my Texas office. Or
maybe it was my branch in Philly. We need the warehouse space so we
are trying to unload them, at a profit of course. What are you going
to pay me for the goods?"
In each case, the broker has a starting point. The first call has
provided: product, exact number of units that are sale, life expectancy,
outward condition, shipping and price expectations. Caller number
two could have just as easily asked how much will you pay for the
mystery car behind curtain number two?
If time is money, these differing types of "sales presentations" set
the tone for the negotiations that will follow. It is now up to the
surplus supply broker to create the magic formula that will allow
seller, broker and new buyer to all be able to create value from an
unwanted box of toner.
The creative surplus supply broker must wear many hats. The white
hat, worn by the trusted lawman is the most prominent. No one wants
to be purchasing stolen or counterfeit goods. The broker has a responsibility
to question too much virgin product form an unknown source. The mere
image of business suited FBI agents walking into your reception area,
warrant in hand, is enough to ruin even the most successful surplus
broker's morning cup of coffee.
An ounce of prevention is worth 20 pounds of cure. It is the responsibility
of each surplus broker to question the history of suspicious products
from unknown sources. If a deal seems too good to be true, it probably
is. Buyer beware.
There is a fine line between great deals and questionable deals. These
indeed separate the adults from the children. (This is the politically
correct way of saying the Men from the Boys.)
Keith Harris owner and managing partner of SD Pacific of Irvine, California,
is one of these men. "Trust Keith Harris" is the mantra Keith
has been preaching since the inception of SD Pacific. Keith Harris
is a guru of the surplus supply market. "If Keith Harris won't buy
it, throw it away."
Keith Harris and his partner Henry Sun have carved a nitch of creativity
in the surplus market. The value of the product is determined by the
need in the market place. The original wholesale cost of the product
has no relationship to the buying or selling price. Need creates
value. Keith Harris is extremely creative at finding someone who
needs the products SD Pacific has available for sale.
The biggest mistake sellers make with an unneeded product is holding
on to it too long. Historically, product looses value while it is
parked in someone's warehouse. All to often, the originally resale
buyer waits for Prince Needy to ride up on his white horse holding
a Purchase Order number (at full retail), for the three cases of red
developer that were ordered by mistake three years ago.
Too many wayward entrepreneurs would rather carry the worthless red
developer in inventory (at original cost), than bite the bullet, clear
up warehouse space and acknowledge the fact that somebody goofed.
Twenty cents on the dollar wholesale, of real money, won't take the
place of retail. But retail will never happen. Too many dealers wait
too long. 20% of something is better than 100% of nothing.
Keith Harris considers every one of his customers to be his friend.
Relationship buying and selling is the name of Keith Harris's game.
"It's all a matter of trust. Every one of my customers knows they
can trust me. In trusting Keith Harris, they know I am selling my
integrity first. The supplies are a mere by-product of the transaction."
Contacts, creativity, patience and integrity make up Keith Harris
formula for success. "Anyone can buy surplus supplies, I create value
by finding someone who has a need." Keith is a matchmaker, possessing
the enthusiasm of a two-year-old, the trustworthiness of an Eagle
Scout, the creativity of a thirty-year-old Wall Street commodities
broker and the patience of Job.
Keith Harris uses all the modern business techniques, Internet, bids,
word of mouth, hand written tell-all faxes, print advertising, networking,
mailers and his priceless reputation of integrity. Keith Harris's
greatest marketing tool is his unwavering honesty and continued advertising
theme of "Trust Keith Harris."
"My name is my bond. If you buy the product from me, you are guaranteed
of its integrity. You will receive what I told you, you were buying.
You can always Trust Keith Harris."
Keith Harris and Henry Sun have relocated SD Pacific to Irvine California.
"We wanted to be in the center of the action. We can better serve
our customers from our new Southern California location."
Anyone in need of buying or selling surplus toner, developer, cartridges,
bulk toner, OEM or generic supplies, drums, recharged cartridges,
etc. can Trust Keith Harris.
-Image Source Magazine. Volume 3. Issue 8. August 2000. |
