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Alisa Owens – Business Development John Deatherage – Client Services Specialist

Surplus Asset Management Best Practices. Alisa Owens – Business Development John Deatherage – Client Services Specialist Chris Dickerman – Area Account Manager. Today’s Agenda. 1. Surplus 101 2. Compare and contrast surplus sale/disposal options

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Alisa Owens – Business Development John Deatherage – Client Services Specialist

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  1. Surplus Asset Management Best Practices • Alisa Owens – Business Development • John Deatherage – Client Services Specialist • Chris Dickerman – Area Account Manager

  2. Today’s Agenda 1. Surplus 101 2. Compare and contrast surplus sale/disposal options 3. How using best practices to manage surplus sales can: • Help ensure compliance with regulatory requirements and build community trust • Help reduce waste/ repurpose assets (internally and externally) • Help minimize depreciation/ loss & alleviate storage concerns • Help save staff time & resources • Help increase revenues, reduce costs and increase returns on $ already spent! 4. Answer questions or concerns regarding the sale of surplus and ways to best utilize InterSchola’s FULLY customizable service model.

  3. Do These Images Look Familiar?

  4. Surplus Headaches Take Many Forms • Are we allowed to sell surplus? How do we ensure regulatory compliance governing sale/ disposition for public agencies? • How do we find buyers of this stuff? • What if we might have a need for this item later? • How can I reduce waste that winds up in landfill? • Are there liability issues? • What about scrap? Can I get value for this? • All my stuff is junk! • I don’t have the time or the staff to deal with this!

  5. Review of Regulatory Requirements • Governing Board maysell surplus property not suitable for current use • Surplus/Obsolete Materials must be declared surplus by Board or representative • Public Notice Requirement • Sell property to the highest responsible bidder • Property having been previously offered for sale, for which no qualified bid was received, may be sold by private sale with no advertising • If property is of insufficient value to defray costs of arranging a public sale, then items may be sold, donated or properly disposed of

  6. MOST Surplus Disposal Options: Not Well Suited for School District Sales “DIY”

  7. Sealed Bid, Auction House, Onsite Auctioneer Limited audience models such as sealed bids and live or on-site auctions produce much lower results and can wind up costing more than online auctions…

  8. DIY Online Auction Platform Solutions • Items must be identified, gathered, sorted and tracked • Staff must inspect, take pictures and videos, write descriptions and list items online. • Staff must decide on auction duration, lotting and pricing strategy, schedule and attend pickups. • Staff must market items, recruit buyers, answer questions, deal with buyers, collect money and fill out all the necessary legal paperwork.

  9. DIY Online Details The online auction can take up to 2 hours or more per item or lot to locate, gather, take pictures, compile information and publish online… + 5 calls (avg) asking questions that were not in the detailed information + 3 calls (avg) to get the auction winner to make payment + time to coordinate pickup -Purchasing Director, DIY ONLINE AUCTION PLATFORM • Respondents to a survey all lost a significant amount of the proceeds when factoring in staff time and expense. • Several agencies noted 80% of the proceeds from the auctions went to covering expenses (staff time).

  10. What Studies Warn Against “Several platforms exist for DIY online auctions for the public agency market” HOWEVER…

  11. InterSchola Advantage - A marketplace for buying and selling surplus education/public agency assets - hosted by the world’s largest online auction site (~100MM registered users) - Buyers can view/bid on items 24 hrs/day; 7days/wk; 365 days/yr - Satisfies state Ed Code/Public Agency requirements that items go to public bid

  12. MOST Surplus Disposal Options: Not Well Suited for Public Agency Sales “DIY” “Fully Managed”

  13. InterSchola Services (Pre-Auction) InterSchola’s Surplus Consultant: • Visits client sites/evaluates surplus items on-location • Takes photographs and write descriptions • Determines appropriate auction strategy • Provides public notice documentation • Sends listings and suggested start prices for approval • Creates a 7-10 day auction listing on eBay or other online auction platform

  14. InterSchola Services (During Auction) InterSchola: • Markets items to extensive database of buyers in each asset category • Provides customer support to bidders • Distributes links to eBay listings to enable agency staff to monitor auction events • Manages on-site “inspection” of surplus items by prospective buyers

  15. InterSchola Services (Post-Auction) InterSchola: • Manages “close” of auction • Collects payment from buyers • Packs and ships items / prepare for shipping • Delivers a detailed report and a check for Client’s auction proceeds; and, • Returns to client location as needed

  16. InterSchola Case Studies Clovis Unified School District https://www.youtube.com/watch?v=aGRbRn-w6qE Santa Rosa Junior College http://extracredit.blogs.pressdemocrat.com/10441/junior-college-sale-on-supplies-equipment/

  17. Surplus Management – Best Practices • “Online auctions are a school district best practice” • Reputation is an important issue in online auctions: Seller reputation “is a statistically and economically significant determinant of auction prices.” • For many product categories (ie: high unit value or niche markets) the worldwide breadth of eBay proves a key factor in higher auction returns. • Statistics show by adopting online eBay auctions the return on investment can rise by nearly five times LARGE, OPEN PLATFORM + EXCELLENT SELLER REPUTATION = HIGHER SALE PRICES, HIGHER SELL THROUGH, LESS STAFF TIME & MAXIMUM ROI

  18. Surplus Management – Best Practices • Use online auctions to ensure widest audience distribution • Centralize surplus through one department • Pre-schedule surplus requests from sites and departments (monthly, quarterly, etc.) • Clean or service items, when possible for sale to maximize value • Plan ahead to let the process run its complete course (short time window may limit/eliminate sale options for certain items) • Keepsurplus itemsprotected to maximize value • Use all marketing/advertising available for your items (i.e.: IS link) • Other options consistent with state regulatory requirements to minimize staff work before each sale: • Board grants authority for declaration of surplus to one individual (CBO, Director of Purchasing, etc.) • Utilize continuous “Public Notice”

  19. Surplus Management – Best Practices Reuse/Redistributewithin your organization and inter-agency to foster a meaningful culture of sustainability Gain district-wide buy-in through staff orientation provided by your surplus auction partnership. Outsourcethis function of your operations to save Time, Money, Resources for other projects! MAXIMIZE ROI! Utilize sale as opportunity for staff to gain recognition by “doing good” for the budget and returning funds back to district & providing a green alternative instead of just throwing surplus away.

  20. Planning Full Service Option - Auction Schedule Wednesday Friday Sunday Tuesday Thursday Monday Saturday 4 Inventory (alternate) 30 1 2 Public Notice 3 5 6 1 Inventory 9 Auction Launches 7 8 11 12 13 10 16 Auction Ends 19 14 17 18 20 22 Inspection First Pickup 21 24 27 25 Backup Pickup 26 22 23 Second Pickup 30 29 28 31 1 2 3

  21. Surplus Management - Case Studies San Jose USD * • Avg. 1 auction/ month since 2004; Multiple asset categories; ~$830K (~1350 listings) sold to date; $240K/year New Haven USD • LOT of Photocopiers sold for >$18K • 1 Dump Truck sold for >$24K • 6 CNG Buses sold for >$168K El Dorado Union HSD * • 60x60 portable building; Due to dismantling costs, they could not sell for $1; Bidding war led to sale >$45K Mammoth USD * • 2 Propane tanks sold for $39.3K and $41.1K each The School Board of Collier County * • Avg 2 auctions/month since Sept’10; >$380K sold (>900 listings)

  22. Surplus Management - Case Studies San Mateo CCD * • Campus renovation project yields >$190K in one year Santa Rosa Junior College • 6 portables and 1 food service trailer sold for >$140K City of Fresno • $400K sold in first 2 years • 2003 Pierce Dash 100' Aerial Ladder Fire Truck sold for $225K City of Hayward * • Building demolition project – summer/fall 2010 Port of Oakland • 11 items including fire rescue truck and airport buses sold for $68K

  23. InterSchola pays! InterSchola has returned over $10 Million back to school districts nation wide!

  24. InterSchola - Sample Clients – East Coast • Florida • Collier County School Board • Pinellas School District • Pennsylvania • Philadelphia Unified School District Maryland • Baltimore County School District • Baltimore City Public Schools • Prince Georges County Public Schools • Howard County Public Schools • Talbot County School District • Kent County School District New York • Bedford School District • Peekskill School District • Briarcliff Manor School District • Croton Harmon School District • PNW BOCES, NY New Jersey • Tenafly School District • Monmouth Ocean County Regional Ed Service Center

  25. InterSchola Client Feedback • “I am extremely pleased with the process and the results! I used to spend $250K per year to have this stuff removed. Now InterSchola returns a check to me for $200K/year. The additional proceeds are going towards saving district programs.” - School District official from Santa Clara County, CA • [InterSchola’s field staff] has been great. The amount of energy that I have had to invest has been minimal!” - School District official from Santa Clara County, CA • “InterSchola’s process fits our needs as a school district…Now, more than ever, we don’t have the staff to perform these tasks, so we really rely on you guys to handle the sale of our surplus goods.” - School District official from Los Angeles County, CA

  26. Contact Information InterSchola www.interschola.com phone/fax: 888-653-7360 x2 Surplus@interschola.com Alisa Owens, Business Development, East Coast aowens@Interschola.com John Deatherage, Account Optimization Specialist jdeatherage@interschola.com Chris Dickerman , Area Account Manager, MD cdickerman@interschola.com

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