Case Study: 

Veterans Heritage Doubles Profits by Clearing Warehouse with Consignment



Veterans Heritage Association, a non-profit organization, faced a growing problem: excess inventory. VHA's warehouse overflowed with unsold construction materials, classic VHS tapes, beauty products and golf accessories, leading to a significant strain on their resources. Storage costs soared, valuable space remained occupied by static inventory, and cash flow stagnated. VHA needed a solution to unlock the potential of their surplus inventory and free up resources for growth.


The Challenge: Excess Inventory Stifling Growth

VHA's inventory management system, while functional, struggled to keep pace with fluctuating market trends. This resulted in:

  • Overstocked Warehouses: Prime warehouse space became a prisoner of unsold merchandise, hindering storage for incoming donations.
  • Reduced Profitability: Outdated inventory depreciated in value, forcing discounted sales that eroded profit margins.
  • Inefficient Operations: Managing and tracking excess inventory diverted valuable staff time and resources from core business activities.

The Solution: Partnering with Commercial Consignment Corp.

VHA recognized the need for a strategic approach to their excess inventory. They partnered with Commercial Consignment Corp. (CCC), a leading commercial consignment company specializing in maximizing the value of surplus consumer goods.


CCC's comprehensive consignment program provided a solution for Acme's challenges:

  • Expert Sales and Marketing: CCC's experienced team took over the entire sales process for VHA's surplus goods. They developed targeted marketing campaigns utilizing online and offline channels to reach a broad audience of potential buyers.
  • Secure Warehousing and Distribution: CCC provided secure, climate-controlled warehousing for the surplus inventory, freeing up valuable space in VHA's facilities. Their efficient distribution network facilitated swift delivery to buyers.
  • Transparent Reporting and Payment: VHA received regular reports on sales performance and inventory levels. They received a significant portion (40%) of the proceeds from each sale, improving cash flow.


The partnership between VHA and CCC yielded impressive results:

  • Increased Profitability: By converting surplus inventory into cash, VHA saw a 34% increase in profitability. This freed up resources to invest in new product development and marketing initiatives.
  • Reduced Storage Costs: By leveraging CCC's warehousing facilities, VHA significantly reduced their storage expenses, freeing up capital for other investments.
  • Improved Cash Flow: The regular payouts from CCC sales improved VHA's cash flow, allowing for greater financial flexibility.
  • Enhanced Operational Efficiency: Freeing up staff time from managing excess inventory allowed VHA to focus on core business activities. This led to increased efficiency and improved productivity.

VHA's successful partnership with CCC demonstrates the power of commercial consignment in unlocking the potential of surplus inventory. By partnering with a reputable consignment company like CCC, businesses can transform their warehouses from a liability into an asset, boosting profitability and streamlining operations.

Hidden Costs Of Surplus Inventory


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