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

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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
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.
Do These Images Look Familiar?
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!
Review of Regulatory Requirements
• Governing Board may sell 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
MOST Surplus Disposal Options:
Not Well Suited for School District Sales
Agency staff not
trained to
administer
surplus sales
Most auctioneers
(marketing,
product
are generalists
descriptions
with no specific
(photos/ videos),
knowledge of
pricing, customer
public agency
service,
assets/regulatory
pkging/shipping)
requirements
Agency Managed Sealed Bid
Process
Agency Hired Local Auction
House
Agency Managed Onsite
Auctioneer
Agency Managed Online
Auction
Local sales
depend on
limited, local
audience
AGENCY TIME/
RESOURCE
CONSTRAINTS
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…
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.
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).
What Studies Warn Against
“Several platforms exist for DIY online auctions
for the public agency market”
HOWEVER…
Entrusting
to an untrained
and
inexperienced
employee
Time
diverted
from other
day to day
responsibilities
Limited time &
attention on
surplus
lower auction
results
&
LOWER ROI!!
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
MOST Surplus Disposal Options:
Not Well Suited for Public Agency Sales
Agency staff not
trained to
administer
surplus sales
(marketing,
product
descriptions
(photos/ videos),
pricing, customer
service,
pkging/shipping)
Most auctioneers
are generalists
with no specific
knowledge of
public agency
assets/regulatory
requirements
Local sales
depend on
limited, local
audience
AGENCY TIME/
RESOURCE
CONSTRAINTS
Online sales
expand audience
to a global
network
InterSchola
Surplus
Ambassadors
manage the
process - so you
don’t have to!
Agency Managed Sealed Bid
Process
Agency Hired Local Auction
House
Agency Managed Onsite
Auctioneer
Agency Managed Online
Auction
Knowledgeable
and trained
InterSchola staff
administers
surplus sales
Specific
knowledge of
public agency
regulatory
requirements
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
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
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
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/junio
r-college-sale-on-supplies-equipment/
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
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)
• Keep surplus items protected 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”
Surplus Management – Best Practices
• Reuse/Redistribute within your organization and interagency to foster a meaningful culture of sustainability
• Gain district-wide buy-in through staff orientation provided by
your surplus auction partnership.
• Outsource this 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.
Planning Full Service Option - Auction Schedule
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
30
1
Inventory
2
Public
Notice
3
4
Inventory
(alternate)
5
6
7
8
9
Auction
Launches
10
11
12
13
14
22
Inspection
16
Auction
Ends
17
18
19
20
21
22
23
Second
Pickup
24
25
Backup
Pickup
26
27
28
29
30
31
1
2
3
First
Pickup
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)
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
InterSchola pays!
InterSchola has returned over $10 Million back to
school districts nation wide!
InterSchola - Sample Clients – East Coast
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
Florida
•
•
Collier County School Board
Pinellas School District
Pennsylvania
•
Philadelphia Unified School District
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
Contact Information
InterSchola
www.interschola.com
phone/fax: 888-653-7360 x2
[email protected]
Alisa Owens, Business Development, East Coast
[email protected]
John Deatherage, Account Optimization Specialist
[email protected]
Chris Dickerman , Area Account Manager, MD
[email protected]

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