Last year’s serious dip in consumer demand gave CFOs headaches over bloated inventory levels and forced companies to absorb big discounts — to the benefit of their customers but to the detriment of their earnings. But just as one person’s trash is another’s treasure, the dilemma for CFOs with swollen balance sheets was good for the margins of Bill Morrison, CFO of Genco Marketplace, which liquidates other companies’ excess inventory.
The recession has given Morrison’s company more options to buy better-quality goods to sell to wholesalers, which in turn sell the products to discount retailers. Higher-quality products “generated higher recoveries, and oftentimes that brings with it a little higher margin,” he told CFO.com.
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