Don't lose asset value by accepting traditional lot buy prices. Tradition is not always a winning strategy. EDX, like most companies, values tradition. However, we are not blind to better ways. When we think there is a better option, we feel obligated to break with tradition. Historically, manufacturers have disposed of their excess inventory by selling it as a lot. Simply put, inventory is sold for a fraction of its value, usually 3% to 5%. A million dollars of inventory would yield a typical retained value of $50,000, but at the same time it would create a loss of $950,000. From time to time, EDX does acquire material via lot buys. However, we always tell our customers there is a better way and by doing so, we have not only made them money but we have kept them as a customer.

At EDX, we believe that consignment is a better way. Our program is currently returning customers 44.7% of the cost of their components. How do we do that? EDX commissioned the writing of the most powerful piece of market analysis software in our industry: XTrade. XTrade tells us a parts real world value, enabling us to create a selling price that makes the purchase more attractive. Our software indicates quantity available from both franchised and independent distributors, current pricing from both sources, lead time on future orders, factory packaged quantities and much more. Stored information may indicate if the part is obsolete or if there is a "fit, form and function" cross reference. The program also tells us which customers have previously purchased that part. This gives us an immediate list of sales targets.

Sometimes companies try to sell their excess inventory themselves. Frankly, with our return value, it is fairly easy for us to provide a better result. Not only do we list it on nearly 20 other industry search engines, many of which require substantial fees for us to do so. In addition to thousands of OEM's and CEM's, your inventory is exposed to over 22,000 distributors whose combined customer lists number in the hundreds of thousands. Your inventory is also being listed with key intrnational distributors in major foreign markets. We handle all credit and return issues as well as the constant inquiry calls that sellers have to field. Same day shipping is never a problem for us. Finally, keep in mind that we sell for a living. We can produce the results you hoped for without selling the components yourself.

EDX Advantages

• Higher retained value for your inventory
• Free up warehouse space
• No paperwork headaches, just deposit the checks or apply toward purchases
• Reduce wasted employee hours
• Add items as needed means an ongoing excess solution
• No shipping costs
• Professional marketing means quicker recovery of your inventory value
• Set minimum pricing
• Continuous internet reporting