the surplus market explained

The Surplus Market Explained

Why it’s okay to spend so much less on Datacom, OSP and Telecom Equipment

By: Mark StephensonBusiness Development ManagerMille-Com

http://www.mille-com.com

The Way Thing Usually Work

Manufacturer(Like 3M, Corning, Emerson)

Distributor or Master Reseller

Contractor(or Installer, Design-Build

Firm)

End User(US Gov’t, XYZ

Insurance, etc)

1. The Manufacturer builds something to order or for stock – they like to build lots at once to save on production costs

2. The Distributor buys the material and warehouses it in large quantities in order to sell in smaller bits for a profit

http://www.mille-com.com

The Way Thing Usually Work

Manufacturer(Like 3M, Corning, Emerson)

Distributor or Master Reseller

Contractor(or Installer, Design-Build

Firm)

End User(US Gov’t, XYZ

Insurance, etc)

3. The Contractor purchases all the material they’ve estimated they’ll need for the job and warehouses it until complete. Sometimes, if they’re big enough, the Distributor will warehouse for them.

http://www.mille-com.com

The Way Thing Usually Work

Manufacturer(Like 3M, Corning, Emerson)

Distributor or Master Reseller

Contractor(or Installer, Design-Build

Firm)

End User(US Gov’t, XYZ

Insurance, etc)

4. The End User will often change their mind at this point (just ask any Contractor). It may be the job gets delayed indefinitely due to “funding issues”, or they just decide on a different product or vendor.

http://www.mille-com.com

The Way Thing Usually Work

Manufacturer(Like 3M, Corning, Emerson)

Distributor or Master Reseller

Contractor(or Installer, Design-Build

Firm)

End User(US Gov’t, XYZ

Insurance, etc)

5. This is the mad scramble that happens when everyone plays hot-potato with the material the Manufacturer made, the Distributor sold, the Contractor bought and the End User decided against

http://www.mille-com.com

The Way Thing Usually Work

It doesn’t always happen that way. Sometimes:

1. Too much material is ordered

2. Something new & improved comes out

3. Contractors, Distributors and Local Exchange Carriers go out of business

This box of Circa 5 pin moduleswas lost in transit and was bought

from a freight company

http://www.mille-com.com

Where Mille-Com Comes In

• If the Contractor can’t return the material, we purchase from them at a discount

• When the Distributor sits on it for awhile, it starts to look good to sell it to us too

• Sometimes, the manufacturer takes it back, but would rather have cash than inventory

Manufacturer

(Like 3M, Corning, Emerson)

Distributor or

Master Reseller

Contractor(or

Installer, Design-

Build Firm)

End User(US Gov’t,

XYZ Insurance,

etc)

http://www.mille-com.com

Where Mille-Com Comes In

Buying Your Inventory (Maybe)

• Our most popular items are:▫ 3M connectors like UY-2s,

4005-GBM/TRs, 4462-SN▫ 5 Pin Modules – 3B1E,

4B1E, 4B1FS ▫ Corning Fiber – almost

anything▫ PLP Slice Closures▫ Emerson Marconi central

office protectors

Selling to You at Below Cost(Usually 20% lower)

• We mostly sell to Distribution because they’ll buy in larger lots

• If you’re just looking for one of something – we’re probably not the best place to get it.

http://www.mille-com.com

What Now?

Go to http://www.mille-com.com

http://www.mille-com.com

What Now?

Choose:“Telecom & OSP”

http://www.mille-com.com

What Now?

Choose:“Contact Us” & Send us an e-mail!

http://www.mille-com.com

What Now?

Choose:“Contact Us” & Send us an e-mail!

What are you doing?!!

It go to the website and SEND US AN E-MAIL!

Or you could call:1-866-369-4096