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A major building supply chain in the Southeast closed 13 of its stores and
contracted with Tranzon Fox to sell its warehouse racking. The principal
prospects for this huge volume of racks were a relatively small numbers of
racking dealers and end users. Tranzon Fox inventoried and measured all of the
racking and provided store-by-store floor plans. Using newspaper ads and direct
mail, Fox invited prospective buyers to make offers by individual row, section
or entire store.
The ad campaign resulted in 250 inquiries and 30 bids, ranging from bids on
individual rows to bids for racking from all 13 stores. Racking for all 13
stores was sold to a dealer from Denver who made an offer prior to the bid
opening date. Fox met with the buyer and negotiated the $350,000 offer up to
$587,000, obtaining a signed agreement from the purchaser and payment in full
six hours before the scheduled bid opening. The final price exceeded all sealed
bids.
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