Approaches to Value and Factors Considered with the Electrical Industry
It is important to remember that margins in this industry (with the exception of LED lighting) are typically slim and in the event of a liquidation, even a moderate discount would entice the customer to purchase additional stock.
For any inventory where there is copper wiring involved, even where there is slow moving inventory, there is inherent scrap value in the copper itself. Even though JCM may reserve the entire non moving inventory we do give it some value in our internal analysis. Our assumption is that much of this inventory has a significant metal content (often copper) and therefore has some residual scrap value. Our analysis takes into account that wire, cord and cable has more copper content than the other categories.
Oftentimes a company may be a member of a buying group of Electrical Distributors (such as AD – Affiliated Distributors), which affords them the best possible pricing on the purchase of their inventory. Rebates are calculated on a quarterly basis and are based on sales volume and remittance of proof of invoicing by the company.
Typically, a company may not have exclusive distribution rights on any of its products. This means that during a liquidation, inventory could be sold to a competitor without the consent of the vendor. In those instances where there is exclusivity, it is likely that the manufacturer would get involved and assign a new distributor to the area. JCM has seen other liquidations whereby the vendor purchased the inventory and re-assigned it, or the newly assigned distributor purchased the inventory in order to facilitate and easy transition.
Recent changes to California Title 24 have all resulted in an increased cost to the consumer with the long term benefit of energy savings. This means a product that used to sell for $5 now sells for $25 and, with the same percent of markup, results in a higher profit per item.
California legislation to eliminate incandescent lamps typically serves to increase the company’s business in higher priced compact fluorescent products. There is a trend currently among legislators to “think green” and pass legislation which has long term energy savings potential.
Things to remember
- Understand the operations of the Company.
- Be familiar with regional and/or seasonal market fluctuations.
- Understand the nomenclature and unit of measure.
- Determine the best market for each type of asset.
Testimonials
You have gone way beyond what was asked or expected. This is a long time account with the bank and we appreciate the assistance you provided in guiding them through liquidating their excess inventory.
Metal Industry Glossary
Abbreviation for American Wire Gauge.
Designation for appliance wiring material.
Electric current that continually reverses its direction. It is expressed in cycles per second (hertz of Hz).
The Temperature of a medium (gas or liquid) surrounding the object.
A standard system for designating wire diameter. Also referred to as the Brown and Sharpe (B&S) wire gauge.
(See Current Carrying Capacity)
The unit of current. One ampere is the current flowing through one ohm of resistance at one volt potential.
Relief of mechanical stress through heat and gradual cooling. Annealing copper renders it less brittle.
The range of frequencies audible to the human ear. Usually 20-20,000 Hz.
A commonly used industry term for partial surge protection, usually a single MOV protecting line-to-neutral (see Full Protection)
A fibrous or metallic group of flamants interwoven in cylindrical form to form a covering over one or more wires.
The voltage at which the insulation Voltage between conductors breaks down.
A group of wires of the same diameter twisted together without a predetermined
The twisting together of two or more insulated conductors to form a cable.
The ability of a dielectric material between conductors to store electricity when a difference of potential exists between the conductors. The unit of measurement is the farad, which is the capacitance value that will store a charge of one coulomb when a one-volt potential difference exists between the conductors. In AC, on farad is the capacitance value that will permit one ampere of current when the voltage across the capacitor changes at a rate of one volt per second.
he complete path of an electrical current When the continuity is broken, it is called an open circuit; when continuity is maintained, it is called a closed circuit.
To hold the current or voltage at a specific fixed level.
Permanent deformation of the insulation due to mechanical force or pressure (not due to heat softening).
A system for circuit identification through use of solid colors and contrasting tracers.
An insulating or jacketing material made by mixing two or more ingredients.
In a wire or cable, the measurement of the location of the center of the conductor with respect to the geometric center of the surrounding insulation.
An insulated wire suitable for carrying electrical current.
The parts of the connector that actually carry the electrical current, and are touched together or separated to control the flow.
A test to determine whether electrical current flows continuously throughout the length of a single wire or individual wires in a cable.
A flexible insulated wire.
Ionization of air surrounding a conductor caused by the influence of high voltage. Causes deteriorization of insulated materials.
The minute cracks on the surface of plastic materials.
Abbreviation for Canadian Standards Association, a non-profit, independent organization that operates a listing service for electrical and electronic materials and equipment. The Canadian counterpart of the Underwriters Laboratories.
The maximum current an insulated conductor can safely carry with out exceeding its insulation and jacket temperature limitations.
Unwanted signals picked up and transmitted over electrical lines, caused by varying magnetic fields and
Like concentricity, a measure of the center of a conductor’s location with respect to the circular cross section of the insulation. Expressed as a percentage of displacement of one circle within the other.
The fractional increase in length of material stressed in tension.
The heat absorption capacity to absorb electrically generated heat, expressed in joules, or watt-seconds.
(1) A material used in multiconductor cables to occupy large interstices formed by the assembled conductors. (2) An inert substance added to a compound to improve properties or decrease cost.
The ability of a material not to propagate flame once the heat source is removed.
The measurement of the ability of a conductor or cable to withstand repeated bending.
The number of times an alternating current repeats its cycle in one second. (See Hertz)
A term used to denote the physical size of a wire.<br />An electrical term meaning to connect to the earth or other large conducting body to serve as an earth, thus making a complete electrical circuit.
Ground Fault Circuit Interrupter
Parallel heater cord, typically neoprene-type insulation.
An arrangement of wires and cables, usually with many breakouts, which have been tied together or pulled into a rubber or plastic sheath, used to interconnect an electrical circuit.
A term replacing cycles per second as an indication of frequency.
A test designed to check the integrity of a conductors insulation by applying a specified high voltage.
A surge suppressor that uses a combination of two or more types of electronic devious to provide additional or multi-stage surge protection (most surge protection use only MOVs).
Abbreviation for hertz.
The total opposition that a circuit offers to the flow of alternating current or any other vary current at a particular frequency. It is a combination of resistance R and Reactance X, measured in ohms.
The property of a circuit or circuit element that opposes a change in current flow, thus causing current changes to lag behind voltage changes. It is measured in henrys.
A material having high resistance to the flow of electric current. Often called a dielectric in radio frequency cable.
An outer non-metallic protective covering applied over an insulated wire or cable.
A short flat cable inter-connecting two wiring boards or devices.
The length measured along the axis of a wire or cable required for a single strand (in stranded wire) or conductor (in cable) to make one complete turn about the axis of the conductor or cable.
A tape shield, flat or corrugated, applied longitudinally with the axis of the core being shielded.
An abbreviation for the line-to-neutral, the location for the most common type of power surge (see Full Protection).
Thermoplastic insulated machine tool wire.
More than one conductor within a single cable complex.
A synthetic compound with high dielectric qualities made by Du-pont and used extensively in the wire and cable industry.
A term for unwanted electrical signals on the power line.
An electric component, usually a capacitor, designed to minimize unwanted electrical signals.
A unit of electrical resistance.
Another term for energy capacitor.
One trillionth of a second.
A chemical agent added to plastics to make them softer or more pliable.
The sealing of a cable termination or other component with a liquid that thermosets into an elastomer.
The first layer of non-conductive material applied over a conductor, whose prime function is to act as electrical insulation.
Packaging of finished wire or cable.
The maximum voltage at which an electrical component can operate for extended periods without undue degradation or safety hazard.
A measure of the difficulty in moving electrical current through a medium when voltage is applied. It is measured in ohms.
Heavy-duty, rubber-insulated portable cord. Stranded copper conductors with separator and individual rubber insulation. Two or more color-coded conductors cabled with filler, wrapped with separator and rubber jacketed overall. 600V.
Society of American Engineers.
Thermoplastic elastomer (TPE) insulated conductors. Water, flame, oil, abrasion, ultraviolet resistant for outdoor use.
Junior hard service, rubber-insulated pendant or portable cord. Same Construction as type S, but 300 V. Jacket thickness smaller.
Same as SJ, with Thermoplastic elastomer (TPE) jacket and insulated conductors. Water, flame, oil, abrasion, ultraviolet resistant for outdoor use.
Same as SJEOW, but with oil resistant inner and outer jacketing.
Same as SJ, but neoprene, oil-resistant compound outer jacket. Can also be made “water resistant”. 300 V, 60’C, 75’C, or 90’C.
All rubber, oil, water, flame, abrasion resistant in/out jacket. 300V, -40’C to 90’C.
Junior hard service thermoplastic insulated conductors with overall thermoplastic jacket, 300 V, 60’C, 75’C, or 90’C. Indoor use.
Same as SJT, but oil-resistant thermoplastic outer jacket.
Same as SJT, but outdoor water-resistant jacket.
Hard service cord. Same construction as Type S, except thicker oil-resistant neoprene jacket. 600V, -40’C to 90’C.
All rubber, oil, water, flame, abrasion resistant indoor/outdoor jacket. 600 V, -40’C, to 90’C.
Neoprene oil resistant jacketed portable cord, for outdoor use (CS).
All rubber, parallel jacketed, two conductor light duty cord for pendant or portable use. 300V.
Same as SP-1, but heavier construction, with or without third conductor for grounding purposes. 300V.
Same as SP-2, but heavier construction for refrigerators or room air conditioners. 300V.
Same as SP-1, except all thermoplastic. 300V. With or without third conductor for grounding.
Same as SP-2, except all thermoplastic. 300V. With or without third conductor for grounding.
Same as Sp-3, except all thermoplastic. 300V. With or without third conductor for grounding.
Hard service cord, jacketed. Same as type S, except all-plastic construction. 600V, 60’C to 105’C.
Same as ST, but with oil-resistant thermoplastic outer jacket. 600V, 60’C to 105’C.
Same as ST, but indoor/outdoor water resistant outer jacket.
All plastic construction. Light duty vacuum cleaner cord. With or without third conductor for ground purposes only. 300V, to 60’C to 105’C.
Pertaining to wire and cable, a layer of insulating material such as textile, paper, mylar, etc., which is placed between a conductor and its dielectric, between a cable jacket and the components it covers, or between various components of a multiple-conductor cable. It can be utilized to improve stripped qualities, roundness, and/or flexibility, or can offer additional mechanical or electrical protection to the components it separates.
A sheet, screen, or braid of metal, usually copper, aluminum, or other conducting material, placed around or between electric circuits or cables or their components to contain any unwanted radiation, or to keep out any unwanted interference.
Distance between the closest edges of two adjacent conductors.
A test designed to locate pin-holes in the insulation of a wire or a cable by application of high voltage for a very short period of time while the wire is being drawn through the electrode field.
The helical wrap of a tape over a core.
A single uninsulated wire.
A conductor composed of groups of wire twisted together.
The pull stress required to break a given specimen.
A material that softens when heated and becomes firm on cooling. Example: PVC (plastic)
Abbreviation for Underwriters Laboratories, a non-profit independent organization that operates a listing service for electrical and electronic materials and equipment.
The UL standard covering the basis for UL listing of surge controls for phone lines.
The UL standard covering the basis for UL listing of CATV lines.
The term most often used in place of electromotive force, potential difference, or voltage drop to designate the electrical pressure that exists between two points and is capable of producing a current when a closed circuit is connected between two points.
A flammability rating established by the Underwriters Laboratories for wires and cables that pass a specifically designed vertical flame test, formerly designated FR-1. Typically used for individual conductors or paralleled-type construction.