Why KPIs Matter

Key Performance Indicators (KPIs) create clarity. They help both parties:

• Agree on what success looks like
• Measure progress with real numbers
• Prevent misunderstandings or missed expectations
• Improve future projects using real feedback

Top Liquidation KPIs to Include

1. Gross Recovery Rate

This metric shows how much value is recovered versus estimated worth. For example, if your assets are valued at $100,000 and the sale generates $75,000, that’s a 75% recovery rate.

Why it matters: It shows how well your partner monetizes your equipment.

2. Time to Completion

This tracks the number of days from project start to full site clearance.

Set a target: “Complete within 30 days,” or define it by phases.

3. Percentage of Assets Sold

Measure what portion of your inventory is actually sold, versus scrapped or returned.

Ideal result: 90–100% sold for general equipment. Niche categories may vary.

4. Sale Price vs. Appraisal

This KPI compares final auction prices to pre-sale asset estimates. It shows pricing accuracy and listing performance.

5. Bidder Engagement

Track how many unique bidders participated or how many bids each lot received.

Why it matters: Strong engagement means your items are getting seen and desired.

6. Timely Reporting & Payout

Evaluate how fast your partner provides:

• Post-sale financial reports
• Payment disbursement
• Pickup tracking and buyer coordination

Suggested KPI: “Final report and payout within 10 business days after auction close.”

7. Buyer Satisfaction (Optional)

For government or institutional projects, include buyer satisfaction as a KPI. It’s especially useful when brand reputation matters.

Bonus: Escalation Terms

Always plan for “what if.” Define actions if performance falls short. You might include:

• Fee reductions
• Switching from auction to direct sale
• Right to cancel or revise strategy

These clauses add protection and encourage accountability.

Final Thoughts

A strong liquidation agreement doesn’t just assign tasks — it defines outcomes. KPIs create structure, drive results, and reduce risk.

At Surplus Cascade, we welcome KPI-based projects. We work transparently, report quickly, and stand behind our performance every step of the way.

Want help building a KPI-based liquidation agreement?

📧 Email us at sales@surpluscascade.com
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