Tested vs untested liquidation inventory

DIRECT ANSWER

Tested means someone checked something before the item was sold to you. Untested means nobody has confirmed whether it works. There is no universal testing protocol in liquidation, so "tested" only tells you something useful once you know what test was performed, by whom, what counted as a pass and whether anything stands behind the result. Untested inventory isn't automatically bad. It moves the testing, and the risk, to you, and the price should reflect that.

A buyer sees "tested" and reads "works." Sometimes that's right. Sometimes the test was a power-on check that took a few seconds. The word is the same either way.

THE SIMPLE VERSION
  • Tested: someone checked something. Find out what.
  • Untested: nobody confirmed function. You will.
  • There is no industry-wide test standard for liquidation inventory.
  • A test result is not a warranty unless the terms say so.
  • Untested can be a fair deal if the price carries the risk and you can test it yourself.
HOW IT ACTUALLY WORKS

What tested can mean

"Tested" covers a wide range. At one end, a unit was plugged in and powered on. At the other, it went through a full check of every function. In between are checks of some functions and not others, testing of a sample of units from a lot, and tests whose results were never recorded.

Ask:

  • Was every unit tested, or a sample?
  • What exactly was checked: power, every function, cosmetic condition, completeness?
  • Who did it: the manufacturer, the retailer, a processor or the seller?
  • What counted as a pass?
  • Is the result recorded per unit, and do you get it?
  • Does any warranty or claims right come with the result?
DON'T CONFUSE THESE TWOTested and warrantied are different things. In one OEM scratch and dent program, Tier 1 is described as fully functional with a 12-month functional warranty, while Tiers 2 and 3 say some units may show very light use or testing and carry no warranty. A unit that shows signs of testing is not the same as a unit that comes with a functional promise.

What untested means

Untested means function is unknown. Some units will work and some won't, and the label doesn't tell you the split. That isn't a defect in the listing. It is the deal: the seller skips the testing labor, and you take on the work and the uncertainty.

Untested can make sense when you can test quickly yourself, you can repair or part out what fails, and the price reflects the unknown. It goes badly when you can't test, can't repair and paid as if the goods had passed a test.

Why testing differs by category and program

What it takes to test an item depends on what it is. A refrigerator needs time to show it cools. A washer needs water. A cordless tool needs a charged battery that may not be in the box. A mower may need fuel or assembly before it can run. Programs test what makes sense for their products and their process, if they test at all.

Programs also say different things about testing in their own grade definitions. The Registix appliance guide's Refurbished condition is described as professionally repaired, tested and fully functional. Other programs sell loads before anyone inspects them, so the testing is the buyer's job. So don't carry one program's meaning of tested to the next. Ask every time.

Testing on your side of the dock

Whatever the label says, plan to check function yourself on everything that plugs in, charges, holds water or has an engine. Budget the labor, the space and the time. Record results per unit, so you learn what each source's "tested" really means.

See also: How liquidation inventory condition and grading actually work.

THE NUMBERS

No percentage tells you how much more tested inventory is worth than untested. What moves is your cost: testing labor, failed units, parts and disposal all land in landed costLanded cost Landed cost is what a unit really costs you once it is in your building and ready to sell, purchase price plus freight, handling, parts and the cost of what could not be sold. per sellable unit. Track them per source and the difference becomes a number you know instead of one you guess.

WHERE PEOPLE GET BURNED
  • Reading "tested" as "works."
  • Assuming a sample test covered your unit.
  • Assuming a test result comes with a warranty.
  • Buying untested inventory with no way to test or repair it.
  • Paying for untested inventory as if it had passed a test.
  • Carrying one program's meaning of tested to another program.
WTF DOES THAT MEAN?

Terms in this guide

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