Profile: William P. Angrick III '95, Asad Haroon '88 and Jaime
that's water under the bridge for others brings a torrent
of success to Kellogg alumni at Liquidity Services Inc.
of 1995 graduates William P. Angrick III and Jaime Mateus-Tique
credit the Kellogg School for a solid grounding in entrepreneurship.
earning their MBA degrees, they worked through hands-on classes
in new venture formulation and marketing new products, organized
entrepreneurship conferences — a technology entrepreneurship
conference Angrick helped found continues to this day —
and participated in clubs organized around their shared interest.
management education also set the stage for a more elusive,
but important, part of their present entrepreneurial success:
a strong friendship and partnership.
the right partner is one of the most important aspects of
succeeding in business," Mateus-Tique says. "You
simply cannot make it without that."
their 6-year-old company, Liquidity Services Inc., is a great
success. According to its Web site, the Washington, D.C.-based
firm, which specializes in helping businesses and government
agencies dispose of obsolete and discontinued inventory, had
revenues of $76 million for fiscal year 2004. It now employs
some 300 people and encompasses 2 million square feet of warehouse
space, becoming the fourth-fastest growing firm in America
according to Entrepreneur Magazine.
firm is getting noticed. The Ernst & Young Entrepreneur
of the Year Award was recently granted to Liquidity's founders,
including Benjamin Brown. Asad Haroon '88, the company's CMO,
has also been a key contributor.
graduation from Kellogg, Angrick, who is chairman and CEO,
and Mateus-Tique, who is president and COO, followed their
professors' advice to gain experience and build skills by
joining a company before venturing out on their own. Angrick
began his career as an investment banker working with high-growth
e-commerce, and Mateus-Tique signed on as an associate with
a large consulting firm, tackling supply chain and media issues.
years working on their own, Angrick and Mateus-Tique found
a way to combine their new media savvy and knowledge of business
services in an entrepreneurial venture. The idea was to help
businesses and government agencies manage the "reverse
supply chain" — remarketing of retail customer
returns, overstock products and unwanted inventory that can
consume warehouse space and drain energy from moving finished
goods through the firm's forward supply chain.
its online marketplaces, which include liquidation.com,
govliquidation.com and uksurplus.com, the firm
uses the Internet to match buyers and sellers in business-to-business
transactions in much the same way eBay does with smaller-scale
sales. But instead of bidding on one rare record or a used
children's toy, the company's professional buyers typically
compete for bulk quantities of items such as power tools,
digital camcorders, printers or "any product sold by
a big box retailer," Angrick says. The average sale on
the sites totals about $1,000 and the typical quantity ranges
from one pallet of goods to a truckload.
and after online sale, Liquidity Services helps buyers and
sellers manage their transactions by offering assistance with
inbound shipping and storage, inventory inspection and organization,
development of a sales or marketing plan, payment collection
and outbound transportation.
turning to Liquidity Services, many of our customers handled
this process with paper and pencil and fax and spreadsheet,"
Angrick says. "We believe this new model is a best practice
for corporations to manage products in the reverse supply
firm's online marketplaces attract buyers from 116 countries,
who typically resell, refurbish or export their purchases
— or turn around and sell them on eBay. Angrick estimates
that about one-quarter of buyers are themselves the large-volume
eBay entrepreneurs known as "Power Sellers."
merchandise is sold on an as-is basis with Liquidity Services
receiving a fee based on the gross merchandise sales value.
Sellers remain confidential; Liquidity Services even offers
to remove trademarks if a company wishes.
bottom line, according to Angrick and Mateus-Tique, is that
Liquidity Services' approach to selling unwanted inventory
creates competition that benefits business and government