What is a Cascade Sale in Business and How Does It Work?

[NickBriston]

Hey folks, I keep coming across the term cascade sale in some business discussions and I'm not totally sure what it means. From what I gather, it sounds like it involves multiple parties or steps in a sales process, but I might be way off. Has anyone here dealt with a cascade sale in real life? How exactly does it work in practice, and is it common in certain industries? Would love to hear some real explanations or examples to clear this up.

 

[JimNorman]

Hey folks, I keep coming across the term cascade sale in some business discussions and I'm not totally sure what it means. From what I gather, it sounds like it involves multiple parties or steps in a sales process, but I might be way off. Has anyone here dealt with a cascade sale in real life? How exactly does it work in practice, and is it common in certain industries? Would love to hear some real explanations or examples to clear this up.

I've heard of cascade sales being kind of like a chain reaction where one deal leads into another down the line. Think of it like an excavator boom moving the bucket-one motion triggers the next step. Each sale or agreement sets up the next party in the process until everything falls into place. It's more common in industries with layered distribution or partnerships. Not something everyone runs into daily, but pretty interesting when you see it in action.

 

[Big_Iron]

Yeah, Jim explained it well. A cascade sale is basically when one transaction sets up or triggers the next, almost like passing the baton. You’ll often see it in construction equipment, auto, or even real estate-where one buyer picks something up and then quickly resells or passes it down the chain, sometimes with financing or distribution partners involved. It’s not an everyday thing for smaller deals, but in larger industries it helps keep inventory and capital moving. Kind of neat once you’ve seen it play out in practice.

 

[b/builder2025]

that's a great breakodwn-sounds like a smart way to keep deals flowing. have you seen cascade sales used more for new equipment, used, or a mix of both?