A stock surplus sounds good on paper, but too much inventory can actually hurt a company’s bottom line. Excess stock takes up valuable retail space, overflows backrooms, and ties up capital. That’s why it’s a good idea to regularly liquidate older inventory.
Follow these clever tricks to help move unwanted inventory out of the store.
1. Let Someone Else Sell It
Not every retailer wants to find a creative way to push old inventory. That’s why it may be better to let another service sell it for you. Store Liquidation Companies will buy excess stock to sell themselves. While they won’t pay the suggested retail price, selling to a liquidator is a sure way to clear out that storage room in a hurry.
2. Try a New Display
Older inventory isn’t always outdated or unwanted. Sometimes it just gets lost in the shuffle. Rearranging merchandise inside a retail store is one way to bring any leftover stock back into focus. Try repositioning racks or reorganizing shelves to bring these items to the forefront. For instance, if merchandise on the lower shelves isn’t moving, try placing it at eye level to garner more interest.
3. Put in On Sale
Customers can’t pass up a good sale. In fact, four out of five Americans look for promotions. Any business owner dealing with a stock surplus should consider discounting the items. However, don’t drop the prices too quickly. Try starting with a 10-percent discount to see how the merchandise sells. As time passes, continue increasing the deal until everything sells out.
4. Give It Away to Customers
Shoppers love a good deal, and free is even better. Retailers with a lot of excess inventory should consider giving it away as a “gift with purchase.” Whenever a customer makes a purchase that exceeds a predetermined threshold, simply toss in some inexpensive merchandise for free. This tactic brings in more consumers and helps retailers reduce their inventory surplus.
5. Create Bundles
Bundling popular merchandise with leftover inventory is a great way to increase sales and make room for new arrivals. Customers will feel like they’re getting an amazing deal. Bundles are especially popular during the holiday season when shoppers want to stock up on gifts. It’s also a smart way to introduce shoppers to products they didn’t know they needed before.
6. Try Returning the Surplus
While not always possible, some vendors will accept returns or exchanges on unsold goods. This tip works especially well if the store owner has a long-standing relationship with the vendor. Instead of risking the loss of a business partnership, many vendors will help find a way to help out. However, don’t expect to receive cash in hand. Vendors will most like offer a credit or new merchandise to take the old stock off your hands.
7. Donate the Excess
Retail stores can always benefit from tax deductions, and charitable donations are a great way to get more. Look for nonprofits, such as schools, churches, or other organizations, that could make good use of the unsold merchandise. When tax season rolls around, donations can help lower a company’s overall tax burden. However, review state and local regulations before going this route.
Say Goodbye to Overflowing Stock Rooms
Having too much inventory is never a good thing, but there are plenty of ways to move it out without losing money. As a retailer, it’s also wise to keep track of what customers tend to buy and what items sell best during each season.
Creating a game plan now will help ensure the inventory room stays clear after you liquidate surplus stock.
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