Smart Ways to Get Rid of Excess Stock
It is a general complaint we hear at the Albert O’Connor & Co Accountants office from our retail clients that operate small and medium-sized businesses. Having excess stock will not only take up precious backroom or shelf space but can also tie up capital and can keep you from re-investing in your business or buying things you actually need. This rings especially true if you are operating out of a tight space without the option to expand.
Excess inventory can be a result of purchasing decisions, marketing or a change in the marketplace. However, there are a number of things you can do to sell or liquidate your slow-movers. Here are some tips from the Albert O’Connor & Co Accountants team that can help you move your excess stock:
- Refresh, remerchandise, and remarket your products – make items look new and fresh in-store or in your marketing but be aware of associated promotional costs.
- Double and triple-expose your merchandise — can you display in more places in order to attract attention?
- Discount products — create a strategy around discounting so that you motivate shoppers.
- Bundle excess stock — with complimentary or faster-moving products.
- Use excess stock as freebies or incentives — offer low-cost items as an incentive for shoppers who spend more than a certain amount.
- Sell them to liquidators and marketplaces — this may result in a lower return but free up space and capital for your business.
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