Tips for Getting 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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