Stale inventory is a costly nuisance. The rule of thumb is to sell goods taking up space on your floor within 90 days; after the three-month mark, stale inventory becomes dead inventory – much harder to move and nearly impossible to get top dollar for. Fortunately there are ways to recoup at least part of your investment. Here are six tried-and-true ideas.
Liquidate old inventory
For some owners this is the go-to tactic: slashing prices to make a sale. It’s more strategic to discount gradually – a smaller cut first, then a larger one if needed. Customers respond to urgency, which is why flash sales work so well: give just enough notice to reach as many customers as possible in a short window, build excitement and encourage buyers to act fast.
Bundle items together
Grouping a few products to sell for less than they’d cost individually creates a perception of added value that customers find hard to resist. When bundling complementary items, combine trendy products and hot sellers with items that aren’t moving well on their own.
Refresh your marketing
Sometimes it comes down to positioning. Move old stock to a more visible area and rearrange your display to draw attention – you may be surprised how the right approach quickly turns around sales on what you thought was hopelessly stale inventory.
Sell via an online marketplace
Some merchants open a small online store specifically to move items that aren’t selling in their physical shop, and it’s easy to get started on the major marketplaces. For one-off items, or if you rarely need to move dead stock, a simple classified listing offers a low-cost way to make a bit of money back.
Return excess goods
Contact your supplier to see if you can negotiate a return. You might pay a restocking fee, but at least you’ll cut some losses – and your odds are better if everything is in its original packaging. Explain why the stock was a mistake (too much ordered, wrong fit for your customers); if the supplier wants to keep you as a customer, a firm but friendly approach may pay off.
Take a tax deduction
Donating old inventory is another way to make the most of slow-moving stock. Some not-for-profits offer a receipt so you can claim the donation as a deduction, and many will accept large shipments that would otherwise be tough to move. Talk to your accountant about related deductions – you may be able to claim freight when you ship a donation. Going forward, take proactive steps to avoid accumulating excess stock; an efficient inventory management system helps lower operating costs and eliminate costly overstock.