It’s almost the end of the year. It is time to clean out the stockroom and check the warehouse for items you can put up on sale. But while cleaning the stock room, you found two boxes of products that you haven’t sold from last year’s inventory. What are you going to do with these items? How can you liquidate them? How did you miss out on these?
While you’re trying not to be angry at yourself and your entire staff for missing two entire boxes of products on the inventory, take this time to think on your feet. You have to liquidate these items. You have to figure out a way to recuperate the money you spent buying and producing these.
Put Them Up for Sale
The most practical thing to do is to put them up for sale. Some companies prefer to repurpose slow-moving items, but that will waste resources than improve the bottom line. How much did you pay for these items? Check your sales report. Have you already recuperated the capital you spend on producing these products?
If you have, consider selling these surplus items cheaper than their original selling price. You can persuade more people to buy them when they are cheaper than originally priced. If, after a week, they are still not selling, slash the prices off until you’re selling them for the amount you paid for them.
Organize a Garage Sale
Once in awhile, businesses hold garage sales to sell some pre-loved equipment and things they use in the store. This usually happens when the business is about to upgrade their equipment or change the product line. Warehouses hold these kinds of sales because of excess inventory. They can also sell some unused and used items in the warehouse. Many people look for used pallet racking and containers because the brand-new ones are expensive.
What differentiates a garage sale from a traditional sale is that a garage sale is more informal. Buyers can haggle with the seller. It is up to the seller to approve the price offered by the buyer. If a buyer takes more items off the seller’s hand, the seller might even give one or two items for free.
Remarket and Triple-expose the Products
Create a separate marketing strategy for these products. Why were they slow-moving in the first place? If no one wants them, you are targeting the wrong audience. If it has been a while since they were first put on sale, the circumstances are different now. Your target market might finally see them for their worth.
You should also expose your products more. In your store, put the items in front of the store, so people will notice them when they enter the store. Put them also at the back, so they will not forget about it when browsing the items. Then, put some items near the counter, too, so the customers will still see them when they are paying.
In one survey, more than 90% of respondents said that they bundled items together to help move items. Bundling is a technique wherein you group certain items together. The business sells them for a slightly lower price than the amount buyers need to pay for them separately. This strategy allows businesses to get rid of items they no longer want without taking a bit hit on profits. For buyers, though, it’s a win-win situation.
Give Them as Freebies
This technique will only work with low-priced items. The best thing about this tactic is that it will persuade more customers to buy from your store. Even those who didn’t necessarily want to buy something will be encouraged to check out your items because of the freebies. If you are not going to recuperate the money you spend on these items, the least they can do is to generate leads.
Take Advantage of Tax Cuts
You can donate the items to your chosen charity. You will get some deductions out of them. Just check your state’s policies on it and remember never to over-declare the number of your donations. Aside from taxes, donating items can have a huge boost in your brand’s reputation. Letting the community know what you’re doing with your profits (and even excess inventory) will make them want to support you more.
There is no reason you should not improve your bottom line with excess inventory. It should not be a problem if you know how to take advantage of the opportunity. Make the most out of it by finding ways to offload them without necessarily taking a huge hit.