When the stockroom is full to the rafters, all retailers see is tied up revenue. That’s why it’s crucial to have strategies in place to liquidate surplus inventory. It’s taking up space in your stockroom and it represents money you could be spending on other things.
Let’s look at some tips for liquidating surplus inventory: smart ways to get rid of excess stock.
All healthy retailers perform regular inventories. Knowing what’s in your stockroom lets you know when it’s time to liquidate. Regular tracking helps you avoid the “white elephant” effect of excess stock.
But there are many other things you can do to move stock that’s been around too long.
Merchandising magic that moves.
Sometimes, sales forecasts don’t pan out. Bad timing for any given item may be the culprit, when it comes to excess stock, also. Whatever the reason, products you may have believed would sell more quickly than they did can benefit from a little merchandising magic to move them.
Positioning is a time-honored retail merchandising technique that can often do the trick. Just moving the sluggish inventory to another position in the store changes consumer perspective.
Sometimes, all retailers need to do is move the item to a different shelf, or organize it differently in relation to other, similar items. Grouping things by color can have an effect, especially when colors are selected to compliment the item and draw attention.
This approach is especially useful for products you believe have retail potential. If you believe that your in-store merchandising hasn’t showcased the product to best highlight its value, trying another approach is always in order. Before you try the next tip, pay special attention to how you feel about the product.
Is it a winner? Give it another chance in a different aisle, on a different shelf, or in a feature display.
If refreshing your merchandising doesn’t work the excess stock-moving magic, it’s time to try strategic discounts. Gradually reducing the price of the item over time, coupled with online and in-store promotional strategies can move it out. Start small and build the discount in smart increments.
A limited time offer or sale is another way to alert your customers to the discount. Promoting a “flash sale” or “one-time opportunity” can get shoppers interested. They may have seen the item before, but were waiting for it to be offered at their preferred price point.
Break out the party favors. Set up a table on the sidewalk. Create an experience with an event featuring live music. Creating a little buzz and drawing shoppers to your promotion with an event is a great way to move that excess stock.
But this is a strategy you should apply sparingly. Going overboard with too many promotional events can alienate customers and become too familiar. A quality promotional event isn’t something that happens every week, or even every month. It’s special!
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