You may think that your products are selling well, revenue is increasing and the customers are also returning to your store. But have you checked your inventory? There is a high chance with every season that an ever increasing amount of products that won’t sell. This is what we refer to dead stock. Basically these are the products that are unlikely to ever move from the shelves. May be they are not doing any harm, but they are definitely taking a lot of valuable space and finances which can be put towards growth in a better way.
Just think how much you are losing through carrying costs by holding onto these dead stocks. For every shelf that’s dedicated to these products, it’s a lost opportunity to stock up more of top selling products. Bustleboard is a marketplace where people can buy dead stock in USA who need it.
Here are 3 ways for dead stock management.
Bundle up your dead stock with current products and sell them at a discount. Using this process, you can move a high volume of items fast and get freeloading dead stock items out of your inventory quickly. The profit margins may appear to take a beating but is always better to sell off as much as you can. You will be also able to recoup the cost price and you don’t have to manage any hidden cost of carrying those items.
Another way to clear the dead stock inventory is to use them as giveaways- gifts with incentives or purchases. We all love free gifts. Offering good value for money is one of the best incentive to get your customers spending on things. As everyone doesn’t want to pay full so a free gift or a discount will keep them spending.
2.Return to your supplier
You have tried your items to sell the dead stock at a discount, but still customers aren’t getting attracted. May be the stock have arrived recently and then you figured out that those products aren’t attracting your customers.
So, the best way is to sell it back to your supplier. If the product is still current and have return policy, convince your supplier to take back that product. But at the same time be prepared of making a small loss for returning back dead stock to the supplier. Probably you will be charged a restocking fee of around 10 percent as repacking will be needed. In this case, you need to weigh the ongoing cost of holding onto the stock.
Let’s assume that you are a clothing retailer in USA and you have just found a carton of dead stock lying in a corner of a warehouse. You still have the chance of selling that product to the customers as they are still not touched. So, it’s just makes no sense to throw it to clean up your place, but what other option you have?
There are many charities who would be willing to accept your dead stock as a donation. After all, you are doing a good deed by donating it to the charity. Depending on the tax jurisdiction, you may also get a tax write-off.