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Dealing with old stocks

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  • Dealing with old stocks

    There are times when shops still have enough of old stocks yet unsold and customers aren't interested in old stocks or models anymore. Sure this becomes a herculean task trying to sell off the old items even when put on offer. We try to create space for new releases by finding possible ways to get them sold. How do you manage this situation, do you resort to mixing up the stock as in old and new together

  • #2
    Re: Dealing with old stocks

    I always prefer discounting the old excess stock. In order to get rid of this stock you have to heavily discount them. Selling an item at a very low profit margin or even at a loss is better than it taking up shelf space. I notify the shoppers through emails and social media and sell the items within a specific period. I also created a section in my store and also in my website specifically for the old stock. Customers, especially bargainners have a chance to select from the old stock. Through this strategy, few or none of the stock goes to waste.

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    • #3
      Re: Dealing with old stocks

      I have no experience in that kind of retail but I see some stores holding sales once in a while to free their warehouse of spaces. Some stores even give away their old products at 50% discount. Late last year, I was able to buy a guitar at 50% off which is a steal. It is their clearance sale held on the birthday of the owner. They do it every year but the sale items are only those one year in stock. New guitars are priced regularly which is expensive.

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      • #4
        Re: Dealing with old stocks

        Sometimes when there is no demand for the goods you have procured in large quantity, you may not be able to sell your entire stock. In that case, there will be a lot of old stock in your warehouse. Since you cannot store the goods that are not selling well, you will have to clear it any way. Clearence sale is one easy way to sell old stock. You can reduce the price and encourage people to buy your old stock.

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        • #5
          Re: Dealing with old stocks

          I would say it wouldn't be good to mix new stocks to old ones. In my opinion it's much better to pair these old stocks with new stocks that aren't doing well. If the new stock is selling for 10 dollars, and you got your old stock for 3 dollars, you can sell both for 15 dollars. You get rid of the old stock and move the new one that isn't doing really well. If that doesn't work, you can sell them for a price where you can at least break even.

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          • #6
            Re: Dealing with old stocks

            The best way to get rid of old or out of demand stock is to sell it in the name of off-season sale. Most shops keep their stock on sale in front area offering handsome discounts with bold placards that clearly indicate old and new rates or a flat discount on printed price of the items. Businesses also advertise such "Sales" by handbills (Flyers) and even advertising through newspapers if they have significant amount of stocks for disposal.

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            • #7
              Re: Dealing with old stocks

              I find it highly valuable to consider long-term strategies in these times. The simple fact is that if you have stock you can't move, you're paying to warehouse it. It's taking up space that salable items could be generating profit with. In these scenarios, I think spending more money on cooking up fraudulent notions of "sales" to entice customers, or spending more money on low-return emergency advertising is short sighted.

              I like to make opportunities for future growth with old inventory. Donate it to charities who could use it, send it to places ravaged by natural disasters, make a general show of the effort. This serves as a marketing opportunity which can endear your brand to potential customers. Emotion is a powerful tool. People are not nearly as rational as they would like you to believe they are. Remember; branding isn't just your logos, or color choices, but rather what you do publicly, the visibility of your company.

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              • #8
                Re: Dealing with old stocks

                I think the best way to get rid of your old stocks is to sell them on discount but I will advice it to be done strategically. Start off with something small, say 30% and then continue to discount.

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                • #9
                  Re: Dealing with old stocks

                  I believe that it's important to get rid of old stock as much as possible to make way for new arrivals. I few days markdown event would probably be a good way to go. I believe that mixing the old with the new is not the ideal thing to do even though times it might be unavoidable. The preferred situation is to have new arrivals as much as possible which will serve to excite the customers more so that they would probably want to spend more time explore time the store to explore and this would possibly increase the event of a sale.

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                  • #10
                    Originally posted by explorerx7 View Post
                    Re: Dealing with old stocks

                    I believe that it's important to get rid of old stock as much as possible to make way for new arrivals. I few days markdown event would probably be a good way to go. I believe that mixing the old with the new is not the ideal thing to do even though times it might be unavoidable. The preferred situation is to have new arrivals as much as possible which will serve to excite the customers more so that they would probably want to spend more time explore time the store to explore and this would possibly increase the event of a sale.
                    This reminds me of a small warehouse manager who said that his main problem is not the expiration of the goods because they are not perishable but the space. When the stocks are old that means congestion in the warehouse. If the sales department is amiss with its duty of selling the old stocks then the recourse would be to sell at a discount just to remove those old stocks from the warehouse.

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                    • #11
                      This is a very common experience for most companies over here. In fact, I would tag the problem to be as a result of of over producing the needed products without having all the consumers need information at hand. Consumers preference changes over time, so you can't keep producing the same thing and expect them to keep buying it. What can be done to get rid of such old stock would be to cut down its selling price or use them as gift products.

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