Is your current situation with excess stock dragging your business down? Perhaps you ordered a lot of materials from a large company, then suddenly an order fell through. On the other hand, you might find that your new products on supermarket shelves aren’t moving as quickly as you want them to.
Excess inventory can be a serious problem for any business. Not only does it leave you unable to grow your company, but it has a pretty significant impact on your finances too. However, figuring out what to do with excess items can be quite a dilemma. Selling what you’ve got now through normal channels in sales or bundles might be out of the question – particularly if you have sales targets to meet.
Following, we’ll give you just a few suggestions for how you can prevent excess stock from draining your profits. From bundles, to tax write-offs, to simply asking for help.
1. Bundle it Up
If you’re not yet in “panic mode” with your excess stock, then it might be time to think about a different selling tactic. For instance, you might offer your retailers the chance to sell more of your products by offering “kits” or “bundles”. For instance, during holiday seasons or sales, you might offer a package that includes something extra that can be sold for a slightly higher price.
For instance, if you sell coffee grounds, you might also consider bundling some cookies in alongside them if you think that your cookies aren’t moving as quickly as they should be. Try to get creative with your bundling options, and avoid the temptation to give too much away for free – at the end of the day, you’re still trying to run a business. The only time you should give something away for free is if it benefits your brand.
Speaking of product giveaways – if you only have a small amount of excess inventory, then you might be able to consider giving it away as a donation. An incorporated business can earn income tax deductions by giving products to registered charities. This means that you can avoid liquidation, clear out some warehouse space, and even earn a little cash (though it’s probably going to be minimal).
Donations work best when they’re used to boost your brand image, with marketing stories and rewards that represent you as a more socially aware and authentic business. You might consider something like this when your business is growing or thinking about going international. On the other hand, if you’re simply struggling to sell – donations aren’t a good idea as they could mean the end of your business. After all, all companies need profits to survive.
3. Find New Ways to Sell
Finally, the best way to avoid profit problems with your excess stock is to simply get a little help with finding new solutions for sales. The chances are that you simply don’t have the right connections to make money on your excess inventory when you need it most – but that doesn’t mean that there aren’t other people out there who can help.
Dynamic Retail Solutions, for instance, have an extensive network of clients on an international and local basis that are often searching for good deals on excess inventory. This means that they can assist you with converting excess stock into cash in no time. There are no worries about damaging your market position with significant discounts, and no concerns about losing your place on supermarket shelves.
Remember to Prepare for the Future
While it’s always a good idea to plan ahead and attempt to avoid additional excess stock problems in the future with inventory management techniques, it’s good to know that there’s a solution available when an inventory issue presents itself.
Keep on top of your business, work to be prepared, and know exactly who you’re going to turn to when you need to convert stock into cash, fast.
If you have excess stock sitting in your inventory, please feel free to give Jeff a call today on 0411 243 244