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How to turn stale inventory into cash?

How to turn stale inventory into cash?

Posted by Maria Diaz on Nov 2, 2015 2:21:17 PM

Slow-moving merchandise can become a headache and a challenge for retailers as it represents cash tied up in inventory. Holding on to static stock is a costly business practice, as that item that is not selling takes up valuable space in your store (which fast-selling products could fill generating more profits for your business). Stale inventory also gives to your customers the wrong impression that the store has nothing new.

EuroTill460Overstocked items, sourcing the wrong products and outdated merchandise are usually the main reasons why retailers have to deal with slow-moving merchandise.

If you are struggling to sell some items in your store, read the following tips and learn how to convert your stale inventory into cash:

1.- Relocation

Believe it or not, the layout of your store can make the difference between sold out items and over-stocked. Placing your products strategically will make a huge difference in your sales, as customers will find what they need more easily. Relocating your merchandise is also beneficial for your sales staff, as it will ensure that the items are top of mind when assisting customers.

 

2.- Discounting

SpecialOfferOver price could be another reason why your merchandise is not moving. Try reducing the price of your stole inventory and evaluate the response of your customers. Don’t forget to make very clear the deal that your customers are getting with a signage.

 

3.- Bundling

prod_icon256What better way to move your merchandise than to pair slow sellers with hot sellers? Strategic bundles will help you sell your merchandise quicker, you just need to bundle two or more items together and increase the price slightly. With this strategy you will be giving to your customers a better value for their money and they will appreciate it!

 

4.- Signage

hotAn eye catch signage can help you to drive more sales on slow-moving items. You just need to place your stale inventory in a display (could be close to the checkout area or at the beginning of the store) with an appealing signage with “Hot Items” on it. Ask your sales staff to share with the customer the features of the products on display with the customers.

 

5.- Incentivise your staff

carrot-incentiveYour sales staff can also make the difference in the sales of your stale inventory. Give an incentive to them if they help you to sell the slow-moving merchandise. In order to facilitate their job, explain at them the top 3 selling points of the merchandise and ask them to share it with the customers.

 

Stale inventory can be dangerous for any store so don’t waste more time and put on action the previous tips that will help you to convert stale inventory into cash.

 

Topics: inventory, Retail, slow moving items, slow moving merchandise, stale inventory, stock