Article Written By: Simon Ackland | SMI Business Impact
When credit is tight and client spending is threatened, cash is king.
So why hold dead inventory or slow moving stock. If you do, you have several problems in one. First, you've got money tied up in that inventory, money that could be put to good use. Second, you have to pay rent to store it. Third, the longer it sits, the more its value may fade. And more.
But so many people I talk to are concerned about getting good value for this slow moving stock or even recovering what they paid for it.Get over it! It makes sense to move it out. This may mean slashing prices till it hurts...but if that gets it moving you will be better off with the cash in the long run.
Consider the opportunity cost of that cash...what? That's right, you always have choices; hold the stock and hang out for your price or move it fast and get that cash working in more productive areas. There is the opportunity cost of doing nothing. You could bolster some marketing efforts to bring new customers, or switch to some higher demand stock and increase sales, or upgrade your website...any number of possibilities.
Or, what about giving it away? Use dead inventory as a sales stimulus for your other products. Tie a freebie to sales of other product and get your whole operation going.
Here is a list of 10 Ways To Get Your Old Stock Moving...be creative:
1. Sell the whole shooting match for one low price. Its fast, no distractions, get on with your business.
2. What about an overseas market. What doesn't sell here may fly off the shelves in another country...get on the phone (or Skype and save a few dollars on calls).
3. Trade or barter your surplus stock for advertising.
4. Free gift idea for another company. Your stock might be ideal for another company to add to their stock to boost sales...sell them the lot.
5. Try a tandem mailing with another company. This is a great idea because each company can gain access to the others client list. Find a complementary company to approach. The right combination of stock could stimulate sales for both of you.
6. Weekend markets, car-boot sales, even garage sales. Why not! Get the kids envolved. Find market stall owners that are looking for cheap stock.
7. Bargain basement websites. Find one that allows individual vendors to set up a virtual shop...or set up your own "end of run" or old stock website store and turn it into another business opportunity.
8. Buying clubs...you may be surprised how many there are. Try a Google search.
9. Invite groups like staff social clubs to an exclusive opening and offer a donation towards their annual events.
10. Auction it! Hold an event or send the stock to an established auction house or auction it online. If you hold an auction event, remember to market it and get a marketing message into the hands of every attendee...a coupon, a brochure or a sales piece.
Like I said earlier, get creative. Step outside the square...dare I say, "be innovative, be entrepreneurial".
To your business success....Simon
