Did you know what slow-moving inventory can do to your business? It decreases your profit margins and slows down your cash flow. Piling up excess stock gives you nothing but problems. But, don’t stress! We’re here to help you liquidate your unsold items! Here are five ways to convert your dead stock into cash:
1. Identify your dead stock
First, you must identify your slow-moving items. Separate these items from the best sellers. This will make it easier for you to know what you should do to turn your dead stock into real cash. However, if you often find many unsold items, you will have to change your procurement strategy.
If you come across the same dead stock over and over again, then you haven’t learned from your mistakes. You may have to completely remove those unsold items from your purchase list next time. This is why you need proper inventory management to help you buy the right items in the right amount, based on customer demand.
2. Like it or not, implement discounts!
After identifying dead stok, the next step is to implement discounts. Yes, this does sound cliché and perhaps make you worry about your margins. However, discounting slow-moving items is necessary to remove them as soon as possible before they become obsolete.
Urgency and the fear of missing out (FOMO) have a serious psychological effect on consumers, making them want to buy as soon as possible before the items run out. This is why consumers are attracted to flash sales. You can make an announcement on your social media or send your customers newsletters to notify them of your limited time sale. You can run it on your website or an e-commerce platform.
Clearance sales are usually done two or three times a year. You can collect items that haven’t sold in the last three to six months and discount them for as long as you want until they’re sold out. Create a section on your website that lets your web visitors know that there will be a clearance sale.
Seasonal sales are usually run as the seasons change. For example, you can discount your summer collection items that haven’t sold before summer ends, or in the beginning of winter. Create a pop up banner on your website to notify your web visitors that a seasonal sale is ongoing.
3. Create product bundles
One of the effective ways to get rid of dead stock quickly is by using product bundling strategies. You can combine your slow-moving items with top-selling ones and discount them. Or, you can combine non-popular items with the ones with high margins. Product bundling works, because buyers prefer to buy several items together at a lower price than to buy them separately but at a higher price.
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4. Display your slow-moving items the right way
If you have a physical store, then the right product display is the key. Perhaps you have been displaying your products in inaccessible locations in the store so that customers can’t easily find them. From now on, place your slow-moving items on front shelves, in each aisle, near the entrance, and at the checkout counter. If you run an e-commerce, then feature these items in a special section or in the homepage of your website.
5. Change the way you market your products
Make your product images more appealing to customers. Prioritize to advertise your dead stock items first. Perform remarketing techniques, by showing your unsold items to those who have clicked on your ads or visited your product pages. Send personalized emails offering these products to your customers according to their preferences.