Keeping excess inventory around can be a drain on your company’s financial resources. The space used to store excess inventory could be used to house products that are actually selling, so instead of keeping old products around, why not find a way to profit off of them? Here are some of the ways you can sell excess inventory:
Create new bundles.
Take products that have been sitting around your warehouse for months and bundle them together with other products that are flying off of the shelves. Customers tend to perceive bundled products as a good deal, so this may encourage them to spend more with you and try new products they otherwise wouldn’t have.
Donate products to charity.
Although donating your excess inventory to charity won’t immediately add dollars to your bank account, it will help you earn a tax deduction. According to Internal Revenue Tax Code Section 170 (e)(3), companies that choose to donate to charity may qualify for a deduction of up to twice the cost of the goods. Not only will this save your business a little bit of money, but it’s also a great way to help other people in the community.
Most retailers know to offer steep discounts on items that are simply not selling as planned, but this doesn’t always work. Instead of offering a flat percentage off the retail price, offer discounts when customers purchase a higher quantity, such as a buy one get one free or half off discount. This is often more effective than offering a discount off of single items because customers feel they are getting more for their money.
Create an event.
Sales have become so common that customers don’t really get excited about them anymore—that is, unless you turn them into an event. Plan on running the sale for a limited time only—think 24 to 48 hours—and promote it heavily in the days leading up to it via email and social media. Instead of advertising it as a basic sale, use terms like “flash sale” or “24-hour sale” so customers feel a sense of urgency. When you create buzz about your discounted items, it doesn’t seem like a standard sale, but a newsworthy event, so customers are more excited to “attend” by shopping.
Sell it to another business.
Many retailers, manufacturers and product brokers end up selling excess inventory to an inventory liquidator. Some websites, such as Liquidation.com, have an auction format where the excess inventory is sold to the highest bidder. On these websites, the seller is not paid until the inventory is purchased and the payment has been processed. Others, such as InstantLiquidators.com or MerchandiseUSA.com simply buy the excess inventory from the retailer, manufacturer or distributor instead of auctioning it off. If you are hoping to get cash quickly in exchange for your inventory, choose one of these websites instead of those that auction off your goods.
How do you usually sell off excess inventory? Share your go-to strategies in the comments below!Business & Finance Articles on Business 2 Community