Look, if you’re dealing with surplus inventory, you’re hardly alone.
Excess inventory is always one of the hazards of operating a business. And it makes complete sense. If you’re running a restaurant, operating a furniture showroom, or just have excess equipment on hand, it’s inevitable you’ll need to find ways to move that inventory.
This is just one of the costs of doing business, but it’s also why liquidation services are so popular. But that doesn’t mean you have to slash prices on everything, and discount all your products, to get rid of that overstock.
Instead of doing that, consider these eight easy strategies for more efficient inventory management.
1. Consider Price Cuts
The onset of the COVID economy has in many ways changed the dynamics of the marketing and promotional world.
That’s why now is probably a good time to review your portfolio pricing, and decide to adjust those things that don’t make sense. Take the time to review your competitors and internal metrics, and use this to assess your alternatives.
Obviously you’ll want to preserve your return on investment as much as possible, but remember you’re trying to move and liquidate surplus inventory. Some of this inventory may sell better than others, which will boost your margin and allow you to make sacrifices elsewhere.
2. Try Out Complementary Promos
Another good way to liquidate slow-moving inventory, without obviously lowering overall retail prices, is to create sets of complementary products. This technique allows you to cut the price of something that is a slow seller by bundling it with a complementary product that has a better track record.
3. Make Long-Term Plans
Prioritize investing in high-performing products over a complete selection of items.
Before purchasing excess inventory, take preemptive measures by working with your suppliers on staggered shipping, shared risk solutions, or even extended payment terms.
If production hasn’t started for upcoming seasons, make purchasing adjustments to items that are in high demand. In the end, focus on top performers rather than just having a full selection of items.
4. Consider an Auction
One of the most successful methods to liquidate business assets in a timely manner is to auction off excess inventory.
In a restaurant auction, for instance, an auction company will use social media, email blasts, targeted lists, and other marketing campaigns to reach the largest possible audience prior to the auction.
It’s a great opportunity for potential buyers, who are usually granted an inspection period to review the items up for auction. Sellers are paid in a timely fashion, often within just a few business days, which is why this is such an attractive option for managing slow-moving inventory.
5. Offer More Sales
This one might seem obvious, but that’s for a good reason: it works.
Who wouldn’t feel drawn to enter a business that has a sign in its window advertising a 50% off sale? Proprietors do this all the time, and it’s understood that these discounts are enacted for reasons of inventory liquidation.
So you can attract new buyers and sell your overstock inventory at reasonable prices through the simple expedient of offering steep discounts. Your margins will be lower, but it’s better by far than having unsold items sitting around.
6. Choose Bulk Discounts Over Markdowns
Bulk or volume discounts are an excellent way to help move obsolete inventory. The method is simple: buyers get a bigger discount if they purchase products in bulk.
If you have an excess inventory problem, incentivize buyers to acquire multiple units at a great price by offering progressive discounts. In other words, buyers get a 30%, 40%, or 50% discount if they buy three, four, or five or more units, respectively. And if all else fails, there’s always the venerable BOGO (buy one, get one) which is a tested inventory management technique.
7. Approach Startups
Look, everyone has to start somewhere.
Basic equipment is needed by startup companies; just remember what it was like when your own business was getting started. A new restaurant, for instance, will have a great need for equipment, and they’ll be interested in whatever you have to get rid of.
These businesses want efficiency, durability, and bargain pricing. Because they do not have a lot of funds, they may look to buy used equipment if they are out of money. If they are new to the industry, they may also need some educating about what they need to buy. Make this an opportunity to reach a concentrated audience.
8. Try the Classifieds
If all else fails, don’t overlook the power of classifieds and online marketplaces. These can be a lifesaver when it comes to offloading that surplus inventory.
Local online ad postings, such as on Craigslist or Facebook Marketplace, are free and are great for advertising used equipment. You can get rid of your old stock at a fast pace if the right customer finds it.
Plus, there’s the advantage of working with nearby businesses, and thereby lowering shipping costs. And the sooner you unload all that extra inventory, the sooner you begin the next phase of your business adventure, whatever that might be.
Get Help Liquidating Your Surplus Inventory
Every business at some point has to deal with issues of surplus inventory.
Trying to keep ahead of this problem has an undeniable effect on forecasting beyond just its financial impact. The key is how to achieve successful inventory liquidation without taking a hit to your bottom line.
Fortunately, this isn’t something you have to figure out on your own. With TAGeX Brands’ liquidation services, we have the professionals who can help you negotiate this complicated process. So go ahead and contact us today, and see how we can help.