Inventory sales time
December 15, 2011 No CommentsStores, whether online or physical, usually have once-a-year inventory sales. This is when the old stock of goods that they have are disposed off by offering them at reduced prices.
The sale is necessary in order to make way for newer goods. Brick-and-mortar stores need the physical space, but what about online stores? They don’t need that much space since the stock is shown on the website. But some online stores still have to keep a physical inventory, and it’s best to dispose of them before they become too old as to become unsellable.
Also, the website itself can become too busy or too cluttered if there are too many goods displayed.
The easiest way to dispose of slow moving merchandise is to sell them at the smallest profit margin possible. It may even be best to sell them at cost.
Under a worst-case scenario, it’s all right to sell them off at a loss. This is better than for the inventory to occupy space, grow old and become useless after a couple of years.
The hard-to-sell products can also be bundled with other goods that sell, even if below expectations. If an online store sells leather shoes, for example, the owner of the site can offer a leather belt to go with every pair or shoes ordered.
All the entrepreneur needs to know is whether or not he still makes a profit when disposing of one belt as a freebie or at a huge discount for every pair of shoes sold. If the answer is yes, then he should rid himself of the slow movers and make way for better selling items that he does not carry, like leather bags.
This yearend is an excellent time to hold an inventory sale.
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