Even the most tightly regulated business can have excess inventory. Forecasting sales and organizing stock levels to match is a constantly moving picture, and it’s easy to get it wrong.
Demand in the market can change suddenly and without warning. Economic conditions fluctuate, leaving a business with surplus stock, affecting profitability, and causing problems with storage space. However, excess inventory can present a fresh sales or marketing opportunity.
If all else fails, it’s still possible to turn unwanted stock into a plus point for the company, even if disposal is the only option. Read on to find out more.
What Is Excess Inventory?
Excess inventory is stock that hasn’t been sold and probably won’t sell. A good example is a food item that has passed its ‘sell by’ date or a seasonal food product like a chocolate egg still on the shelf after Easter.
Sometimes, excess inventory is also called overstock or deadstock. There’s no time limit to classify a product as excess inventory; some items may be years old.
Excess inventory needs proactive and forward-thinking management. Careless disposal of unwanted stock is a wasted business opportunity and could also have environmental impacts that adversely affect reputation.
To protect its exclusivity, Burberry, the high-end retailer, incinerated $37 million worth of clothing and perfume in 2017, which did nothing for its reputation.
But Burberry was not alone; some other big-name brands were also in the frame. Burberry has since turned this harmful decision into a marketing opportunity, using ‘feel good’ headlines about sustainability, donation, and recycling.
5 Strategies for Excess Inventory Management
Discounts and Money Off Sales
Discounting items is the first ‘go-to’ strategy for any retailer or business with excess inventory. Lower prices incentivize customers who are either hunting for a bargain or want to try new products they mightn’t previously have considered.
Dropping prices opens items to a new market segment that considers these goods out of their price range.
Strategic discounting should form a regular part of any good sales plan. There’s a vast amount of valuable data on the psychology of discounts and behavioral economics that help businesses maximize price cutting to suit their industry.
The nature of the goods, such as seasonal products, usually suggests the best time to do this. Customers will come to expect these discount windows and wait to bag a bargain.
Bundling Services or Products
Bundling goods or services with a product can help shift unwanted inventory. For example, you could place a low-sale product alongside a selling product.
Businesses that offer services can bundle a product with a popular service, like a hairdresser offering a shampoo with a cut and blow dry. With a service that’s selling slowly, try offering a discount for multiple bookings.
Change Location, Repack or Re-present
Changing where an item is in a shop can make a big difference to impulse buyers. Presenting products with an attractive display will also draw more attention and encourage shoppers to browse and purchase.
Repackaging excess inventory gives products a new look or purpose. Businesses can sell an item either as a new product or as an existing product but in a new format.
Repackaged products don’t have to be cheaper than their original price; they could be priced up, a double whammy.
Placing three or four items in an attractive box or container is eye-catching, suggesting to customers that they’re getting a bargain even if the price isn’t discounted. Repackaging can attract new customers to a product and increase brand recognition and loyalty.
Find New Online Sales Channels
Sometimes, businesses can get rid of excess inventory online. If you’re currently selling online, you might want to consider different sales channels in addition to your regular routes.
Online selling is a good option for businesses that mainly sell to a local market, as it extends their reach and generates more customers for their products. There are also companies specializing in buying old or unwanted stock.
Donating
When disposing of excess inventory, you should consider donating useful items to those in need. Taking clothes and other essentials to your local Goodwill or other thrift stores can make a real difference to struggling families, so you can get rid of items you don’t need while supporting others in the process.
Professional junk removal services like Nixxit will look to donate items wherever possible. It’s a great way to help your community while freeing space within your own business. Any item with potential longevity will be donated and put to good use, keeping stock away from landfills to be utilized by those in need.
Donating is a tangible way to demonstrate to customers your commitment to sustainability. While you won’t profit from giving stock away, you can clear warehouses of old unwanted stock by donating usable items in an environmentally friendly manner.
Need Help with Junk Removal in the Bay Area, CA?
Nixxit Junk Removal can help with your junk removal needs in the Bay Area.
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Recycle or Scrap
Some junk removal companies offer product destruction services to clear excess inventory, ensuring environmentally friendly disposal or, where possible, recycling. This will depend on your requirements as a company.
Professional excess inventory removal removes the headache of unwanted stock falling into the wrong hands and appearing as cheap counterfeits a few weeks later, protecting reputation and brand.
Business owners don’t have to worry about the safest and greenest way to dispose of their unwanted stock. A reputable junk removal company will find the most eco-friendly way to dispose of your items, recycling as much as possible.
Look for a junk removal companythat offers Certificates of Destruction (COD) for eco-friendly disposal. Nixxit will always look to recycle applicable items or dispose of them in the most environmentally friendly way possible. These methods may also depend on companies’ guidelines and requirements or policies around product disposal.
Frequently Asked Questions
How Is Excess Inventory Removed From the Supply Chain?
There are many different ways to remove excess inventory. Businesses should focus first on avenues likely to result in a financial return. After that, consider donating or recycling via a junk removal company. Managing excess inventory requires a proactive strategy; otherwise, it will clutter storerooms and take up valuable space.
Need Help With Excess Inventory in the Bay Area, CA? We Can Help.
If your business is drowning in excess inventory, it could be time to call the professionals. Nixxit Junk Removal Services is a professional junk clearance company serving domestic and business customers in the Bay Area, CA. Let Nixxit take the strain off your excess inventory. We can also clear out old fixtures, fittings, and other debris and junk.
We’ll dispose of your unwanted stock safely and environmentally appropriately, protecting your brand and profits. Confirm your location below and call us todayfor a quick quote on our retail store services.
