Inventory is meant to be sold. Any unsold inventory can pile up over time eating into space in your stockroom or warehouse. Let us take a luggage store as an example, you have an inventory of a boy’s handbag in your luggage store that doesn’t sell and doesn’t have a high likelihood of selling in the future. We refer to that inventory of the boy’s handbags as dead stock.
Deadstock by definition is a stock of products that are not likely to ever leave the shelves in your shop.
A common error of your retail businesses is not taking any action to obviate their stock, meaning these products still occupy space within the warehouse and slowly drain valuable finances which might be allocated towards business growth.
How software for shop management can avoid dead stock?
ENON shop management software has features such as demand forecasting and inventory forecasting to help find that balance. Sellers can stock accordingly by predicting product demand and certain sales. This will change in complexity counting on your business age, the capital, and your existing data, but taking the time to forecast sales will help you to streamline your inventory management and reduce costs. The shop management software can also automate process flows to avoid human error and oversight.
How to Clear Dead Stock Inventory?
Give out massive discounts keeping in mind this unwanted stock is draining resources, this sort of discount usually helps you in giving you a fresh start in terms of acquiring or getting a new set of products that are more suitable for the present market and your business and customers.
Bundle your product with other fast-selling products, in case of bundling products we need to make sure that the cost of the package is such that the cost of the bundle is lower than if products are purchased individually. This would help you get customer satisfaction and also help you get rid of dead stock from your inventory.
Treat Your Staff
This is one the easiest way to get rid of dead stock, you may give the dead stock to your staff as a performance bonus, festival bonus, or just as a sign of gratitude.
This would help in boosting the employee morals and employee satisfaction along with the added benefit of getting rid of dead stock.
Give it off for free to Charity
If your dead stock is such that it cannot be given in discount, bundled, given to staff due to reasons such as the product is made for an event and the event is canceled, the product degraded or damaged in storage and the refurbishing cost is high. We can give it to charity, this would help us in creating a positive brand image in the society.
Well, if you follow all of those tactics, will your dead stock get away completely? Nope, there’s no certain answer thereto, but the above steps can assist you to identify loopholes and keep dead stock in restraint or check. You’ll have to revisit these strategies on an endless basis and adjust them to support your business needs and market conditions.