Sometimes if you hold onto products for long enough they become collectible.
Most businesses do not want to do this. By the time the stock has stopped moving, they want it out of their premises.
It isn’t earning any money, but it does cost them to keep it.
If you’re looking to move old inventory, here are some techniques that you can consider.
ONE: BUNDLING OF COMPLEMENTARY PRODUCTS FOR ONE FIXED PRICE:
The strategy would include bundling old inventory with a new or desirable product to move the old inventory out.
- Five for the price of two (or any numeric combination)
- Buy one, get one free
TWO: EBAY, AUCTIONEERS OR CLEARANCE HOUSES:
eBay is a great channel to use for end of run, overstock and out of season inventory.
Businesses can set up shops online for a modest monthly fee and use the shop as their clearance house.
THREE: CLOSEOUT PRICING MODEL:
This is a pricing technique whereby products are sold at steep discounts in order to move old inventory.
The goal with this strategy is to minimize your losses (as opposed to making any profit).
Rebadge pricing tags without mentioning sale anywhere. Just print new reduced price tag and place item back on the rack.
FOUR: VALUE-ADDING OR BONUSES:
This technique is very common in infomercials where a product is sold with “free” extras.
FIVE: ALLOWING FLEXIBLE PAYMENT OPTIONS:
Examples may include:
Multiple payment options which make the price point seem more attractive (for example, four easy, monthly payments of $X)
For large equipment, such as televisions, you may considering offering finance arrangements through a third party financier.
SIX: INCENTIVISE SALESPEOPLE OR DEALERS:
Increase the commission reward for selling the old inventory.
SEVEN: RETURN UNSOLD GOODS:
Learn to buy on consignment or with the option to return to vendor if the goods don’t sell.
This generally applies to larger retailers with purchasing power.
EIGHT: CLOSEOUT, SURPLUS AND OVERSTOCK BUYERS:
Some firms specialize in purchasing closeout, surplus or overstock products. They typically look for large volume. Do an Internet search to see if there is a firm (or auction house) that is suited to your purpose.
READ: More about pricing strategy.