You’ve opened up shop and either stocked your brick and mortar or online shelves with tons of products that you know people will love. But even after marketing and promoting like crazy, you still have excess inventory of one or two products.
You might think your only option is to slash prices like crazy and pray that you at least break even but there are other options to consider. If you want to learn how to make room for new products without hurting your bottom line, stay tuned.
It’s Time to Let Go
The good news is that you’re not the only business with products that have been sitting for longer than you had planned. For every $1 of sales a company has, they are typically sitting on $1.43 in inventory. So while excess inventory isn’t unheard of, it can still cause serious growing pains. How long is too long for a product to sit? There are advantages and disadvantages of inventory but here are some telltale signs that it’s time to let go.
No Empty Space
Whether you’re operating an online store from your garage or have a physical retail location, it’s easy to run out of space. If there are new products you want to showcase but can’t give them the dedicated space they need to sell, it’s time to consider pushing out products that aren’t paying for the square footage they’re taking up.
You’re Having Heart Palpations
Maybe you misjudged the potential popularity of a product or invested more than you should have in securing a bulk number of items. Either way, products that cause you stress every time you look at them should be moved out as quickly as possible. You’ll feel as if a huge weight has been lifted once you’ve removed stress-inducing products.
Overhead Costs
If you’re renting storage space or spending money to display your inventory, you need to be doing more than just recouping your costs. Products that cost more to display than what they bring in should be moved out quickly to make space for new products that don’t suck up your working capital.
Outdated Products
If you sell perishable items or know that an updated version of your current product is set to release soon, you need to move outdated items quickly. There’s nothing worse than disposing of products because they were no longer relative to the market or safe for consumers.
Ancient Methods of Clearing Excess Inventory
If you’ve decided that it’s time to start emptying the shelves, there are several options you can consider when trying to figure out how to get rid of excess inventory. All have their own list of pros and cons and depending on your industry and product(s), the right answer will be different for each situation. But here’s what you can consider.
Deep Discounts
This is the option that most business owners look to first. It’s no secret that consumers love a great deal so by deeply slashing prices, you’ll be able to move products quickly and (hopefully) easily. But the problem with this excess inventory solution is that you rarely make a profit. You can hope to break even but in most cases, you might actually lose money.
Combo Deals
If it makes sense, creating package deals is another way to clear the shelves. If you have a product that sells itself, consider bundling it with the product that’s not selling. Consumers will feel like they’re getting a deal and if you price the bundle correctly, you will hopefully still make a slight profit. But again, it’s still possible to lose money with this solution.
Donate
If you’ve tried the previous solutions and still have products collecting dust, you can always donate them to either a secondhand store or an organization that will make good use of them. Depending on your approach and the product, this can be filed as a tax write-off for your business. But even if you get a tax credit, you’ll most certainly lose your initial investment.
Tradepay Can Save Your Profit Margin
If the previous options leave you with a twisted feeling in your stomach, there is one more option we would like to share with you today. It can not only protect your initial investment, but help you gain new customers while still securing a profit. The answer is…Tradepay!
Tradepay allows businesses to sell their products with a unique twist. Buyers complete their transactions by paying part cash and part virtual currency. So, if you paid $20 for a product and typically sell it for $100, you can sell it on Tradepay for $60 in cash and $40 in Trade Dollars. This still provides clients with a steep discount and you’ll not only protect your investment but come back with a decent profit.
Don’t forget that you’ll also get your hands on some Trade Dollars. This virtual currency allows you to take advantage of discounts on new products. You can either fill up the inventory space you cleared up or purchase marketing services to help your business, all at 40% less than you would pay otherwise.
Tradepay allows businesses to secure the cash flow they need to get through a rough patch, move excess or unsold inventory, and save time and resources. Once they’ve sold their products, they’re left with cash and virtual currency to invest in products that can take their business to a new level.
If you’ve been thinking about selling excess inventory or wondering where you can find excess inventory buyers, Tradepay is the first place you should consider. Head on over and take a look around. You can set up a profile for your business in only a few minutes and then browse other companies to start networking with and selling to.
There are always options when it comes to excess inventory management and maybe we’re a little biased, but Tradepay seems like the only option that allows you to protect your profit margin, market to new customers, and secure funding to purchase new products and services.
