Creating space for a unique selection of items can be a challenging but necessary part of running a retail business. With the busy holiday shopping season right around the corner, many business owners are looking for simple ways to liquidate part or all of their on-hand inventory to make room for new supplies. Liquidating excess inventory improves your bottom line and makes the company more profitable.
Consult a Professional Service
There are many benefits for shop owners who enlist the services of a professional liquidation service. Liquidation businesses are experts at pricing goods, making them an attractive alternative to completing the process independently. Contracting with these companies often saves time and money while avoiding some potential pitfalls of self-liquidation. Using liquidation services for your store allows someone else to take over the heavy lifting and streamlines the operation.
Freshen Up Displays
Regularly changing prominent displays will give your retail space a new look and feel, create excitement for regular customers, introduce them to something new, and increase your sales. Showcasing your most popular items grabs the attention of potential customers, and browsers bring them inside the store. For browsers to become customers, they have to see the things you have for sale.
Placing slow-moving inventory in several spots throughout the store can help to move the product. Knowing the places in your store that draw the most traffic is a big help in effectively executing this strategy. Pairing older merchandise with complimentary or related items can also help move sales.
The Power of Bundles and Giveaways
Bundling related products and offering them at a great price is an effective strategy for reducing carrying costs and liquidating old inventory. Grouping older and associated products give new life to old stock while protecting your initial investment. Giveaways help spread customer awareness of your store’s products and services and are an affordable way to advertise to new customers. Giveaways are also an excellent way to increase customer engagement and keep the excitement high.
A BOGO, or buy one, get one offer can work wonders for disposing of excess inventory. This multi-buy strategy works exceptionally well for retail businesses in the commodities or clothing fields where items typically sell in sets.
Consider Offering Items at a Discount
Offering a deep discount on slow movers can increase store traffic, move surplus inventory, and increase store loyalty by providing customers with a competitive price. Consumers are especially attracted to generous discounts on needed goods and supplies during times of record-breaking inflation levels and a lack of consumer confidence. During economic uncertainty, customers remain loyal to the business that offers excellent deals on quality products.
For brick and mortar retail locations, e-commerce offers a wealth of opportunities to liquidate surplus inventory. Online auction sites like eBay, Bidspotter, and GSAAuctions offer easy-to-use platforms for connecting sellers with interested buyers. Online retailer Amazon provides multiple ways for sellers to liquidate inventory to other businesses or direct to consumers.
Tax Deductible Donation
If liquidation appears impossible for some items, donating to a worthy cause may be the best option. Writing off surplus inventory requires an accurate record of the items’ value and any accrued decrease in value. Writing off the value of the donation will lower your tax liability when filing taxes for the business.