Regardless of industry or sector, when you see an opportunity to expand and increase your bottom line with new stock or products sometimes it just doesn’t work out the way you thought it would. The industry may have changed, products might be faulty, a new competitive model just out sells the line you are stocking, etc. This can sometimes leave you with a stockpile of obsolete inventory now sitting idle in a warehouse. You need to determine if your business is mismanaging the obsolete inventory and if so, determine what to do with it.
Are You Avoiding Your Obsolete Inventory?
There are aspects in the day to day operations of business we all would rather avoid, yet putting it off can actually create a bigger financial headache. Avoiding your obsolete inventory fails to take care of the problem, and over time this avoidance results in a growing section of your warehouse devoted to excess stock which is costing you money. If your warehouse is situated in an expensive area this can actually be costing the business a fortune in cost per square metre of space being taken up by something that isn’t selling and making a return on investment.
Not Sure What to Do
A common problem with many companies is they are not sure what to do with the obsolete inventory. Tossing excess stock into a dumpster is often not an option (and likely results in hefty violation fines), yet handling the removal on your own is difficult as well. It is why a service provider such as Industrial Clearance can prove so valuable. Moving obsolete stock just got a whole lot easier.
End of the Month Discount
When over ordering stock, you may decide to begin end of month discounts. The problem with setting an end of the month discount standard is customers will begin to postpone their purchases until the end of the month. This in turn causes a greater excess of goods and more volume going at the end of the month, costing you money. While the occasional sale is fine, constantly relying on monthly discounts can prove disastrous in the end.
Excess and obsolete inventory takes up valuable space in your warehouse. Eventually, it may end up costing your business more to have it sit around than to have it removed. However, instead of attempting to handle the removal process on your own, check out how you can sell your stock through Industrial Clearance. They specialise in the sale of obsolete inventory, freeing up space and giving you back valuable warehouse space.