Excessive stock is definitely not a very ideal situation for retailers. That is to say, excessive stock takes up space that could otherwise be used for productive purposes. Moreover, it tightens the budget. Therefore it can keep retailers from investing in products they actually need. So it is essential for retailers that they pay attention to their stock management skills. To clarify, retailers must monitor their stock management methods because it is essential for them to make the right purchasing decision at the right time. Inventory accuracy enables retailers to have the exact knowledge about the stock. As a result, effective stock management can prevent the stock from going to waste.
However, excess inventory issues can emerge, because of certain factors that we cannot control. That is to say, there can be a sudden transition in trends. Further, demand forecasts can turn out to be inaccurate. Therefore retailers must not panic and follow the below-mentioned ways to get rid of the excessive stock.
Renew Market Strategies as an effective Stock Management Technique
There are times when retailers are not able to persuade customers to buy certain products. That is to say, there are some products that do not grab the attention of the customers. However, the issue might not be with the product itself. To clarify, the issue might be with the way retailers market and place their products. In the case of old and slow-moving inventory, retailers should try to refresh their marketing strategies. One significant way is to reposition the products in the store in a more attractive way. Retailers should make their products look new because customers do not buy such products that seem old and worn out. Further, retailers can re-photograph the items on their website. Moreover, they can write blogs and post the uses and benefits of the products that attract less customer attention.
Place the items in various areas of the store
A significant way to deal with old inventory is to place it in different areas of the store. That is to say, place the items in more than one area or shelf. To clarify, retailers can place those products amongst the products that encourage impulse buying. Moreover, these products can also be placed on a shelf that contains similar products than the slow-moving item. Retailers must focus on retail analytics. That is to say, they must be aware of the areas of the store that draw customer traffic. Therefore, retailers must use that information to plan where to place the old and surplus inventory so that it catches customers’ eyes.
Put Old Items on discount
In case the items do not get sold applying the above-mentioned tactics, try lowering their price. Further retailers can create a sale event to display these discounted products. Moreover, retailers can run flash sales and store-wide events to draw a large number of customers towards the store and products. These events can be promoted in such a way that the entire focus is shifted towards the event and not on the worn-out items and their low prices. In addition, if these sale events are promoted the right way, retailers can gain regular customers. Therefore, retailers can not only liquidate inventories by creating such events but also increase their customers.
The Bundling Technique; A Successful Stock Management Skill
Another important technique for retailers is to bundle their items. In other words, it is a very popular technique among retailers. In short, try to group together similar products. Moreover, the overall price of these items enjoined together should be slightly less than the individual price of each product. Consequently, this shall save retailers from suffering immense damage or loss. Bundling products from the excess inventory on a discounted price is the ideal situation to get rid of surplus inventory. Consequently, it shall increase the average order value. Retailers can bundle the surplus stock along with other complementary products in the store. Secondly, retailers can bundle the slow-moving products with their fast selling products.
Offer low-cost products as free gifts
Use low-cost products as giveaways and incentives. That is to say, these products can be given to the customers by offering it as a bribe. In other words, by giving a free gift to the customers, retailers can persuade the customers to sign up for their mail. Moreover, they can also persuade the customers to spend more because by doing so they will receive a free gift. As a result, customers get enticed by such offers and it helps retailers gain more profit than any loss. In addition, retailers should keep prominent signboards outside their store, to draw traffic and attention towards the store.
Boost the Staff’s Stock Management & Marketing Skills
There are times when it’s not just the inventories that need to be cleared. That is to say, at times the staff also needs a boost in their stock management and marketing skills. Therefore, retailers must keep an eye on the staff and monitor their selling behavior and approach towards products. As a result, retailers can encourage employees and re-train them. Similarly, retailers can also encourage the promotion of slow-moving products. Consequently, it will help draw customers’ focus on that specific item. Therefore, retailers should make their staff either wear or use the product in the store to generate customer interest.
Try to Exchange or Return Products
If the inventory stocks are immense, retailers should try to contact their vendors in such situations. There might be the option to either exchange the items with other in-demand products or with credit. In such cases, retailers should take care of the product being undamaged. However, retailers must ensure that they are not ruining their relationship with their vendor because they need to have good terms with them. Above all, if the retailers have a good relationship with their vendor, they have more chances to opt for this idea. Certainly, the vendors too do not want the products to go in waste; therefore, the vendor, as well as the retailer, tries to find a way out for the unsold items.
Invest in Stock Management Software
Retailers should invest in effective software that helps with stock management. That is to say, retailers must have software such as a Point of Sale system that manages inventories well. A good POS system makes stock management simple and easy for retailers. Moreover, the Point of Sale system enables retailers to keep track of inventories. Therefore, it saves retailers from being understock and overstock.
Conclusion
The best way to deal with the issue of surplus inventories is to not let inventories overstock in the first place. In other words, retailers must focus on their stock management techniques and re-evaluate them if needed. Therefore retailers must monitor customer responses on the items regularly. Secondly, retailers must order the merchandise keeping in mind the customer needs and choice. Therefore, retailers can save themselves from excess unused stock by engaging customers and observing their behavior.
“Determine what your customers need, and work backwards.”