Inventory can be a good or bad thing. It’s good because it generates cash. It’s bad because too much of it can tie up your money and prevent you from paying dues on time. Small business owners need to manage their inventory well so that their cash flow is positive. However, there might be a cycle wherein you’ll have a difficult time moving inventory off your shelves.
Here’s how to sell slow-moving inventory and improve cash flow.
Sell Goods at a Discount
If items sit on your shelves too long, one way to move them out is to hold a sale. Discounts of up to 70% entice customers to buy your products. However, you should also time your sales right so that it remains effective and appealing to your target market. A flash sale creates a sense of urgency because of the limited timeframe you established. Seasonal sales are also an option, do this during the holidays and special occasions.
Some items on your shelves might have the wrong positioning, hence the slow sales. Consider repositioning these to sell them quickly. Update photos on your website, add new angles or include a video. This might attract new customers and convert them once they get more views of the product. You can also use a new set of keywords to reach the right people.
Donate them to Charities
An option to consider is to donate oversupply and slow-moving goods. Donations to charities benefit small businesses in many ways. This act connects you to your community, improves audience perception and provides you with tax benefits. It allows you to give to your neighborhood and do your part in helping it grow.
Put Products in a Bundle
A strategy to consider on how to sell slow-moving inventory is to bundle products. Offer two-for-one specials at an affordable rate to get customers to purchase. Combine fast-moving items with ones that have been in storage for months. These strategies allow you to move products quickly and convert them into cash.
Add Incentives for Larger Orders
Incentivize buying in bulk, this approach allows you to sell items. Customers will think they get better value for each dollar they spend when they order more of the same item. Consider dropping the price, giving a promotional item or bundling goods for bulk orders.
These are just a few of the ways you can sell slow-moving goods in storage. The faster you sell products the better your cash flow will be. If you need help with updating your accounting books, feel free to review our first-rate accounting for small business owners.