There is nothing easy about owning a business. This is especially evident when a business owner is faced with an excess of inventory. After all, unsold products are a liability.
While retailers may not be able to recoup their entire investment by liquidating their inventory, they can at least get a percentage back. However, a business owner who has decided to liquidate a portion or even all of their inventory must have an appropriate strategy. A proper strategy will help to ensure that you are able to make as much money as possible in the shortest amount of time.
When a business has a lot of merchandise to offload, many business owners make the decision to work with a reputable merchandise liquidator (visit site). Learn more about efficiently liquidating your inventory below.
RELATED ARTICLE: OVERPRODUCTION AND THE SUPPLY CHAIN: WHY MANAGEMENT MATTERS
Why Do Businesses Liquidate Inventory?
Businesses liquidate their inventory for a plethora of reasons. For example, a business could have a surplus of unsold inventory. Or it could have products on hand that customers have returned, and those products could be either refurbished or not refurbished.
Products that have reached the end of their life could be among the inventory that a business needs to offload. Additionally, a business owner might need to get rid of defective products. Unfortunately, a business could even be going out of business.
Regardless of the reason you might have for your liquidating inventory, you must have a strategic goal. For example, perhaps you need to recoup 50% of your initial investment. On the other hand, you might need to get rid of old inventory quickly to make room for newer products.
Keep in mind that the method you choose for liquidating your inventory should complement your goals. For example, it might not make sense to resell products on eBay if one of your goals is to move the products as quickly as possible.
Different Methods of Liquidating Inventory
Business owners can sell their liquidated products in a number of different ways. Using merchandise liquidators is the go-to method for many retailers. However, you might not get best financial return for your products from a liquidator. Listed below are some more effective methods of liquidating your inventory than working with a liquidation company.
Remarket Your Products
Let’s say you’ve been selling office supplies to small business owners. In this case, it might be more advantageous to remarket your inventory as back-to-school products for college students. Remarketing allows you to target a new demographic and sell your products for prices that are the same as or close to the original listing.
Offer Flash Sales
Flash sales can be effective for liquidating inventory. However, you should be careful about the types of discounts you give on your products. Depending on the frequency and timing of your flash sale, you could either enhance or hurt your brand.
Bundling products can be an excellent way of getting rid of excess inventory while still recouping the costs. Though many customers might not want to purchase a t-shirt by itself, they could be more interested in purchasing it in combination with matching pants and belt.
Working with a Reputable Merchandise Liquidator
Business owners usually make the decision to work with merchandise liquidators when they have a large amount of stagnant inventory. Generally speaking, they have also tried all other options. Some are closing their business and need to recoup as much of their initial investment in the quickest possible manner.
When you decide to work with a liquidator, be sure to choose one with a strong reputation for offering fair pricing. Also, be sure to receive multiple quotes for your merchandise before making your final determination.
Liquidating your inventory is not the end of the world. In fact, it can offer you a fast and practical manner of getting some of your investment back. But do try to have an effective strategy so that you get the best possible return.