The problem of excess stock attains a gargantuan shape if it is not taken care of in timely manner. Stock maintenance cost increases, storage area becomes a sort of cost centre and lots of underlying cost heads spring up eating away the bottom line. Thus, the production managers bring thoughts into action and come up with varieties of ways to get the stock liquidated.
One of the most common ways of liquidating the excess stock is use of flea markets. The buyers come in anticipation of finding great deals and very large discount rates. The production house needs to shell out very meager amount to set up a booth and then attract customers to buy their stock at incredibly low price. Some small-scale business owners make use of garage space also to sell excess stock, but only after getting requisite approvals from residential associations.
Contacting wholesalers is another easy way of liquidating excess stock. If you go through retail route, you may not get so many buyers showing interest in your merchandise, but you can approach wholesalers and make an irresistible offer so that they agree to how to improve cash flow in small business http://www.bartercard.com.au/improvecashflow.html of yours through their channels.
A newer way of liquidating the excess stock is through putting the merchandise in a different market. This trick does serve the purpose if the product is of global appeal. There are certain products in the West which get introduced very late in the Asian and other Eastern markets. If any company in the West performs a global survey and finds out the curiosity level among the users in other markets, they can switch the market and get the interested buyers there.
In addition to switching to the other market, you may also consider changing the shelf arrangements for displaying the stock. If the stock is re-presented in an enticing manner in a far off market, it may find buyers easily. So, this allows the seller to at least give the thought of selling the product at fair price a last try. If it does not work, clearance option is anyway there to bail him out of loss situation.
You can go creative by generating an event out of excess stock. You may induce an urgent rush in the minds of the consumers regarding the availability of stock at the same quality or price pulling them towards the event in large numbers. Proper pre-event marketing is must to create the buzz and make cash out of the situation turning into your favor.
Combination offers are another way of selling excess stock. Excess stock can be clubbed with a high selling item to create a beautiful combination which no one would be able to resist. This translates into clearing of stock as well as an increase in sale.