By Kamna Hazrati
Ease of doing business for MSMEs: Every year, small enterprises throughout the globe stockpile their racks, anticipating that they’ve bought plenty to last through the festive season. Then the festivities are over, and they’re left with stacks of unsold goods. Unsold inventory is especially unpleasant since each item that does not sell tends to cost you money in the form of shelf space as well as the potential cost of tying up your cash flow. It’s doubtful that you’ll be able to forecast how much inventory to keep through to the final order in advance. So, what should you do with excess festive inventory? Here are the top 5 ideas to turn your dead inventory into deals.
Plan unique activities and giveaways
Your products do not have to sell to add to your company’s top line but can leave a greater impact if done strategically. Utilize your unsold inventory as a promotional giveaway item, or send it with you to pop-up gatherings to increase its—and your—brand value. When someone enjoys your offering on one of these occasions, you may tell them there’s more where that came from. And since they have been sent complimentary they leave a greater impact. Remember the last time you went out shopping, and got a free gift from a store?
Once it’s officially “unsold,” start discounting
Reduce your remaining stock by 10 per cent, 20 per cent, and so on. Subsidized inventory is an effective strategy to attract budget buyers and maintain the number of visitors. However, the golden rule is, not to reduce so drastically that customers realize all they have to do is wait for you to put your items on sale for 95% off. Determine your item’s price cap- the very lowest amount you’ll sell it for—and markdown up to that point.
Get creative with your marketing strategy.
A flat discount is usually the preferred tactic, but a strategic marketing plan and the use of social commerce can help move inventory and also create brand recognition, which would benefit the business year-round. Discounts and festive sales are excellent methods of inviting customers to try your product. Once they do, they can become repeat customers and, therefore increase the lifetime value of the customer.
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Selling via virtual platforms
If a product does not trade well on your website, it may find a more wide audience on a third-party platform. Take the initiative to promote and advertise these things intelligently by employing marketing strategies through bespoke channels apt for your business.
Take caution with this move: You don’t want to get into the habit of offering an item at full retail price, and then offering it low-priced on a third-party site. The damage to your business will be insufficient to compensate for your expenditures. Use this selectively with things that appeal to a certain, specific audience.
Convert a Cancellation into an Opportunity
Returns may be excruciatingly uncomfortable, not to mention expensive. While you don’t want to promote returns, you may use them to establish a connection with a consumer you would not have had previously.
Also read: Festive season marketing strategies for small businesses that don’t cost too much
Make your return policy as easy to understand as practicable, and you’ll be more likely to get a sale in the initial place. And you can be sure that a customer who finds interacting with you difficult will not return for another transaction very shortly.
Summary
Excessive inventory may become a monetary and logistical issue. Nevertheless, businesses can put tactics and solutions in place to reduce excess inventory and address inventory management challenges. Retailers can still regain some of their lost cash in several respects. Businesses that employ robust inventory management strategies to track inventory availability and demand may simply prevent excess stock. So, plan your purchase accordingly and wisely to save yourself from the crunch later on.
Kamna Hazrati is Business Consultant & Founder at KH Advisory. Views expressed are the author’s own.
