Well, slow-moving stocks lock down a lot of cash that can be used elsewhere. Let’s look at some ideas that will help you deal with stock pile and improve liquidity in the business.
- Offer Discounts
Organising a sale is the most common method by which you can clear your excess pile up of stocks. Offer interesting discounts on slow stocks as well as excess stocks. A 35-70% discount is a good idea to clear the stock. You may end up selling it at cost or lower, but these stocks will just become a dead weight if not sold right away! Clearance sales are used to flush out stocks that have been static for a period of 3-6 months. Flash sales are another great way to clear out stocks since the term “flash sales” plays on the psychology of the customers by inciting the fear of missing out. - Product Placement is vital in high traffic areas of your site
The placement of the products on your shelf is also a very important reason of why the products are not being sold. Not many customers crouch down or go search in the furthest corners of the store to get what they want. Placing the products that need to be sold right at the eye level, is a great way to sell them that too without offering a discount on the selling price. The visibility and accessibility of the old stock will greatly increase the sale of this stock, thus improving liquidity. - Use new keywords in the product title and description
If your stocks are sold on an online platform, you need to change the keywords you have used in the product’s title and description. The search engine optimization techniques need to be utilized and implemented as much as possible. The best case scenario would be that your product turns up on the first page of the Google search engine. So, investing in a professional SEO writer will go a long way and will also increase the sales significantly. - Bundling slow moving stocks with fast-moving stocks.
One of the best ways to increase the sale of stagnant stocks is to combine them with the highly desired and fast moving stocks. Attractive offers like, flash sales – bundling of products also plays at the psychology of the customers. Combining the slow moving and fast moving products and selling the bundle at a slightly lesser price is a very effective tactic when it comes to clearing away stagnant stock. This way, sale of both, fast moving as well as slow moving stocks is ensured and liquidity locked in stock is released. - Use low-cost items as incentives
Items that are of a low cost, but are still not sold, can be used as an invite to entice customers in and increase the sale of other products. This will ensure clearance of the low cost products at an even lower price and increase the sale of other products.
