When you have leftover products, you may wonder how to sell them. Selling excess inventory can be difficult because a large stock often means the demand for your product was lower than anticipated. There are ways to get rid of those extra products, though — two solutions are promotion and freebies.
How Retailers Approach Stock Challenges
When your goal is to sell excess inventory, you probably want to increase demand. Whether the excess items include clothing, tools or books, generating demand may seem like a challenge. Many retailers have faced stock difficulties head-on by turning their excess inventory into an advantage. For example, you can give away freebies such as blankets or bags with a purchase over a set amount.
Other companies choose to offer promotional discounts. From coupons to buy one, get one (BOGO) deals and lifestyle benefits, companies can increase their extra inventory sales by lowering costs based on a condition. Mattress companies, for example, may release 50% discounts and long-term warranties during the holidays or limited periods. Creating a small window of time encourages customers to buy while prices are low and makes discounts effective.
Solutions Retailers Use to Sell Excess Inventory
If you want to learn how to sell excess inventory fast while still earning a profit, your best bets are promotions and freebies. The key to both is knowing your target market.
When a customer quickly translates your discount or other promotion into monetary savings, they often act fast. Discount statistics show that promotions such as coupons can increase oxytocin levels in customers. High oxytocin levels enforce positive attitudes in your customers, which increases the likelihood of you making a sale. Sales become even easier when you tailor the deal to the target market.
For example, when mattress companies offer a discounted price during the holiday season, they may appeal to those who value the holiday. Whether it’s July Fourth, Christmas or Veteran’s Day, companies are more likely to process sales on those days for certain customers as opposed to random sale days.
Common promotions include:
- Limited-time free shipping.
- Teacher, student and military discounts.
When it comes to selling excess inventory such as clothing, attaching freebies to those products is an effective solution. Of course, the disadvantage of freebies is a monetary loss due to giving away the products for free. However, freebies do more than bring in customers for a limited amount of time. Freebies based on your target market’s wants and needs are highly valued and can increase customers’ chances of developing brand loyalty.
When choosing your freebies, select products that are:
- Helpful or useful.
Let Finale Inventory Help You Manage Your Excess Inventory
Freebies and promotions can promote your company’s reputation and increase brand loyalty. If you need to manage your excess inventory or your inventory in general, choose Finale Inventory. We offer a cloud-based inventory system that we can customize to your business. We know every inventory management application is unique, so our experienced domain experts partner with you to craft a solution that meets your specific business needs.