No matter what business you are in, there will always be situations when you are unable to sell certain items that you have brought earlier. Under such circumstances, the thing that needs to be done is to move them out.
It has been a common phenomenon among most retailers to still have goods that are much older than their selling life. It may even happen that you hold on to a product for such a long time that it starts to wear around the edges, fade and get out of style. In fact, you may have some of these products right now.
The seasonal items that you carry and the fashion items that you have bought have a shelf-life. You do not have to wait till the customers refrain and reject the items, to know that they have been outdated and must be moved out.
Here are some of the key points that have to be managed to move these products out. Just read on to know more.
Tell the Vendors When You Want to Receive the Products
Prior to placing the order try to analyse when the products are required to be in the store. Remember that it is foolish to receive goods much in advance and it is not so wise to go for late-season goods delivery either. That is why it is advisable to request for delivery dates. It is not that you will always get what you want. But if you don’t mention it then the suppliers will always get what they want.
Calculate Your Turnover
The number of times, an inventory is sold within a period, is called inventory turnover. The simplest way to deduce this is to divide the previous year’ total retail sale by your year-ending inventory at retail value. You must closely control your inventory for a great turnover. Device a stringent markdown program for clearing out the products that are past the sell dates and be very insistent about the delivery dates.
Know When to Take a Markdown
Remember that markdowns are not something that you should be afraid of. In fact, it is a smarter way of retailing. Try to understand that stores close when there is not enough cash-flow for covering the expenses and not when there is a mark-down. The first markdown is always the cheapest one, when taken on the right time. It is critical to clear out merchandise before the price-value relationship is destroyed. So as soon as the price starts to slow down you should mark down items.
The above are some the ways in which retailers can sell out those products that call for special considerations and are not selling out. The renowned retail stores like the Store 99 always have their markdown on time. This is the reason why they are so popular and are equally loved by both customers and vendors. If you follow the same you will also be able to attract more customers and generate more leads for your business with every passing day.