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Old 9th June 2013, 08:51 AM   #1
AngelBiz
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Default How To Sell Excess Inventory Without Marking Down

Every business finds a need to get rid of excess inventory quickly at some point. You may end up with excess inventory for number of reasons. Clothing retailers need to sell remaining winter jackets at the end of winter. You may misjudge consumer preference and buy too much of pink trousers that are no longer trendy. You might even find a need to free up some cash and one way to do it is to sell excess inventory.

The standard practice to sell this excess inventory quickly is to arrange a sale by marking down items anywhere from 20 to 80 percent on a progressive basis. Sale can be effective at moving the merchandise quickly in most cases. It helps them get rid of excess inventory that is tying up cash and giving them back some money for it. The sale gets the attention of customers who are looking for bargains.

Read more - http://www.smallbizviewpoints.com/20...rking-it-down/

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Old 10th June 2013, 02:05 PM   #2
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What are the usual rules-of-thumb where a business may decide to liquidate at a loss vs to keep the inventory?

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Old 10th June 2013, 09:40 PM   #3
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What are the usual rules-of-thumb where a business may decide to liquidate at a loss vs to keep the inventory?
I have not come across rules of thumb, but the factors you want to look at when deciding whether to liquidate or keep the inventory is how long have had it, how is the demand, how much you can get for it, how fast you can sell it, whether it is perishable or not, etc. At the end of the day it is dependent on individual situation.

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Old 19th June 2013, 07:39 AM   #4
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What are the usual rules-of-thumb where a business may decide to liquidate at a loss vs to keep the inventory?
Rule of thumb is to start liquidating after three months and then progressively until gone. Just an aside I read somewhere that if inventory is there longer than a year there's a 95% chance it will never sell. Not sure how true it is though.

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Old 20th June 2013, 06:46 AM   #5
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Good thing I found this thread, I really need this info for my project..Thanks for the ideas guys..

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Old 20th June 2013, 11:09 AM   #6
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Rule of thumb is to start liquidating after three months and then progressively until gone. Just an aside I read somewhere that if inventory is there longer than a year there's a 95% chance it will never sell. Not sure how true it is though.

Lisa
OK. What are the usual rules of thumb regarding pricing when doing a liquidation? For example, when do you get to the point where you have to start selling at a loss?

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Old 21st June 2013, 10:46 AM   #7
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OK. What are the usual rules of thumb regarding pricing when doing a liquidation? For example, when do you get to the point where you have to start selling at a loss?
I would start at lower discount and gradually increase it with time, similar to what large department stores do. Not sure I would ever sell it at a loss. It's better to donate it and take tax write off than selling it at a loss.

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