Running into liquidity issues is not a position any company wants to be in, however, if it does happen getting out of it promptly is crucial to the long-term survival of your business. Finding ways to get value out of old stock could be a great way to free up capital that can help you out of financial difficulty. Here are some of the different ways you can process unsold stock to try and increase your financial strength as a business.
Reposition old stock and double or triple expose it as a means of selling
Exposing stock in a retail sense is when goods are present in different locations throughout a store. This can be a good way to get some more exposure for goods that are not selling and help you increase the cash flow in your stores. Keep in mind that this should be done with the intelligence of some basic retail analytics to work out what the best positioning strategy is.
Find a way to barter old stock wit supplier and partner companies
Cutting deals with suppliers can be a good way for your business to get hands-on some much-needed cash during difficult times. Try and look at suppliers who could find a use for other parts of your business such as distribution or marketing. They could be willing to pay for these services by taking back stock from you at the market rate. Make sure both parties understand the margins and the agreement in this type of barter trade.
Include strategic discounts to try and free up cash
Discounting items and closing sales have been shown to drive increased footfall and help businesses shift some unsold stock. This should be done with a stratified approach to try and get as much value out of your old stock as you can. Discounts can also be used in your marketing strategy through email-newsletters and social media advertising.
Bundle items together with promotional offers
Another way you can improve the cash flow of your business is by bundling items together in your stores. This can be done as a way of pairing up more popular items with stock that you may have been sitting on for a while. Try to pick items that work well as one product and complement each other, this will help them sell.
Find a way to connect with companies that can help you
The methods listed above will help you get rid of unwanted stock and free up some cash that could help with the survival of your company. The bartering method shown is interesting as it can come in a variety of different forms, taking measures to streamline your operations may not give you instant access to cash but it can help you save money over a sustained period.
Contra Dealer looks to connect businesses that are looking to save money through increased cooperation. If you think bartering could work with your business create your listing here.