Having excess inventory can be very stressful and, as a result, many business owners rush into a sale and make mistakes that have the potential to impact their brand significantly.
You can avoid these common mistakes by taking the time to ensure that you handle your overstocks correctly – with a little time and research you can sell your excess inventory for a profit without compromising the integrity of your business.
One of the most common mistakes that stock sellers make is setting a very low price for their product and allowing consumers to see this price, thereby tarnishing the reputation of the brand. Once your customers have seen a low price for your product, it is very hard to convince them to pay the standard price in future. Selling products on eBay or daily deal sites can lead to this problem. It is essential that you use a high level of caution when deciding how and where to sell your product at a reduced price. Discretion is key.
Daily deal sites also present a further potential problem for overstocks sellers in that they do not guarantee sale of your entire stock. Many people find that only small quantities of their stock will sell during the offer period, leaving the retailer left with quantities of product that have already been exposed to the market with a low value. You will find it very hard to sell this stock on at a reasonable price point.
If you decide to make your own approaches and find a single buyer for your excess inventory there are still areas where you need to be careful. Negotiating the best deal can be difficult and for those who are not experienced it is easy to miss out on good offers by turning them down. Often, the first offer you receive will be the best offer you get, but many overstock sellers turn it down, thinking that a better offer will come in soon. In my experience that isn’t the case. You should carefully consider all offers before you go back with a no. Selling overstocks is difficult and you shouldn’t expect several offers to choose between, so don’t rush to dismiss your first offer. Consider it carefully and compare it to the market research you have done to understand whether you are getting a fair price.
Finally, try to avoid spending too much time selling your overstocks. It’s easy to let the process of rescuing profit from your excess inventory occupy a large chunk of your time, but don’t forget that you still have your current stock and company to look after and market.
To avoid all of these pitfalls, you could also look at selling your excess inventory through a professional stock dealer.
