A few days back I wrote a post about customers returning merchandise and how to get money or credits from vendors for the returned merchandise that can’t be resold.
In the past I also wrote a post about putting products or entire lines on sale in order to get rid of excess inventory.
But there’s another option for reducing your inventory that requires a simple phone call.
THE REAL WORLD RETAILING TAKEAWAY
Too often, vendors require ridiculous orders of too many skus and too many products, leaving small retailers to sit on non-moving product. And we’re so afraid of doing anything that might be construed as confrontational because we so desperately want to carry their line of products.
The truth of the matter is that they need us more than we need them. They are a vendor and as such, for them, it’s all about sales. Sure there are some prestige brands out there which are more concerned about where their products are sold than the number of products they’re selling or number of locations their products are being sold in. But that philosophy is changing — just look at the major brands that Costco and Target are selling. I’ve seen unbelievable brands in those stores and there’s one reason — the brands are sitting on too much inventory and are looking to get it off their books. And they’re willing to do just about anything to reduce their own inventory. You should do the same.
Are some skus selling in the product lines you have where you’re holding excess inventory? Then call the vendor and ask them to exchange the non-moving product for products that actually sell. If you’re sitting on a line that’s just not selling at all, call the vendor and ask them to take the product back. If they won’t, then tell them you’re going to put the line on sale. Sometimes that makes them change their mind. If it doesn’t, then go through the process of marking the products down. See the link above for information on how to do this.
The bottom line is that slow or non-moving merchandise, no matter how prestigious the brand is, is bad business. We’re in this game to make money. So swallow your pride and get rid of non-moving merchandise to greatly improve your company’s financial position.
What successes have you had reducing your inventory?