Surplus stock: How to make profit from excess stock
Author: John Coorey
Surplus stock is a common problem. Almost every retail company will be left with excess stock items at some point during their trading years. At first glance this can seem like a serious problem. Unsold items will affect your profit margins and put a strain on your bottom line.
Luckily, there is no need to worry. There are plenty of ways to make money from your surplus stock and you could even end up turning it into profit.
Use surplus stock for special promotions
One way of using surplus stock is to put it to use to promote your current product lines by running a special promotion. Customers love nothing more than getting a great deal on their purchases, so giving them incentives to spend more in your store is a great way to boost profits. Typically, retailers will inform customers that they will be awarded a free gift if they spend over a certain amount. Make the amount reasonable and only slightly more than your average sale. As a result you will see a huge spike in takings that will counter out any loss from excess stock.
Deals of this nature also tend to have a viral factor to them, meaning that customers will feel so pleased with their free goods that they are likely to tell their friends, attracting yet more business to your site. You can help this process along by doing a bit of self promotion and contacting bloggers or websites that are specifically aimed at bargain hunters. Let them know about your special offer. These blogs are always looking for the latest promotions to keep their audience in the know so they will be happy to hear from you.
Surplus stock often gets great press coverage
If your special offer is really exciting and offers customers really extraordinary value you could generate some great press coverage for your brand and attract some valuable word of mouth advertising. Be careful not to run too many of these promotions though. You could end up devaluing your product in customer’s minds.
A further alternative is to contact one of your competitors or a business you know to see if they would be interested in a stock swap of some kind. For example, if you are a shoe business you could contact a clothing company to see if they would like some of your excess stock in return for clothing or accessories. You can either sell these items to your existing customers or you can offer them as added value items when they purchase goods from you. Doing the promotion this way will avoid the risk of devaluing your product.
Use Google to find online auction websites
If you are interested in attempting to directly sell your excess stock it may be worth researching dedicated online auction websites. There are plenty of these websites around and they are often buyers willing to buy your surplus stock in large quantities, although be aware that you are unlikely to make a return on your original investment using these services. They are also public facing, so you also risk alienating your current customers if they see your surplus stock for sale at very low prices.
If none of these options appeal to you and you are still looking for a method of selling your excess stocks you could try contacting an experienced stock buyer like Coorey & Co. With years of experience of selling surplus stock we can research the market on your behalf and get you the best price possible.
Author: John Coorey
Watch our video that shows you how to sell your surplus stock