Dead stock buyers: sell your old and slow-moving stock

Dead stock is the stock that hasn't sold and isn't going to sell where it is. It sits on the shelf, it gets moved around at every stocktake, and everyone in the business has stopped looking at it. We've been buying stock like this for over 30 years. Most of it has a buyer somewhere. It just isn't your usual customer.

What is dead stock?

Dead stock is inventory that has stopped selling through your normal channels and has little realistic chance of starting again. People call it old stock, slow-moving stock, obsolete stock or redundant stock. The names overlap, but they describe stages of the same problem.

Slow-moving stock becomes dead stock quietly. The earlier you act, the more it's worth.

Why does a business end up with dead stock?

Usually for reasons outside anyone's control. Cancelled orders, a buyer who changed their mind, a retailer that deleted the line, a minimum order quantity that was too big, a forecast that didn't come off, a packaging change, or a trend that moved on. As John puts it, "In my thirty years of experience, I can safely say that I have seen everything (at least twice!)"

None of that means the stock is bad. It means it's in the wrong place.

What does dead stock actually cost you?

More than most owners think, because the costs are spread across different lines in the accounts. In general terms, holding dead stock costs you:

• Storage. Warehouse space, racking and pallet fees, whether you rent space or use your own. Space taken up by dead stock is space you can't use for stock that sells.
• Handling. Every stocktake counts it. Every reshuffle moves it. Someone's time goes into it.
• Insurance. You're insuring stock that isn't earning anything.
• Tied-up capital. The money you paid for it is sitting on a pallet. It can't fund new stock, pay suppliers or reduce debt.
• Deterioration. Packaging fades, dates run down, models get superseded. Stock rarely becomes more valuable with age.
• Write-downs. Accounting standards generally expect stock to be carried at no more than what it can realistically be sold for. Dead stock often has to be written down, and the longer you wait, the bigger the write-down tends to be. Your accountant can tell you how this applies to you; our guide on writing off obsolete stock covers the general principles.

Add those up and the real cost of holding on is usually higher than the discount you'd take by selling.

How do you sell dead stock?

You have several options, and the right one depends on the quantity, the product and how much you care about where it ends up.

For a handful of items, eBay or a clearance table may be the better choice. For a pallet or more, or for stock carrying your brand, selling the whole parcel to one buyer is usually faster and safer. Our article on why we don't recommend auction sites for excess stock explains the trade-offs in more detail.

How does selling dead stock to us work?

It's simple, and you stay in control of where the stock goes.

1. Send us the details. A stock list spreadsheet (SKU, description, quantity, cost or RRP if you're happy to share, and best-before dates for anything dated), photos and the location.
2. We survey the market. John discreetly checks with buyers to find out what the stock is actually worth.
3. We make an offer. In most cases we offer to buy the whole parcel. If buying it all isn't possible, John gives you his best advice on how to sell it.
4. We agree collection and payment. Collection is flexible and agreed per parcel. We can arrange it, or you can deliver. We pay promptly, as per our agreed terms.

We buy the stock ourselves and resell it through our own contacts. We don't charge you a fee to broker or advise.

Who buys dead stock from us?

Our buyers include major retailers, discount chains, overseas buyers, charities, wholesalers and distributors. Each has different motivations. A discount chain wants a price that works for its shoppers. An overseas buyer may want volume in a market where your brand isn't sold at all. A wholesaler wants mixed stock it can break up.

That spread is why stock that's dead for you can be perfectly saleable for someone else. It's also how we keep stock out of the channels you want to protect. Our guide to who buys excess stock in Australia goes through each type of buyer.

What do we promise when we buy your stock?

Four things, which we've stuck to for over 30 years:

1. "We strictly follow your guidelines in relation to pricing and distribution locations."
2. "We send payment promptly, as per our agreed terms."
3. "We place a priority focus on clearing your stock."
4. "We speedily and discreetly convert your stock into cash at the highest possible price, without damaging your market position."

What kinds of dead stock have we bought?

Almost every category. Food, general merchandise, licensed products, personal care, clothing, shoes, toys, electrical products, paint, adhesive tapes, cleaning products, cosmetics, batteries, stationery and plenty more. A recent example is this obsolete stationery parcel.

Some of it has something wrong with it: old packaging, a labelling issue, short dates, a fault. We're transparent about that with our buyers, and we can often still find a home for it.

How much is dead stock worth?

It's worth what a buyer will pay for it today, which is rarely what you paid. Brand, condition, quantity, dates and where the stock can be sold all matter. That's why John surveys the market before making an offer rather than quoting a formula. Our guide on how much your stock is worth explains what moves the price.

If you've got stock that isn't moving, send us the details. Anything is possible!