Excess stock: How to know when to take an offer on your overstocks
Author: John Coorey
Several inventory holders spend a long time considering whether or not to take an offer on their excess stock. I can answer that dilemma very easily – take the offer. In my experience, any subsequent offers will only be for a lower value. It’s always tempting to hold out for a better price on your overstocks, but in most cases, the first offer will be the best that you are going to get. In fact, I have never seen a case in which the price of excess stock has risen over time, especially if you are simply allowing the overstocks to sit dormant in a warehouse.
If you don’t take the first excess stock offer, you normally have to accept a lower price later for the overstocks
If you don’t take the first offer, I predict that you will end up accepting an even lower price at some point down the line for your overstocks.
As long as the first offer you receive is fair and reasonable, then you should certainly consider taking it. Retail managers are besieged by offers of low cost surplus stock, so competition is fierce, and from what I understand of this very particular marketplace, it’s only going to get fiercer. Remember to think about any additional costs you might incur in delivering the overstocks. Are there transport costs or handling costs for example? If there are, you will need to include these in your final negotiations.
Selling excess stock is tough
Many business owners will find that they do not get any offers at all on their surplus inventory, so refusing an offer in the hope that you will make more money in the long run can be a fool-hardy move.
There are several reasons why you might end up with surplus stock. Some of the more common cases I see are companies going into liquidation, poor ordering tactics, changes in fashion or over-manufacture. In most of these cases, the reason that the stock has become surplus is perfectly understandable and the goods themselves will still have a value. As long as the product is not damaged and is still useable, your excess stocks still have a value, even if it is not quite the same as the original market price.
It is unrealistic to expect to get the full original market price on any surplus inventory and overstocks
Once you have understood that concept the only remaining question is who you are going to sell the goods to and how much you are going to charge for the overstocks.
If you are having problems negotiating a deal on your excess stock, you can always try using a professional surplus stock seller like Correy & Co. We have over 21 years of experience in researching markets and handling negotiations and we offer free consultations for selling overstocks.