Lingering stock: markdown, bundle, or clear out?

  • , by Verpakkingdeals.nl
  • 6 min reading time
Prijstang, prijsstickers en acryl trapdisplay voor het afprijzen en opnieuw presenteren van winkelvoorraad

Inventory that doesn't sell costs space and working capital every month. In five steps, you can determine whether repackaging, bundling, discounting, or clearing out is the right answer—including the tools you need to do so.

In the back of the warehouse is a box you've moved three times without opening. In the store, there's a shelf that customers walk past without looking. Every salesperson knows it: stock that won't move. Often, it sits there until space is needed for autumn inventory, and then everything sells at once for a pittance – or not at all.

There's a smarter way. Unsold stock doesn't cost you money the moment you write it off, but it does every month it occupies space, attention, and working capital. End of August is a good time to address it: you still have eight to ten weeks before the November rush begins, and during that period, you can calmly test what works. Below is a five-step approach, with the tools you'll need.

Step 1: First determine why something isn't selling

Discounting is the reflex, but rarely the cause. Go through your slow-moving items and categorize them into one of four bins:

  • Not seen. The product is not at eye-level for anyone, is behind the counter, or is on page four of your website.
  • Not understood. Customers pick it up, turn it over, and put it back. There's a lack of explanation, a size, or a price.
  • Too expensive for what it is. Comparable products are next to it for half the price.
  • Simply bought incorrectly. Season over, theme out, color nobody wants.

Only for the latter two is a discount the right answer. For the first two, it's a waste of your margin: you're selling at a loss something that would have sold at full price with a different placement or a clear label.

Step 2: Re-present before discounting

The cheapest experiment is relocation. Put a slow-mover in the spot where your bestseller was for a week and see what happens. If it works, you know enough – it was a visibility problem.

Height helps more than surface area. On a flat counter, you only see the front row; on a tiered display, you see everything. A Transparent Acrylic Step Display with 6 Tiers (€34.95) or the slightly smaller Acrylic Step Display 6 Layers (€29.95) literally brings the back rows into view. For items with a loop or ring, hanging works better than stacking: a Metal Display Holder for Keychains (€17.95, black or white) turns a bin of loose items into an organized rack that people can browse through.

Also give every product you re-present a readable price. Slow-movers often stay put because the price is missing and no one dares to ask.

Step 3: Bundle instead of discounting

Two items that remain separate sometimes sell together. You then sacrifice margin on one product, not both, and you clear out stock twice as fast. Bundles work best when the combination is logical: something small with something large, a refill with a holder, two variants of the same item in one bag.

Practically, you need packaging that holds the bundle together and shows what's inside. Transparent grip bags (€2.00) are the cheapest way to combine two or three small items into a single sales unit. If you want to charge more, use a box: the Black Flat Gift Box with Window 12.5 x 8.5 x 1.5 cm (€1.99) displays the contents through the window, and the White Packaging Box with Magnetic Closure 9.5 x 9 x 10 cm (€5.00) turns three remnants into a gift that looks like a gift. For stall and checkout bundles, the Yellow Treat Box with Handle 15 x 8 x 8 cm (€2.99) is handy: it has a handle, so people carry it away without a bag.

Step 4: Only then discount — and do it right the first time

If relocating and bundling don't work, then it's time for pricing. Two practical rules: price in steps large enough to be noticeable (from €9.95 to €8.95 does nothing), and set an end date in your calendar for when the remaining items will be sold, regardless of price.

A pricing gun is the fastest tool here, especially if you're adjusting dozens of items at once. The MX-5500 Red Pricing Gun (€24.95) comes with 5,500 stickers and 2 ink rolls; the same gun is also available in yellow with 3 ink rolls (€24.95). If your sticker supply runs out, you can order white price stickers in packs of 5,000 (€9.95) or a refillable ink roll (€2.95).

Handy detail: with colored price stickers in 6 colors (€2.95 per 500 pieces) you can use a color code. Yellow, for example, is the first markdown, red is the last round. Your staff will then see at a glance what can still be reduced, and customers learn the system surprisingly quickly.

Pay attention to how you communicate the discount. The Netherlands Authority for Consumers and Markets (ACM) has guidelines on price display and price comparisons; the starting point is that for an announced price reduction, you base it on the lowest price you applied in a preceding period. If you want to use 'was/now' pricing, first read the current explanation on acm.nl – a strike-through price you never actually charged can be costly. Simple "now €5.00" without the old price avoids that discussion.

Step 5: What remains either leaves the store or goes neatly into storage

After the last round, you'll have a small amount remaining. Three destinations work: giving it away as an extra with an order, donating to an association or school, or storing it until next season. The latter only if the item genuinely sells well again next year – otherwise, you're just postponing the problem for a year.

Store what you keep flat and dry, and label what's inside. A moving box measuring 480 x 430 x 330 mm (50 liters) costs €3.50 and is large enough for an entire leftover batch. Seal it with tape from a pack of 6 rolls of 48 x 66 mm (€21.00) and write the contents and date on the side, not the top – you read stacked boxes from the side. When opening next year, a set of 8 utility knives (€4.95) will save you hassle with scissors.

If you sell remnants online, they travel cheapest flat: small items fit perfectly in a metallic bubble envelope of 22 x 17 cm (€0.90 each).

Put a date on it

The difference between clearing out and procrastinating is a date in your calendar. Choose three moments now: re-present in early October, bundle in mid-October, discount in early November. Then you'll start your busiest period with clean inventory and free shelf space, instead of with boxes you'll still have to move in December.

Everything you need for this can be found at Pricing Guns & Labels, Gift Packaging & Boxes, Storage and Packaging & Shipping. Unsure which size box or how many stickers you need for your assortment? Email your question to info@verpakkingdeals.nl – we'd be happy to help you calculate.

Tags

Leave a comment

Leave a comment


Meer uit onze blog

Login

Forgot your password?

Don't have an account yet?
Create account