We were helping a retailer turn their business around last year and one of the first things we looked at was dead stock. In their type of business, anything that has not sold for 6 months or more is dead. They had $32,000 worth of dead stock.
Their initial reaction was common, disbelief. We worked out a plan and soon enough quit that stock and used the freed cash to purchase more of what was selling.
The first way to resolve a dead stock issue is to understand the cost. Good POS software reports on it easily. Our Tower Systems POS software does. Our software also offers tools for m opting the stock, and tracking that to see the value of this.
We’re not your usual POS software company. Sure, we show how to use the software. But, we also offer advice from a business management perspective – how to use the software to drive value for the business and its owners. We do this from the position of being retailers ourselves. We can speak to our experiences in our shops.
That’s what we do in this dead stock situation. Plus, we draw on decades of practical help to other retailers.
Our advice is to look at dead stock / the age of stock every 3 months. You soon learn the value of buying based on data evidence in the business and being cautious when exploring new product lines.
Your software can guide you to make decisions more likely to work, and less likely to result in dead stock.
We have been working with retailers for many years and continue to be surprised at the disinterest of many retailers in the extent and cost of dead stock in their businesses.
When we bought a retail business a few years back we had written into the contract a cascading discounts for existing stock based on its age beyond 6 months. In that business, more than half the stock had been there for 6 months.
Dead stock costs the business today, and when you come to sell.
In our POS software and thanks to our personal training we help retailers reduce the cost of dead stock in their businesses.
Find out more:
1300 662 957