Dead stock has no value in any retail business. Indeed, it has a cost as it takes up space and needs labour to keep it clean at least. It sits there, occupying this space, not being bought, paging with each day.
What constitutes dead stock will vary by type of retail business. In some, stock has an expiry date, making that the drop-dead date for the stock. In other businesses, stock is dead when a new version or new release of an item is out.
For the purpose of the advice we provide here, our definition of dead stock is that which has not sold whatsoever in six months or more. The is, you have a quantity of an item on hand and have not sold any of then in six months.
Knowing what stock is dead in your small business shop is critical. It is the start, the beginning, of resolving the issue of dead stock.
Our Tower Systems POS software helps local small business retailers easily identify dead stock. You can decide what constitutes dead stock in your business and list it, bring it up on the screens for attention.
Start there, start with your definition. next, use your software to identify what’s dead. Once you have this information you need to jump, what for some, is a hurdle … you need to decide to quit that stock.
Some retailers are adamant that they need to make a profit on everything they sell. These retailers don’t like discounting to quit dead stock. The thing is, the stock on the shelf is worthless until someone pays you something for it.
In our pragmatic view, getting something, anything just about, is for stock that is dead is better than waiting longer and getting nothing for that same dead stock.
Quitting dead stock is best considered a freeing cash move. That’s what we say getting anything at all is better than the stock sitting on the shelves and not moving.
Use your POS software to identify the dead stock and then jump that hurdle and quit it, quickly, freeing the space and allowing you to focus on what’s next.
In our Tower Systems POS software, the Stock manager tool is best for identifying stock that is dead. You can easily see when you last arrived stock, what’s on hand and when it last sold. In seconds you can have a hit list of stock that could benefit from action. Stock manager operates in a way that any retailer could use it. It’s not complex, not daunting. We have a terrific video showing how to do this with Stock manager. We also have a wonderful advice sheet.
Retail businesses exist to support those who rely on them for income. Dead stock is not helping with this.
Unfortunately, too many small business retailers do not actively engage with the opportunity of dead stock.
We are grateful to serve more than 3,000 local and independent small business retailers here at Tower Systems. Our POS software community is diverse and very much appreciated by us for their support and feedback.
The advice we share here comes from our years of engagement with them and our own experience as engaged retailers ourselves.