If you’ve been running your small business for a few years now, you probably have a collection of excess inventory that is taking up space in your backroom rather than turning into cash for your business accounts. Many of these small businesses are using Square Register to track all of their sales, so seeing what you have lying around is usually as simple as a few clicks. Your excess inventory can be anything from Christmas items that didn’t sell to last year’s styles that aren’t going to fly off the shelves without a little help, but there is always something you can do to liquidate that old merchandise into cash. Here are some tips to help you turn that excess inventory into cash and get some extra space in your storage room and on your shelves for items that will sell much faster.
Using Analytics to Push Inventory
Before I get into what you can do with your excess inventory, there are a few ways you can avoid this problem in the future. By utilizing the simple yet robust tools that are included with the Square Register inventory platform by default, you can track what sells and what doesn’t so you can control your product ordering. If your seasonal clothing doesn’t move that well, you can see it in your sales data on the Square website. You can also predict what items will sell very well so you can make sure to have plenty on hand. Using analytics to push inventory and know what not to order will help you avoid having excess inventory problems in the future.
Have a Sale
Getting rid of your unwanted backlog of products can sometimes be as simple as having a sale. Though most of your customers will come in looking for something else, having a large sticker with a low price can make many items fly off the shelf. Sometimes you need to be realistic about the pricing and hope to essentially break even, but clearing out that old product at cost is actually a win because the real estate it takes up on your shelving is actually costing you money since it can’t be replaced by a money-making item. And don’t forget to advertise your sale; get your best people out on the street holding sparklers and signs to draw in as many people as humanly possible!
Start Selling Online
Selling online is a great way to expose your overstocked items to a larger group of buyers. Instead of only offering items to a person who is standing in your store, you can sell to the millions of people who are looking online for exactly what you have. You can use a popular website like eBay or build your own online store, either way your chances are much better of clearing out those old items if you are selling to a larger group of people.
When all else fails (or you just want to be a good person), you can donate those unwanted inventory items to charity. They can either give them to families in need or hold an auction to raise money. People often bid on items simply because the money is going to a good cause, so even hard to sell items can go for a good price at a charity auction. Best of all, you can use the donation as a write-off against your income on your business taxes and the charity is getting a valuable donation. It is truly a win-win for both parties involved.