There are times during the year when you may face excess inventory, and actively managing it can help you anticipate how much cash flow your business will have available and what decisions you can make in the future.
Various reasons could lead your business to have excess inventory. Demand may fluctuate with economic conditions or market demand. This inventory takes up valuable space in your warehouse and shelves and can impact your bottom line.
Here are some strategies to alleviate excess inventory:
Creating product or service bundlescan increase sales and help sell a slow-moving product by associating it with a popular one.
Offering discounts can encourage undecided customers to try your products, providing an opportunity to sell inventory that would otherwise remain on the shelves. These discounts can be implemented regularly or strategically, such as during seasonal promotions.
For items with a shorter shelf life, such as flowers or food, offering them as rewards or incentives can not only move the stock but also build relationships with regular customers or attract new ones.
For customers who are hesitant to make a large purchase or actively manage their budget, buying now and paying later can be an attractive alternative, allowing them to split the payment into several installments and making the purchase more manageable.
Traditional strategies are effective in the face of the challenge of excess inventory, but incorporating innovative technologies makes a difference. Frogmi is a mobile web solution that helps retailers reduce their excess inventory. ShelfManager allows inventory to be checked, stockouts to be automatically reported, and low-rotation products to be identified and taken action on, reducing losses by up to 25%. It becomes a strategic ally that transforms inventory management into a more efficient and profitable task.
