Do you ever find that you have old stock in your convenience store that you just can’t sell? Sometimes you don’t know what to do, the prices are already small, the products may look tattered and you need to fill the space with new stock that will sell faster. What can you do? We’ve put together our top 5 tips on how to manage old stock in your convenience store.
Donating your stock to a local charity or organisation such as a theatre group means that you can get rid of stock quickly. You should also be able to build on marketing your convenience store by having a free ad in a programme or leaflet. Make sure that that the merchandise has a fairly decent shelf life and that the quality is good. Obviously there’s no immediate profit to be made here but you will be clearing your shelves to make way for new better selling products whilst raising your profile.
- Stabilise inventory
This option relies on intuition, some planning and the right demographics. Let’s start with an example. You have too many carbonated drinks by unknown brands and they just won’t sell. One option would be to remove all well known brands of carbonated cola, orange and lemonade from your shelves and only display the unknown brands. Your customers will have no other choice than to buy the remaining stock – they do need to be indifferent to branding though! This might take a little bit of planning as you may want to carry out some risk management using your POS system to see how well these products sell throughout the year, there may be periods when they are more profitable than others – you don’t want to jeopardise making no profit at all.
- Gift Promotion
Try wrapping up the stock and giving customers a free gift every time they spend £10 or whatever amount you choose. This would be particularly successful leading up to Christmas and builds customer loyalty. Again, you won’t be making a profit on the old stock but customers may be encouraged to buy more if there is an added incentive.
Try putting all the products together in a ‘bin’ and offer the products at 5 for £5 or whatever price you prefer. They should get snapped up fairly quickly.
All of the above are great solutions which can be implemented quickly with little or no planning. However, it’s important to have a strategy in place so that you can forecast and plan for this situation. Using your EPOS system and accounting information (such as supplied by cloud accounting system CounterBooks) you should be able to identify patterns in stock sales and forecast when you may have too much old stock. You can then have a planned lifecycle, implementing offers such as discount sales or buy one get one free at the end of every quarter or whenever you have planned.