Get This Stuff Outta Here!

Author: Kelsey Thompson

Get This Stuff Outta Here!

What do you do with merchandise that you Just. Can't. Sell. ??

Do you put it on sale or do you hang on to it for next season, hoping that it will sell? There are many reasons we end up with slow moving merchandise, but there comes a time when we have to put our ego and best laid plans aside and get rid of dead stock.

According to thebalanesmb.com “Merchandise that has not been or cannot be sold is referred to as dead stock, which can create substantial financial burdens for retail businesses. Such items represent unrealized sales opportunities as well as expenses that cut into the retailer's profits.”

Dead stock takes up precious space in your store that could be used for other things - things that could be making you money.

The longer that stock sits there unsold, the longer it’s accounted for as a loss to your business, especially if you’re paying off the credit card you put it on.

So what to do with your dead stock? Of course, you can put it on sale. But if it’s in great condition and not 400 years old, try one of these alternatives to a straight huge discount.

1. Re-market It

Usually if a product has moved from “slow seller” category into “dead stock,” you’ve merchandised it to death with no results. But let’s say you are confident in a product and it’s not moving because your customers just don’t realize how great it is! Try marketing it a different way. Double or triple expose it by making multiple displays with the same product throughout your store. Change out the price tags, make an interactive display with samples if possible, or post a sign about the uses or benefits of the product. You can pair this with a video on your social media pages or YouTube. Take new photos for your website and create a blog post to share with your email list. Treat the product like it’s the hottest new thing in the store and get some buzz going about it.

This is more time spent on this product that’s moved into “dead stock” zone - so do this if you are confident in selling it at full price this way. Don’t dump a lot of time into re-marketing something you’re going to have to discount in a few weeks anyway.

2. Re-imagine It

Florists are “make it work” magicians, right? Brainstorm with your team a way to alter the product - either the way it’s used or its actual physical form. Can you turn a basket into a shelf and do a “how to style this look” video on social media? Maybe anyone that purchases the basket shelf that week gets a small discount on decorative items to use with it. Can you take apart a silk swag and turn components of it into a centerpiece or use it in daily orders? I’ve even taken dead stock wall signs and painted over them to use as blank wreath backers. Sell them as customizable! Your customers can add their last initial or house numbers to the center of the wreath, and you’ve sold an old sign and a wreath.

3. Bundle It

Pair one or two "dead" item (at a huge discount) with 2 popular items or a gift card or service, and sell the bundle at a small discount. Your customer is getting a deal and you're getting that old crap out. We have set up a "hot deals" area of the store for this, or done a Facebook auction (or reverse auction which is fun). If you are curious about a reverse auction I tell all in the 6th episode of The Retail Florist podcast here.

In the same vein as bundling is offering that specific item as a BOGO. Maybe the price is a bit high for most buyers … but if your customer gets two for the price of one? Their brain perks up. The psychology of BOGO is more appealing than 50% off, because it makes the customer feel like a smart buyer; like they earned that second item.

4. Donate It

We pre-make gift bags for donation requests at set value amounts ($35, $60, etc). I have a form for requesters to fill out but then we can just pass them the bag of stuff. Easy peasy.

Another option is to contact local charities or fundraising groups and let them know you would like to donate a box of items for them to use in an auction or as a door prize. You know how people buy pallets of Amazon returns and then piece them out and sell the items individually?? You are Amazon in this example. Box up your unwanted dead items, write it off as a donation, and let the grateful group decide how they can best make money from it.

5. Live Sale

Make an event on Facebook so your customer can share it, and post a sneak peak of some of the sale items ahead of time. I like to do a product mix of new merchandise and dead stock - including plants, gift items, home decor and a few fresh bouquets. That way there’s something for everyone. Your dead stock items can be sprinkled throughout as super sale items - let people know that you’ll have “X” number of surprise super sale items during the course of the live sale that will be up to 70% off. It will keep buyers engaged.

We've done a challenge where a designer made an arrangement with a "surprise" item (something we wanted to get rid of) live as well, either as a separate promo or while the live sale is happening. Auction the goofy bouquet off with half going to charity. Which leads me to the next idea…

6. Raise Money

Same concept - in store and/or online silent auction with mostly dead stock and some great items mixed in. You could donate a percentage of all proceeds to a charity. Poll your social media followers to determine the local charity you choose. Use the "charity choosing" to start advertising for it and ask the charity to share on their page. Then leave the auction up for at least a week. You'll make back partial cost and it's great PR.

7. Move It Off Your Shelves

Consider a local or regional consignment store if you are just done with it ;P

You could also try online re-sellers like Ebay or Mercari. Just keep in mind that you’ll be spending money on labor to list the items, and account for shipping costs and transaction fees. I would only recommend this for high value items that you know there is a market for - it may just not be your local market!

Bottom line: If dead stock is taking up space - and causing you mental stress - just get rid of it. Heck, mark it down to a dollar if you have to. Just try to limit your huge discount sales during the year and keep them short and sweet. This creates a sense of it being unusual and urgent. If you give one of these other ideas a try, or if you have a great dead stock promotion you’ve done, I’d love to hear it!

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