Surplus stock: How to make profit from excess stock

Surplus stock is a common problem. Almost every retail company will be left with excess stock items at some point during their trading years. At first glance, this can seem like a serious problem. Unsold items will affect your profit margins and put a strain on your bottom line.

Luckily, there is no need to worry. There are plenty of ways to make money from your surplus stock, and you could even end up turning it into profit.

Use Surplus Stock for Special Promotions

One way of using surplus stock is to put it to use to promote your current product lines by running a special promotion. Customers love nothing more than getting a great deal on their purchases, so giving them incentives to spend more in your store is a great way to boost profits. Typically, retailers will inform customers that they will be awarded a free gift if they spend over a certain amount. Make the amount reasonable and only slightly more than your average sale. As a result, you will see a huge spike in takings that will counter out any loss from excess stock.

Deals of this nature also tend to have a viral factor to them, meaning that customers will feel so pleased with their free goods that they are likely to tell their friends, attracting yet more business to your site. You can help this process along by doing a bit of self-promotion and contacting bloggers or websites that are specifically aimed at bargain hunters. Let them know about your special offer. These blogs are always looking for the latest promotions to keep their audience in the know, so they will be happy to hear from you.

Surplus Stock Often Gets Great Press Coverage

If your special offer is really exciting and offers customers extraordinary value, you could generate some great press coverage for your brand and attract some valuable word-of-mouth advertising. Be careful not to run too many of these promotions, though. You could end up devaluing your product in customers’ minds.

Stock Swaps with Competitors

A further alternative is to contact one of your competitors or a business you know to see if they would be interested in a stock swap of some kind. For example, if you are a shoe business, you could contact a clothing company to see if they would like some of your excess stock in return for clothing or accessories. You can either sell these items to your existing customers or offer them as added value items when they purchase goods from you. Doing the promotion this way will avoid the risk of devaluing your product.

Using Google to Find Online Auction Websites

If you are interested in attempting to directly sell your excess stock, it may be worth researching dedicated online auction websites. There are plenty of these websites around, and there are often buyers willing to buy your surplus stock in large quantities. However, be aware that you are unlikely to make a return on your original investment using these services. They are also public-facing, so you risk alienating your current customers if they see your surplus stock for sale at very low prices.

Donating Surplus Stock

Donating your surplus stock to charity can be a win-win situation. Not only can you clear out your excess inventory, but you can also benefit from a tax deduction for the donated goods. Additionally, supporting a good cause can improve your brand image and build goodwill among your customers.

Repackage and Rebrand Surplus Stock

If the surplus stock consists of items that are no longer selling well, consider repackaging and rebranding them. A fresh look can make old products more appealing. You might also create new bundles or kits that combine the surplus items with bestsellers, offering customers a new and attractive deal.

Utilizing Flash Sales and Clearance Events

Organize flash sales or clearance events to quickly move surplus stock. Create a sense of urgency with limited-time offers and significant discounts. Promote these events through email marketing, social media, and your website to attract a large audience and maximize sales.

Partner with Discount Retailers

Partner with discount retailers who specialize in selling excess stock. Stores like TJ Maxx, Ross, and Marshalls often buy surplus stock from brands at reduced prices. While you might not get the full value, you can still recoup some of your investment and clear out your inventory.

Engage with Liquidation Specialists

If none of these options appeal to you and you are still looking for a method of selling your excess stock, you could try contacting an experienced stock buyer like Coorey & Co. With years of experience in selling surplus stock, they can research the market on your behalf and get you the best price possible. Liquidation specialists have the expertise and network to move large quantities of stock quickly and efficiently.

FAQs

What is surplus stock?

Surplus stock refers to excess inventory that a company has not sold and needs to clear out to make room for new products.

How can special promotions help in selling surplus stock?

Special promotions can attract customers by offering them great deals, such as free gifts with purchase. This can increase sales and help clear out excess inventory.

What are stock swaps, and how do they work?

Stock swaps involve exchanging your surplus stock with another company’s products. This can help both companies diversify their inventory and attract new customers without devaluing their own products.

Are online auction websites effective for selling surplus stock?

Yes, online auction websites can be effective, but you might not get the full value of your investment. These platforms can help move large quantities quickly but often at lower prices.

Can donating surplus stock benefit my business?

Yes, donating surplus stock to charity can provide tax benefits and improve your brand image, showing your company’s commitment to social responsibility.

What are the risks of running too many promotions?

Running too many promotions can devalue your product in customers’ minds, making it harder to sell at full price in the future. It’s important to balance promotions with maintaining your brand’s perceived value.

Conclusion

Turning surplus stock into profit requires creativity and strategic planning. By using special promotions, exploring stock swaps, leveraging online auctions, and partnering with professionals, you can effectively manage and profit from your excess inventory. Stay proactive and explore various methods to find the best solution for your business.