If you’re looking at a build up of dead inventory, and feel a little overwhelmed by the enormity of it, here are a few ideas to help you get started turning it into cash.
Lot of companies struggle with dead inventory. Almost everywhere slowly, gradually, almost perceptively over time, the percentage of dead inventory grows. And as it is growing, the problem is thought to be modest, because the rate of growth appeared to be modest, so modest measures are taken to deal with it. Finally, when the sheer amount of inventory involved became inescapable, and the realization comes that the measures to deal with it aren’t close to being sufficient, the whole thing starts to feel overwhelming. So if you’re looking at a build up of dead inventory, and feel a little overwhelmed by the enormity of it, here are a few ideas to help you get started turning it into cash.
1. Sell It on www.ezytrader.in Start with the uploading the most desirable inventory, the most marketable, and the easiest to sell and turn into cash quickly & slowly put up all of it. You can also check for people looking to buy such items from leads on the website. We also help you by getting in touch with prospective companies or buyers in need of similar items.
2. Price it to move. Dead inventory is dead because it is not moving. It does little good to take the time and effort to segment it if you are not going to price it to move. Forget what you paid for it, and are carrying it your books for. It’s not relevant! Let me repeat this, because it’s an easy point to get hung up on: forget what you paid for it, it’s not relevant; that was then, this is now! What is relevant now is the price your buyers will pay for it, now! And like most everything else your buyers will tell you very quickly whether you have it priced right or not. When you are confronted with a build up of dead inventory, it’s critical to make a clear headed but realistic assessment of what it’s going to take to move it through.
3. Patience and Persistence : You didn’t get into this situation overnight, and you’re not going to get out of it overnight (Unless, of course, getting ten paise on the rupee from a liquidator makes sense to you, which it may in extreme cases). Build ups of dead inventory are frequently accompanied by a cash flow crunch, so the instinct to search for a quick fix can be strong. The solution rests with a persistent, sustained effort designed to deliver consistent incremental results. The first and most important step is establishing reasonable, attainable expectations for what can be accomplished in any given period of time.
4. Stop the bleeding. There are many possible causes for the continual buildup of dead inventory. If you can identify the cause and fix it, do so. If you haven’t been able to, however (which is likely or you would have fixed it when dead inventory was a much smaller problem), it’s critical to recognize that fact clearly and soberly, and seek out the professional expertise that can help you stop the bleeding.
5. Can you return it? You never know until you ask. And if you ask firmly, and structure your request as a win/win proposition, most vendors will be reluctant to respond with a flat out “No”. What do you have that your vendor might find valuable in return for their help? Your next purchase order perhaps. A test order on that new item or program your vendor has been after you to try. Maybe an increased share of your business. Open the dialogue, show your vendor the inventory you’re sitting on, they might have outlets that they can sell it to. Make clear that your request is a one-time thing, not a new standard operating procedure.
Dead inventory represents cash that is likely needed for other critical business purposes, such as paying vendors, reducing debt, fleshing out assortments or stock levels. The time to get started is now!!!