Categories: Inventory Management
A surplus isn’t always a good thing.
When talking about budgets or financial aspects of your business, having more than you expected is a blessing. But, when you’re discussing products sitting in your warehouse, a surplus can be detrimental to your business.
Dead inventory takes up space in your warehouse, preventing you from stocking up on and selling products that are moving. The longer you wait to come up with a plan to reduce industrial inventory that is sitting in surplus, the more your revenue will be impacted.
There are several ways to reduce industrial inventory with little effort. But many of those solutions won’t help you turn a profit.
However, there are a few tactics you can follow that won’t force you to trash, donate, or return your industrial parts and products. Here are three ways to reduce industrial inventory and still receive a fair market price.
Given there’s nothing wrong with your product, such as being slightly off-spec, you might not be targeting the right audience.
Consider evaluating your marketing efforts. If you are using any form of SEO or paid digital advertising, look at your audience and see if anything needs to be adjusted. Consider an email newsletter or promotional campaign using one of the free marketing email providers available online to showcase your product and increase interest.
Finally, look at how your product is being highlighted in sales materials. Make sure you are calling out the right features and advantages that make this piece of inventory essential for customers.
Who doesn’t love a clearance sale?
Whether they are items of general interest or possible can be available for extra stocking by steady buyers, clearance sales can psychologically influence buyers to make a purchase.
You don’t have to deeply discount your surplus items. Start by marking them down by at little as 10% to see if that increases interest. You could also offer BOGO deals or include it as part of a package deal if someone purchases a larger, more expensive item.
If there’s still no interest, slowly increase the discount until it no longer makes financial sense to offer it for that price.
Inventory sharing is a great tactic to reduce your industrial surplus, but also to increase your revenue at the same time.
This strategy allows you to partner with other distributors across the globe to share inventories. So, if another company has a customer that needs what you have in surplus, you would fulfill that order and take a cut of the profit for providing your inventory. It’s a win-win-win for you, the other company, and the customer.
If you’re interested in reducing your industrial inventory, WarehouseTWO is your go-to solution. We help bring manufacturers and distributors together to create a virtual partnership to share inventories and help reduce surplus. The distributors and manufacturers that work with WarehouseTWO are members, so you know they are dedicated partners to help you reduce industrial inventory.
In addition, you’ll receive access to helpful tools from us which allow you to showcase your inventory to a large audience. Even if you decide inventory sharing isn’t the best option for your business, our insights and guidance will also assist you. It doesn’t matter how you decided to get rid of your surplus, as long as you’re doing something about it.
Become part of the WarehouseTWO team today to get the inventory help you need. All you have to do is click here.