How to Liquidate Surplus Inventory: 7 Tips to Dissolve Excess Stock
The Holidays Present the Best opportunities for Pet Retail Franchises to Boost Sales and Increase Revenue: What About Items That Never Left the Shelf?
Knowing the ideal stock inventory for the holidays is the safest bet, but surpluses occur despite great efforts in research and marketing for pet retail franchises.
Things happen that are out of unit owners’ control and a contingency plan is always a good idea. Maybe a shop’s demand forecast did not account for a sudden consumer trend that influenced holiday shopping and led to excess inventory.
This makes observing sale rates very important.
When pet retail franchises can’t sell products they take up retail space on shelves where items that would be selling would normally be, tie up capital, and keeps shop owners from further investments to expand business.
Observing the rates of product sales helps shop owners prepare more strategic and impactful ordering of inventory and make wiser marketing decisions. Being cognizant of your inventory also prevents shop owners from overstocking.
This article aims to help guide pet retail franchise owners on how to prevent overstocking, and what to do in the event of a surplus.
The Three Rs: Refresh, Re-Merchandise, and Remarket
Merchandising is key.
Splash and Dash Groomerie & Boutique has a specific method of product placement within franchisees’ store locations. The store design is optimal for selling and organizing, but depending upon territory minor adjustments may be useful.
When items are not selling it may not be because of lack of consumer interest. The issue might be the marketing or positioning of the product on the retail floor. Many retail consultants advise a constant shifting of inventory to maintain a unique and engaging experience for customers every time they shop at a store location.
Customers may not be noticing an item.
Try shuffling items on the pegboards. Studies have shown that eye level items have a tendency to sell better than items that are out of customer’s eyesight.
Take this tactic with a grain of salt.
Because Splash and Dash is a pet retail franchise some of our customers have four legs. Some of them are sniffing around on the ground, so if a dog smells a treat or toy they would like, the ground level might work to our benefit.
Keep remerchandising until you find what works.
Sales Event and Promotion
Placing items on sale is the number one sales tactic used by pet retail franchises.
However, use this strategy sparingly because it can backfire on shop owners. When sales happen too often, customers take on the mindset that sales are commonplace and will hold off on purchasing until a sale happens.
The Splash and Dash pet retail franchise caters to all budgets but a strong portion of customers look for higher end products and an upscale retail environment so high rates of sales can be off-putting.
Find the perfect timing, style of event, and price points for your territory and customers.
When done correctly, sales can be an extremely effective tactic in pushing inventory. Management consultants advice hosting an event that is store-wide. This maximizes the potential a sale can have. Sale events give the sale more urgency and customers are driven to purchase products sooner before the sale ends. A sales event with lots of “bells and whistles,” is what shop owners should aim for.
Drawing a huge crowd into the shop implies huge deals and inspires customers to make purchases before sales end and items run out. The sale becomes more preoccupied with the event than the discounts.
Also, if planned right, events without sales are very effective in drawing in traffic. Splash and Dash Groomerie & Boutique loves the holiday spirit and bringing in Santa to take pictures with customers’ dogs helps retain customers, boosts retail purchases, and creates opportunities to gain a larger clientele base.
The second most useful retail tactic is bundling items. It is effective on various levels for pet retail franchises during the holiday season because Splash and Dash strives to be convenient for customers as one-stop-shop.
- Bundle Products of the Same Items
- This is good for small to medium sized objects and prices that can be sold as a package.
- Bundle Complementary Products
- Customers naturally look for one-stop-shop purchases to cross everything off their list in one pet retail franchise, so toy-treat-shampoo combo-package that offers everything a pet parent would need is a great option.
- Bundles Slow Items with Fast Items
- Hot-sellers can offset products that aren’t selling as well by creating enticement.
Incentive Based Giveaways
Giving away “freebies” as an enticement or promotion is useful with low-cost items.
For example, if you have an item that is taking up room on the shelves and does not cost much, considering giving the item away for promotional use.
If a customer spends $75, sign up for a monthly membership, or if they get additional grooming like a pawdicure or facial they will receive the item free.
Return or Exchange Items With Vendors
This is not typical of Splash and Dash Groomerie & Boutique but things happen that are out of control for pet retail franchise owners, and retailers in general, and sometimes returning or exchanging items with vendors is a possibility.
Depending upon the sector, vendor, and price point this can happen.
This is not an ideal scenario but can help free up capital to make other investments.
Donate to a Dog Rescue or Other Non-Profit and Seek Tax Deductions
Research tax deductions in your state to see how the process works. Speak with your CPA or a tax attorney to see possibilities in earning a federal income tax deduction under section 170(e)(3) of the U.S. Internal Revenue code.
Any pet retail franchise must apply to IRS for qualification to become a qualified organization.
Deductions are limited to 50 percent of a shop’s adjusted gross income which is line 38 of a 1040 form. A shop’s qualifications are contingent on the type of property, type of organization, and itemization of deductions.
Follow Splash and Dash Groomerie & Boutique:
- Website: http://splashanddashfordogs.com/
- Website: https://splashanddashfranchise.com/
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- Instagram: @splashanddashfordogs
- LinkedIn: https://www.linkedin.com/in/dan-j-barton-622ab517
- Twitter: splashanddash4dogs