How to Turn Clearance Inventory Into Net Profit
Wouldn't it be better if your clearance inventory created a net profit and you never took a net loss?
Wouldn't it be better if the value of your full price inventory wasn't eroded by clearance products?
Death, taxes, and clearance inventory. In brick and mortar and online retail, clearance is a fact of life. There will always be:
· Broken size runs and less popular colors
· Last season's styles and models that didn't sell as planned
· Products and brands you don't intend to reorder
You've followed your markdown cadence and even when discounted to 50% off, you still have leftovers. Too much clearance hurts your store's brand image and discourages customers from buying your full-price products. You think your options are:
1. Continue to mark items down below your cost until someone buys them
2. Sell them to a local liquidator for pennies on the dollar
3. Donate them for a future tax write-off.
· You had access to thousands of wholesalers nationwide actively seeking your aged inventory?
· Your leftover products with limited local demand had greater value to another business in a different market?
· You could sell your clearance to the highest bidder in bulk and get immediate cash to reinvest?
· You'd realize a net profit that's at least 4x your current aged clearance inventory cost.
· Your $2 million store would grow revenue by an average of 18% and net profit by over $100,000.
· You'd sell more merchandise at full margins and have additional cash to reinvest in your top-performing products.
There is an opportunity cost associated with your clearance inventory. Each day you spend waiting to get your investment back is another day you could have put the money to good use buying new, full margin price product.
Use our calculator to discover the hidden value of your clearance inventory and see how much net profit you can gain using BoxFox: