Many businesses end up with surplus or excess stock through no fault of their own, and converting these overstocks into cash is extremely important if you want to keep your profit margins healthy and free up the cash in your investments. There are several different ways to sell your excess stock and you need to be careful that you pick the solution that’s best for you and the future of your business.
At Coorey & Co we have been selling overstocks for more than 20 years and we’ve come to understand that there are four vital steps in making sure that you get the best price while keeping the integrity of your brand and your company intact.
Step 1: Create a product description and detailed outline of what you are selling
When it comes to excess stocks, some buyers can be very wary about it is that they are purchasing. If you don’t pay attention to the way that you market your products, as you would if you were selling to the public, then buyers may well feel that they are getting substandard products. Be honest about what they will get when they buy your overstocks. Try putting together a professional email that you can send out to potential buyers. Include as much information as possible and show off all benefits of the product.
Step 2: Create compelling copy and a short sales pitch
While it is important to be very clear about the product that you are selling, make sure that you also create a compelling headline for your email and a short opening paragraph to catch the attention of your readers. Purchasing managers can receive several hundred emails a day offering them promotional deals, so you need to make sure that yours stands out from the crowd.
Step 3: Research your market
It is essential that you do some discreet research on your market and the price that goods are being sold for. Understanding what is out there, and how much is being asked for can help you to get a realistic concept of how much you will be able to charge for your own overstocks. Make sure you research other states and territories too – prices can fluctuate wildly from one place to another and there is no point in selling your excess stock in an oversaturated market. You may well get a much better price for it 50 kilometres further away.
Step 4: Protect the reputation of your brand
When you approach potential excess stock buyers make sure that you have the preservation of your brand and company values at the top of your mind. Always find out details about how and where your overstocks will be sold. This will avoid the potential problem of finding that your product is being marketed in a way that you are not comfortable with. Be particularly cautious about your reduced price stock being advertised to current customers, therefore devaluing your brand and making it tough to sell at the regular price in the future.
Selling excess stocks can be a long and complicated procedure. If you do not follow the steps and rush into a sale you may find that you end up with very little profit and this may also have an impact on the future of your company.