Say, a person has been hoarding canned goods in preparation for the so-called “end of the world” on the 21st of December. He has been stocking canned beef, sardines, and veggies for more or less five years now. But December 21 comes around and there’s no visible sign of the things he saw in the movie “2012.” He wakes up on December 22 and everything is the same as it always has been. He then roots around in his pantry only to find that most of his unopened canned goods are past their shelf life.
The extra canned goods would’ve been better off given away to hungry people. As it is, the 5-year investment ended up being for nothing. The same principle applies for stores with surplus stocks: the excess products will eventually go to waste (especially if they’re perishable) unless they find a way to sell them. This is why they resort to marketing excess inventory sales.
Although having an excess inventory of items is considered normal, there are times when there is simply too much. This is usually caused by a number of factors, including poor management of stock or supply. The seller most likely failed to get rid of the old stock before filing an order for a new batch to be delivered.
It’s imperative that stores sell excess canned goods and other perishables first. First and foremost, they have to consider the expiry date of each. The rules of business demand that items nearing their expiration must be sold as soon as possible. Usually, store owners cut down the price of old stock by as much as half to make them more attractive to consumers.
Good inventory management is the key, whether for selling goods in commercial establishments or for storing perishable products at home. Stores cannot afford to have stocks linger in storage, lest they lose a huge portion of their income. Similarly, homeowners cannot indulge in hoarding; otherwise, they run the risk of wasting their purchases should they exceed their shelf life.
If you want to know more about selling excess stocks, you can browse resource websites such as EHow.com. A good analogy for this topic is a buffet that charges extra for leftovers. For fear of being sanctioned, you must remember not to take what you can’t finish.
More Inventory Sales are Normal but Too Much Inventory isnot