HOW TO QUIT STOCK

If you want to quit stock, quit it, quickly. It's not working, right? So, the sooner it is out of the business the sooner you have free space and some freed up cash.

here are our tips for managing quitting stock:

1. Know what to clear. Run a Ranked Sales Report for items not sold in six months, a year - you choose the period - and from this list choose items to start clearing. In choosing items, however, don't approach this as traditional retail. You don't need to tell a story in your clearance area.
2. Pricing advice. If you have long since paid for stock you are clearing, don't obsess about price. You are clearing products because they are not selling. Don't chase profit. At this point, any cash you get for the items is better than them sitting on the shelf and not selling. 
3. Have a permanent clearance area in the shop, with a professional CLEARANCE sign. This area should be the only area where you place clearance items. Train your customers. Train yourself and your people to not put clearance items anywhere else. Usually, permanent clearance locations in a shop are not in a high traffic area. They tend to be toward the back, often in a corner. This is where a professional, bright, sign is key.  
4. Use Was / Now price labels. These show the usual price and your now clearance price.
5. Have one or two dump bins for price point clearance options like $1, $2 or $5. Consider the dump bins a second step from the clearance area to a lower price point offer. Use some form of sticker or marker on products to understand their bin price.
6. Know what your customers understand. Some may struggle with 50% but may understand half price while to others a $7.50 item in the $5 dump bin may look like a better deal.
7. Have a plan b. Items should only be on in the clearance area for a maximum period of time. If something is not moving, you can either drop the price further, donate the items or throw them away.

Our suggestion is that items are in the clearance area for no longer than a month. The key is to have this area turning over.

Bringing structure to how you clear non-performing stock items should help you more successfully clear them from the business.