When should I mark down and clear slow selling products?
The first cut is the deepest. There is a saying in retail; your first markdown should be your biggest and best.
We all end up having something that does not sell well whether it is fresh flowers or gift lines. These products are burning a hole in our pockets. So what should we do?
1. The longer you take to decide whether to mark down or not, the more money you are losing. Work out your strategy based on how long you have had the product and what the market place (your customer) will pay for it.
2. Cut your price deep and hard once to make sure you will get your money back to live and buy another day. Slowly marking down your products does not have the impact you need to turn slow selling stock into cash. You need the “shock factor” of a great deal.
3. Consumers are very savvy these days and are looking for a bargain. Use your markdown or clear out merchandise as a positive, giving your customers back value and making them want to come back again.
Mark down and discount policy are not to be confused. Have a strategy and do not go overboard. Slow turning stock makes your retail experience look poor you need to recover your dead stock capital to reinvest in fresh new merchandise.
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