According to The Gordon Company’s Retail Jewelry Insights, as much as 25% of many jewelers’ inventory was unproductive last year. Given the downturn an even a higher percentage of this “toxic inventory” won’t be what customers want this holiday season.
Today, we offer tips on how to dispose of hard to sell inventory. The following suggestions can be found in “Toxic Inventory Threatens Jewelers”:
- Sell to a surplus inventory buyer: While this is probably the best way to turn illiquid inventory into cash quickly, it will likely yield the lowest return.
- Research options: A number of companies specialize in purchasing excess jewelry inventory. Just be sure to do your homework and identify a firm that offers the best solution for your business.
- Offer special sales: A properly run sale can offer jewelers higher returns than selling to a surplus buyer.
Jewelers of America’s David Peters offers additional tips:
- Take markdowns at least monthly: Keep in mind that just because you marked it down doesn’t mean it has to go in the clearance case. Sometimes a small markdown is all that’s needed to move an item.
- Reward employees for selling aged merchandise: Consider extra spiffs or a higher commission rate.
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