At the end of the year, many retailers holds their yearly stock clearance week. First, it is a good time to clear off all the redundant stocks that are not selling well. Secondly, it will look good on your balance sheet.
Pricing your Items
It may surprise you, but the prices listed on Stock Clearance week is not usually priced any lower than any normal days. The big banner says it is stock clearance. It did mention the words “Sale” of “Stock Clearance Special Discounts”. However, since it is your intention to clear off as many of those old items as possible, it is advisable to price them lower than the ususal price so you can get more sales.
You don’t have to sell below cost, but for items that you find extremely difficult to dispose off, selling below cost may be the final option. Remember that in a promotion like this, take the whole scenario as one complete entity.
Say for example, you have stocks valued at $5000 to clear off. Take this figure as one. If you manage to make $5,500 after the period is over, it is already a overwhelming success. You have dispose off all your old stocks, converted them to cash and made a 10% profit along the way.
So coming back to the items that you sold below cost, the loss has been evenly covered by those that you priced a little higher.
Advertising your Promotion Week
The best way to hold this promotion is to have it outdoors. Rent a brightly colored canopy and set it right in front of your shop. Pile all your similar items into a big pile. Scatter them around. People’s mentality is such. When you scatter the good in big piles on the floor or in racks, it will appear cheap even if the price is not. That’s the same reason why night market traders do so well.
Have big loudspeaker blaring away to attract passerby. Again, people are curious creatures. When they her a commotion they will be eager to check out what the commotion is all about.
Distribute leaflets and flyers announcing your promotion week. List out a few items that you are really selling below cost, making sure that they will not be able to get those items at a lower price anywhere else. Sate clearly the word, “While Stock Last!” This will make customers want to hurry to your shop and also prevent you from being chastised when they arrive and find that the items they want have been sold out.
And of course, don’t forget those banners.