How do I deal with excess stock?


I have trouble maintaining excess stock.


Make sure you make a plan of possible demand for the quarter before you place an order for your stock. This is called forecasting, and helps you keep just enough stock to meet the demand.

Overstocking/having less stock can be dangerous for your business, if not controlled.

  • Stocking above requirement increases your costs of warehousing and maintenance . It also means your cash is tied up , and cannot be used for other important purposes.

  • Overstocking can be damaging if your products are perishable and there is a fluctuation in demand .

  • A shift in demand, owing to changing trends, could be disastrous if you are overstocked/understocked. Forecasting helps to understand these trends in advance and protect against possible losses .

  • You might need to get rid of excess stock by offering them at reduced prices – leading to a fall in profits .

  • Having less stock could result in loss of sales, loss of customers, and eventually, a decrease in profits .

If you have excess stock, you can try to sell it off by offering discounts.