What’s it all about?
Specialist companies dealing with clearing higher volumes of low coded, label discrepancies, damaged, or unwanted/obsolete products.
- A way to clear larger volumes of low coded, label discrepancies, damaged, or unwanted/obsolete stock that you do not want, or cannot sell through your business
- A revenue is realised rather than giving away to charity or using a waste disposal route
- Reduces company losses, clears stock that ties up cash, lowering stock holding and releasing valuable warehouse space
Not so good
- May not be suitable for own label products within your business
- May damage a label/brand/product if seen in the Market place at reduced costs
- May in some circumstances end up with a competitor at a lower (more so if not low coded)
- No CSR benefit as opposed to donating stock to a charity
- Offer out to trusted customers/clearance houses, to ensure you know end of line sale.
- When selling, play other jobbers/clearance houses off with each other for bids to drive your final selling bids up.
- Try and secure as much funding as possible back from suppliers to cover losses. As majority of the time there’s a genuine reason why a line has got to a low coded stage (usually because it hasn’t sold and why the shelf life has almost expired).
- Most important of all, try and capture lines that you believe will not sell and eventually become low coded ASAP. This way, you can clear them before they become too distressed and get more money for them and reduce your losses. Why wait until the last minute ??!!
See a list of Clearance Houses with contact details here.