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What's on your shelves?

Sometimes, retailers get so attached to inventory they come to think of it as their baby. They want to hold on to it … and hold on to it … and hold on to it some more.

For some, they'll hold on to it while stubbornly believing they'll make their usual margin. They'll even pack it away for next year's season, holding on to it long after it looks old and unappealing. That's guaranteed formula to kill sales and profit beyond the product that isn't moving because it will hurt your brand.

For others, they'll hold on to it in hopes of just getting back their original investment. Understandable, yes. But, in the end, still not very practical if it's still not moving.

I don't look at inventory as my baby. I look at it like a teenager who's been planted in front of the television. And, if it's been there too long, I'm going to shout, "Don't just sit there! Get moving and get out of here!"

There's a reason mega-retailers have regular inventory clearance sales. It's just smart business.

Inventory that isn't moving is costing you money every day, every hour, every minute that it sits there doing nothing. You've already paid for it once. Don't keep paying for it. That money is gone and it's not coming back. The space that non-performing inventory is taking up is not allowing you to have space that will earn you dollars. Especially for small retail stores, your space is at a premium and every square foot of it needs to be making money. 

Cut the price to whatever level is necessary to get rid of it. Take your loss, change your inventory and get on with your business.

I've even donated non-performing inventory to charity just to clear space for something that will sell and boost my profit margins to where they need to be.

Take a look around your business. What's on your shelves that needs to get moving today?

-Kelly Sharp

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