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Old stock or slow moving stock is typical in retail, how do you get rid of that stock in a profitable manner?

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Question added by Henre Hendrikus Barnard , Management Trainee , Obaro
Date Posted: 2016/01/24
Duncan Robertson
by Duncan Robertson , Strategy Consultant , Duncan Robertson Consultancy

You don't.   Or rather, whether disposing of it is profitable or not is irrelevant.  What matters (apart from cashflow, obviously) is the profit on the new stock that replaces it.   In other words, it's worth selling off old stock at a small loss in order to make room for new stock which will sell at a large profit. 

There are two standard methods of disposing of old stock.  You can either sell it at a discount to the public, or sell it to the wholesale trade.  

Zaina Buraik
by Zaina Buraik , Central region sales area manager (Loreal) , Arab Trading Supplies

Sales will help you to sell your stock, income is not going to be high but the profit is clean . 

Heorhiia Pencheva
by Heorhiia Pencheva , sales representetive , CBC International

you can make a sale or discount on this items , you wont get a good profit , but you will save some money and it will attract more clients in the same time  

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