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If your company has a huge stock of last year discontinued women's clothing,they must be sold within a month without loss .what will you do ?any ideas?

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Question added by amer jayyousi , Business Development Consultant , freelance
Date Posted: 2013/12/06
Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

Must have special offers and special sales or huge discount.

Mohammad Tohamy Hussein Hussein
by Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

Tha depends on your role. Conceptually, I suggest the following:

Assume break-even pricing as the base price

Use incremental analysis to assign the price and consider opportunity cost ans stock cost

Get sales & marketing to define the best market to perform the sale and plan it

Go for it. I guess that women clothing is a product with hign price elastiticty.

Ezzidin Ibrahim
by Ezzidin Ibrahim , Financial Controller , Karim Food Industries

We will sell the stock at a price by which the company will not make any losses and same time will not make any profit, this is the point at which the marginal contribution is zero (where the selling price is equal to the cost of the raw materials plus the variable costs of the manufacturing overhead). This is the lowest selling price that can be chosen to sell all the stock within one month without making any losses. 

Imtiyaz Loya
by Imtiyaz Loya , Executive Manager - Business Development - Hosted & Managed Services , Mobily

Classify the items in accordance with their expected demand and market response.

Work out average prices for upper, mid and low level categories

Work out pricing for the above with more profits for highest level and loss for lowest levels

Plan for a retail event and invite consumers as well as local wholesale buyers

Top up the prices and offer discounts.  Once people start flocking in and buying out in retail, wholesalers are likely to get impressed.  You can even end up making profit if you execute it properly

Deleted user
by Deleted user

selling the stock product doesn't  meant will loss the company's profit and what we can do is,

analys the total cost for these stocks including export fees, tax, prices, and get the price range from competitor.

then we will get the accumulate amount for these stock so our job is how to get paid back for this amounts and even get the profit as well,

then build sales team to create an idea to sale these items whether put discount, put prices10 percent lower than competitor on selected items, advertise the sale ( cost for advertisement  must be included on the selling price,

in order to meet the deadline within a month to selling the product, it doesnt meant the company will loss the profit, it doesnt meant all the items has sold. yet, to get paid back for all the expenses for purchase these items is the first Mission that must be achieved then sell the rest items to earn  more the company's income.

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