Are you finding yourself at the end of your clearance sale wondering what to do with what’s left? I hear this every year, and Charlene just asked the question on everyone’s mind.
When you need to get rid of stock, like clothing, how low in discount should you go? I often wonder if you should take the hit to get rid of the old to bring in the new, or should you pack it up and put it on the shelf for next year?
That’s a great question!
The answer is that you take it as low as it needs to go to be attractive to a buyer! Down to 75%, and you don’t mark it back up!
If it still around at the end of your sale, pack it up and bring it back out (at 75% off) for your next sale. As it gets to the end of that sale, mark it down to whatever you have to. Nothing should hang around for more than 2 Killer Clearance Sales. My client, Candace called because she had to move out some costumes. What to do? Sell ‘em for $1. They are gone! She was so happy to get rid of them.
One little caveat, you can donate items to a worthy charity and get a write off for the value of the item at COST. (Of course, double check this with your accountant.) For some of you, a write off is good – but for some of you cash is better. Frankly I always took the cash.
We did a little video that explains why you absolutely WANT to take the hit, why Candace was happy to take those $1’s and why it’s so crucial to your profit and cash flow to move it out.
I love answering your questions – and remember – if you’ve got them, others have the same issue. Email and ask, I’ll always answer!