One of the biggest concerns businesses have when closing down is what to do with all of their merchandise, extra inventory, and fixtures. Excess inventory equals wasted money, so it’s important to sell as much of it as possible before and after your business’ doors close. Fortunately, there are many ways to sell your inventory when you decide to shut down your business.
Call your local Price Auctions & Estates Auctioneer for an informal appraisal before selling. There may be much better options available than a long and drawn out process.
- Hold a sale in your store for three or four weeks leading up to your official closing. Make the discounts large enough to encourage customers to buy as much as they can — between 40 and 70 percent off is ideal — and make sure you place signs in and around your business indicating that you’re selling off merchandise. You should also publicize the sale through your social networks, website and local media outlets.
If you don’t have a physical store, you can hold an online sale, which is even more beneficial since you will have access to a great number of potential customers.
- Set up a post-closing sale. Place classified ads, both in print and online, notifying people that you’re selling off your leftover inventory in bulk — be sure to make this distinction to prevent people from coming in and trying to buy one or two pieces. You should also make it clear that you will only be open for a few, limited hours. You should set a minimum amount for each purchase, such as $100 or $250.
At this post-closing sale, price your items a bit lower than you did before your closing. For instance, if everything was 50 percent off during your going-out-of-business sale, you could make everything 70 percent off during your post-closing sale. Do not advertise this sale before you close — you want to sell as much merchandise at a higher price as you possibly can.
- Sell off all inventory left after your official closing date and post-closing event through a business-to-business liquidation auction or sale. You can either organize such an event yourself, or hire a company that specializes in liquidating merchandise. You will make less money this way than you would selling your inventory in-store, so do all you can to push merchandise before your closing.
- Donate anything that you can’t sell — it is quite possible that you will be left with a few pieces. Though you won’t technically be selling this merchandise, you can get a receipt from your chosen charity or organization for tax-time and deduct the value of the items, which will save you money in the end. Be aware though, some donations are off limits to many places.