What counts as dead stock
Stock that hasn't sold for a long time: 60 days for fast fashion, 90 days for most readymade, 180 days for sarees and fabric. Look at its value at cost price, not the selling price. That is the money you have actually spent.
Find it
- List what hasn't soldFrom your billing software, list items with stock that haven't sold in 90 days, with their cost value. In Tizo POS this is the Dead stock report (30, 60, 90 or 180 days).
- Sort by money stuckStart with the items holding the most money, not the most pieces.
- Find the reasonOdd sizes left over? A colour that didn't move? A season's design? Damaged or shop-soiled pieces? The reason decides the fix.
8 ways to clear it
- Clearance offer: a flat discount on just those items, for a fixed period.
- Bundles: buy 2 get 1, or a free item over a bill value, to move odd sizes.
- Move it: to the front, near the counter, on a clearance rack, or into the window.
- Sale seasons: keep it for the Pongal or Aadi sale instead of cutting the price now.
- Return or exchange it with the supplier if your terms allow.
- Send it to your other branch, where that size or colour may sell.
- Sell it in bulk to a wholesaler or a smaller shop, at cost or a little below.
- Gift vouchers and loyalty: offer it to regular customers first.
Buy less of it next time
- Look at which sizes actually sell in each product, and buy in that ratio.
- Buy smaller quantities of new designs, and re-order what sells.
- Check the dead stock report every month, not once a year.
- Record purchases with their cost price, so you can see real profit per item.