I have never in my travels found a dealer who does not have some old product in stock, hanging on the wall or a shelf that refuses to be sold. More than likely, it’s some special order that was rejected, never picked up, possibly not paid for and only fits an obsolete model or someone’s specific taste.
How many birthdays will this product have before you find it and decide you should get it out of inventory?
The unfortunate truth is inventory control does not truly exist in your store if you are in possession of birthday inventory. Some states tax inventory, so to keep inventory and at the full value is a killer. Birthday inventory could only be $2,500 worth, but moving that will provide cash flow and assist in you reinvesting in inventory that will sell.
So let’s hear from you all: Who’s willing to take the challenge and admit they have a birthday inventory stinker?
What products do you have and let’s see who admits to having the oldest. Anyone with a product in inventory that is 4 years old? 5 years old? Gulp, 6-plus years? And what is it? A jacket, wheel, chrome bolt-on item?
Now, let’s say you have 10 days to get rid of it, what is your plan?