Dead stocks are a major pain point for women’s apparel manufacturers. When there is dead stock, manufacturers spend a large amount of money to keep the stock safely. Having dead stocks in the long run eats into the profit margins and causes unnecessary stress.
How to avoid the problem of dead stocks in your apparel business?
Here are some simple tips you can follow to ensure that your apparel business does not incur losses due to dead stocks –
Keep Low Stocks:
If you buy in small portions but follow more billing cycles, you can always get the latest stock of products.
Focus on Hot-Selling Products:
Once you know which products are selling the most, keep larger stocks of those products in your showroom rather than those with low demand.
Make Precise Purchases:
Suppliers may pressure you into buying and keeping larger stocks by setting the minimum buying quantity. Do not bend under such pressure and always buy precisely based on what works for your business.
Invest in the Best, Original Products:
You should buy only from B2B suppliers and wholesalers as they keep filtered collections of products. It will ensure that you only get the best and latest products trending in the market. Also, always deal in high-quality, original products only and stay away from copied or fake products to maintain your reputation.
Review Your Stocks Regularly:
Every two weeks, you should review the total purchased garments and the total sold garments of a particular supplier. It will give you a clear picture of all the suppliers and how their products are performing at your store / showroom.
Review Your Monthly Expenses:
Just by analysing and studying your monthly expenses, you can up to 20% of your spendings.
Research How to Save More Money:
Talk to your suppliers and get their insights on how you can cut costs and save more.
Implement Good Retailing Strategies:
To increase your retail sales, improve your retail services, sell only quality merchandise, offer better facilities at your showroom and regularly introduce new promotions to grab the attention of your present and prospective customers.
As a women’s apparel retailer and small business owner, it is in your best interest to reduce your expenses wherever possible and this means, you must start reducing your dead stocks. Make the changes mentioned above and watch how your profits soar!