Here’s How to Unload Your Dated Inventory This Holiday Season

THE HOLIDAY SEASON is a perfect time to unload dated inventory. After all, what do people do in December? Buy stuff, lots of stuff.

Here’s one suggestion:

1. Have a sign on the counter (and have your staff ask the same question) that says, “Who else is on your list? Choose a gift basket with gifts already selected for them!”
2. Make up a dozen gift baskets and put an array of jewelry that’s already in a jewelry box but open, so customers can see what’s in them. When they get home, everything’s in a box and all they need is to wrap them and add a card.
3. Price? Add up the retail and put it on the basket: “Total 7 items = $289. Christmas sale, all contents in this basket on sale for $175.” Make baskets that range from $99 to $699.

Some customers will buy because an item is on sale. But what about free?

This is how it works. For the holidays, take one showcase and put dated items in the case that you’d like to get rid of. Mix it up with lots of different items and price points. You then do an offer: “Buy one, get one free,” or maybe “Buy one, get another at half off.” (I like “free” better.)

When customers come in, tell them, “After you choose the gift of purchase today, let’s go to showcase number 7, and whatever you pay for the gift of your dreams, in case 7 you can have any item that has a retail tagged price of 40 percent of what you bought today, on us, absolutely free. For you or someone in the family.”

There would be some minimums, but I’m a numbers guy and we’re looking to move merchandise. Here’s how it works:

1. The customer buys a $1,500 holiday gift.
2. They can go to showcase 7 and get for free anything in the case at a retail tagged price of 40 percent of $1,500, which is $600 retail.
3. Assuming keystone or higher, you’re giving away an item that cost you $300.
4. Giving the $300 item away is the same as taking $300 off the $1,500 item, which amounts to a 20 percent discount. The beauty is, if you discounted the $1,500 item by 20 percent, you’d only have $1,200 in the till. But by having them take an older inventoried item that cost you half of the tag, you get to keep the full $1,500, the old jewelry is moved out and the new item was sold at full markup.

Adjust the numbers to your liking and give the staff a spiff to make it happen (maybe a $25 spiff in addition to whatever you compensate them). Happy cash-positive holidays!