[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”medium-visibility,large-visibility” status=”published” publish_date=”” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”20px” padding_right=”” padding_bottom=”” padding_left=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ spacing=”” center_content=”no” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_image_id=”” background_position=”left top” background_repeat=”no-repeat” hover_type=”none” border_size=”0″ border_color=”” border_style=”solid” border_position=”all” border_radius=”” box_shadow=”no” dimension_box_shadow=”” box_shadow_blur=”0″ box_shadow_spread=”0″ box_shadow_color=”” box_shadow_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” last=”no”][fusion_title hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”center” size=”1″ font_size=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” style_type=”default” sep_color=””]

Dead Stock

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What does dead stock mean?

Imagine carrying a really heavy backpack around day in, day out. Sure, you can still move, but lugging it up a mountain will leave you exhausted. Imagine the sensation of dragging that extra weight around… and now imagine your business feeling the same way.

It may seem that your products are selling well, your revenue is increasing, and customers are returning to your store – but somewhere in your inventory, there’s a high chance that with every change of the season, there’s an ever-increasing amount of products that simply won’t sell. That’s what we’re talking about when we refer to dead stock.

Dead stock meaning: How do we define it?

Your dead stock are the products unlikely to ever move from the shelves, and while it may seem that they’re not doing any harm, they’re surely taking up valuable space and finances which can be better put towards growth.

Cost of dead stock examples: What is the true price of holding onto it?

Just think about how much you’re losing through carrying costs by choosing (inadvertently or otherwise) to continue holding onto dead stock. First, there’s the opportunity cost of using precious space to store these products. For every shelf dedicated to dead stock, that’s a lost opportunity to stock up on more of your top selling products. Are the benefits of choosing to hold onto dead stock enough to outweigh the potential of freeing up that space to increase revenue? Probably not.

On top of the opportunity cost, there’s also storage costs to think about. These can take the form of rental costs for warehouses, the money spent on utilities, insurance, security, and equipment… the list goes on. All these inventory costs are supposed to be covered by your revenue from selling your products, but your dead stock isn’t pulling its weight in helping you cover these expenses. Instead, you’re spending money on storing them.

Dead stock is part of the ghost economy that could secretly be costing your business 11.7% of your revenue. Download our comprehensive guide to stop your business losing profits to the ghost economy here.

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CONTACT NEOCORT

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