The fundamental truth of running a business is that it’s not always a smooth sailing operation. There are risks that can affect the market. Making sure that the risks are mitigated and heavily reduced is to make sure that they are assessed and prepared for accordingly. However, the market can be just as volatile as the whimsical nature of consumers. For the most part, businesses can sustain regular operations with a good profit margin. But every once in a while; they end up with a surplus of supplies. This is because the number of buyers failed to satisfy the expected target sales of the store. In these scenarios, stores employ several sales tactics to make sure that they cut their losses just right to avoid heavy setbacks.
One way that businesses sell their surplus is by bundling it with other items. Sometimes, all items in the bundle are categorically surplus items. Sometimes new items are mixed in to avoid making the bundle look like a reject or an afterthought. The key is to make customers feel that they are getting a good deal out of it. But then again, it’s not like customers are being ripped off. It’s just another way of presenting the product to them in a way that catches their attention. It’s also a great idea to time these bundles in times where the demand for it spikes. Parents, for example, buy school supplies for their children in bundles to save time and money. It’s impossible to resist low-cost school supplies that their children can use for the next few months.
Another tactic that large department and retail stores use to quickly sell surplus is to put up sale prices. This is a double-edged sword and some stores would rather opt for the ‘buy one get one free’ model. The gets rid of more items quickly and at a price that’s practically 50% discount for every item. Then selling them two at a time. The trouble with slapping on discount prices on items is that buyers are left with the impression that the discount rate is the actual profit that the store makes during its regular selling price.
One other notable way that businesses get rid of surplus is to contact businesses who buy wholesale products for resale. Businesses like this exist because surplus items are bought thereafter buy smaller businesses. They serve as the middlemen of large stores and smaller community stores that offer specialized products to their localized consumer base.