When Excess Inventory Becomes a Deal Killer

Checking inventory

Selling a business with a lot of inventory can be a real deal killer. After all, if you don’t move the products you have already, how is a buyer supposed to view your business as a profitable enterprise?

But, sometimes excess inventory happens. Maybe you got a great rate on products in bulk. Perhaps someone talked you into buying more upfront and the plan didn’t pan out. Or perhaps you just weren’t planning on selling your business soon, but now plans have changed. 

No matter what brought you into this situation, getting rid of excess inventory quickly and for a great price could be just what your business needs to give your listing new life. Consider these strategies to restructure your predicament.

1. Use a Middle Man to Make it Happen

There are a lot of salespeople out there willing to pick up excess inventory and flip it for a profit. Getting your inventory off your hands quickly like this can be a great strategy for businesses like restaurants that may have a lot of excess produce and meat products that are close to expiration. 

By reselling excess inventory before it goes bad, you have a chance to regain its value into your bottom line. Don’t be afraid to reach out to a middle man service if you have a product that is close to expiration. Ensuring your sales numbers make sense on paper is the most important aspect of your deal.

2. Retrain Your Sales Force

If you have a lot of inventory on hand, there are a lot of sales competitions you can use to create an environment where your sales force feels incentivized to get rid of the product quickly. 

Consider coming up with competitions for your salespeople that allow them to profit off of selling in bulk to get rid of excess inventory.

3. Sell at Cost to Businesses That Aren’t Competitors

Selling your inventory to competitors is a great way to shoot your buyer in the foot. You want to make sure every deal you make sets up a potential buyer for success.

Consider selling the inventory at cost to businesses in your area that aren’t considered direct competitors as a way to reduce your stores without reducing their value.

For More Help Selling Your Business

Getting inventory out of your warehouses is key to coming to a good purchase price for your business. But, selling off everything you have doesn’t leave the buyer in the best place for fulfilling orders in the future.

Knowing how much inventory to have on hand and maintaining a solid flow is key to maintaining the functioning of your business. That functionality will directly impact the sale price of your company. 

If you’re having trouble walking the fine line between oversaturated and underfilled, contact me today for help putting together a plan.