When is it time to say goodbye to your old inventory? Although it may be comforting to keep these old friends around (don’t laugh, some jewelers really do think that way), at some point, like in any bad relationship, you must simply acknowledge that it just didn’t work out and move on. My rule of thumb has always been that after five calendar years of trying to sell and marking down your buying mistakes, they simply must go away forever. Some stores may think that is not enough time, but trust me, that’s a more than adequate time frame.
Here are three successful ways you can get rid of your old and tired inventory.
1. Sell it off to a closeout/wholesaler.
There are dozens of these companies now, all ready to buy and fiercely competing against each other. With metal prices still high, your old inventory may be worth more than you think. You may be able to come close to breaking even, or maybe make a small profit. Don’t forget to negotiate; they need to buy your inventory to stay in business.
2. Repurpose it.
I know that sounds simple, but most jewelers just keep putting it off as it can be an unpleasant reminder of buying mistakes. Keeping your old inventory in the showcase makes your new inventory look bad and also negatively affects your staff’s morale. Put one creative person in charge of this redesign project. What didn’t sell as a ring may very well sell as a pendant or vice versa.
3 Give it away.
There are so many great local charities always looking for donations, what a hero your company will be to the local community and beyond. Make sure you and the charity post pictures and information of the donated items on all available social media sites. You will definitely pick up new customers, and in this economy, who doesn’t need that? If the event is covered by your local media, think of all the free advertising you’ll get as a bonus, as well as a complete tax deduction.
Evan James Deutsch is founder and president of Evan James Ltd., a 30 year old AGS Jeweler located in Brattleboro, VT.
This article originally appeared in the May 2017 edition of INSTORE.