Dead Stock to Cash
Imagine last season's stock paying this month's bills.
Millions of DKK in stock, some of it from seasons ago?
Selling to order, or clearing everything in the same sale each season? Then this won't add much.
See what still sells and what waiting costs.
| Product | Left | Sat for | Costs a month | |
|---|---|---|---|---|
| Wool coat, camel | 340 | 11 months | −4.500 DKK | |
| Cargo trousers, spring's hit | 880 | 7 months | −5.200 DKK | |
| Chelsea boot, tan suede | 310 | 10 months | −2.600 DKK | |
| Puffer vest, lilac | 260 | 13 months | −1.400 DKK |
Kept a year, slow stock costs about a quarter of what you paid for it, most of that the cash it holds.
Still worth the asking price
Each product's age and its weekly sales against plan show what still sells at full price.
Down to the size
You see which sizes are left, because 340 coats in one size is a different call from 340 across six.
Bestsellers stay off the list
A product selling to plan never shows up here, however much cash sits in it.
#stock
Stock watchMonday 08:00
Three products are selling below plan. All three still sell at full price.
- Merino cardigan, oat: 28 a week against 45 planned, 19 weeks of stock
- Corduroy trousers, brown: 31 a week against 52 planned, 16 weeks of stock
- Silk scarf, navy: 18 a week against 30 planned, 22 weeks of stock
Weeks of stock: what is left, at last week's pace.
Spring's hit sold a little less every week.
Spring's hit was the cargo trousers. Each week they sold a little less, but everyone remembered the rush at launch. Seven months on, 880 still sit in your warehouse.
With the weekly list, your merchandiser sees the drop while they still sell at full price. You choose whether to hold the price or cut it before the pile sits for months.
Choose when to sell before cash gets tight.
| Line | November | Owner |
|---|---|---|
| Cash at the start | 1.800.000 DKK | Finance |
| Sales coming in, after VAT | 6.900.000 DKK | E-commerce |
| Supplier bills, with spring's deposits | −5.900.000 DKK | Merchandising |
| Ads | −1.100.000 DKK | Marketing |
| Wages and rent | −1.300.000 DKK | Finance |
| Cash at the end of November | 400.000 DKK | Founder |
Weeks of warning
A tight month shows up weeks ahead, while a small discount still clears the stock.
Cash to use elsewhere
Cash from slow stock pays for ads, or for more of what sells.
Finance sees it too
You and finance use the same cash figures when you decide how long to keep the coats.
Keeping or clearing: see which leaves you more.
Keep them for next autumn
| 260 sold next autumn, after returns | 359.000 DKK |
|---|---|
| The last 80 in the sale after that | 77.000 DKK |
| What the coats cost you | −218.000 DKK |
| Space and insurance, ten months | −9.000 DKK |
| Left for you | 209.000 DKK |
Clear them in January
| All 340 in the January sale, after returns | 362.000 DKK |
|---|---|
| What the coats cost you | −218.000 DKK |
| What the cash earns in ads by autumn | 78.000 DKK |
| Left for you | 222.000 DKK |
Clearing wins because your ads earn more on the cash than the coats earn by waiting.
Every slow product, two ways
The boots and the vest get the same comparison as the coats.
How you sell it stays yours
Outlet, marketplace or your own sale: you pick the route, and your team runs it.
Keeping can be right
If the cash has no better use, waiting for next autumn leaves you with more.
Your team marks down without waiting for you.
- Nothing is marked down in its first eight weeks.
- Up to 20% after twelve weeks below plan, without asking the founder.
- No second cut within 30 days of the last one.
- Coats and knitwear stay at full price until January.
- Anything deeper, or below cost, goes to the founder with three options.
Written once. The team and the agent both work by them.
Changes you can trace
Each markdown keeps who approved it and when, so you can look back at any price.
Three options when it is yours
A cut past your rules reaches you with three options, each worked out in DKK.
Rules you can change
Change a limit in one place and the agent works by it from the next suggestion.
#stock
Markdown agentTuesday 09:10
Wool blazer, grey: twelve weeks below plan. Your rules allow up to 20% without the founder.
- Suggested: 20% off from Thursday
- Still above what each blazer cost us
- Approve or change it in this thread
The suggestion names the rule it used.
The blazer's markdown is settled in the thread.
Today, a slow product sits until someone spots it and brings it to you. Then it waits for your reply while you deal with the rest of the shop.
When a suggestion fits your rules, Merchandising answers in the thread. The price change gets settled without another job on your list.
What each unit really cost, including freight and duty, comes from Steer by Profit, Not Sales.
- 25%
of its value a year, what slow stock costs to keep
Slow stock costs around a quarter of its value a year to keep. Get that cash back a season sooner.
One of the tools you can ask for in Tools as a Service.
Tell me what's still in the warehouse from last season.
Write a few lines about the business and what you can't answer today. I'll reply myself, and if it's a fit we book a call.