Start decisions about seasonal stock with product quantities, their cost, and sales across comparable periods. Count the actual stock and calculate the cost of storing it longer. Then decide what to do with each product group and account for remaining stock in your next purchase.
Do not apply the same discount to the entire seasonal range. Consider products that continue to sell, but more slowly, separately. Before reducing prices, calculate the costs: even a small discount may require a significant increase in sales volume to maintain profitability.
Count the stock and make a list of what remains
Ask an employee to count products on the shop floor and in storage areas. Compare the actual quantities with inventory records. Resolve discrepancies before deciding how many units to keep or offer to customers.
For each item, record the SKU, product variant, available quantity, storage location, and purchase cost per unit. If a product has sizes, list them separately. Do not combine different variants into one row when checking availability.
Divide the remaining stock into groups for decision-making. Separately flag products that are still selling, but more slowly. For each group, record the number sold during the period selected and the quantity remaining.
Compare the same seasonal periods
For comparison, use equivalent periods from different seasons. Account for seasonal changes in purchasing. Do not draw conclusions about the entire range just because overall sales fell after the peak.
Review each group separately. Alongside the results, note which promotions ran during the corresponding period. The sell-through rate shows what percentage of stock was sold to customers over a set period. Use it together with the quantity and value of the remaining stock.
Illustrative example: same starting stock, different amounts left
Suppose a shop received 100 units each of product groups A and B. Starting stock was zero. The sales periods were the same; there were no additional deliveries, returns, transfers, or write-offs. The purchase cost per unit was an illustrative UAH 300.
| Metric | Group A | Group B |
|---|---|---|
| Sold | 80 units | 50 units |
| Remaining | 20 units | 50 units |
| Sell-through rate | 80 / 100 × 100 = 80% | 50 / 100 × 100 = 50% |
| Value of remaining stock at purchase cost | 20 × 300 = UAH 6,000 | 50 × 300 = UAH 15,000 |
Under these conditions, more units and a higher value of stock at purchase cost remain in group B. Start by checking its variants, future sales, and storage costs. The percentages shown are not benchmarks and do not indicate profitability.
Choose an action for each group
Excess stock increases holding costs. These depend on the volume of stock and how long it is stored. Record the expected storage period and your shop’s own costs before keeping products until the next season.
- Continue selling. For products that are still selling, set a date to review the remaining stock again. Compare the number of sales between reviews.
- Consider a bundle. Combining slow-moving stock with a popular product may help sell the remaining items. Choose what goes in the bundle and calculate its price, taking costs into account.
- Consider a price reduction. Before launching an offer, account for the purchase, transport, and other shop costs for the product and its sale. Do not assess the decision only by the number of units sold.
- Check supplier returns. Find out whether the contract allows returns, and check the acceptance terms and costs.
- Check carrying stock forward or using another channel. Assess the product’s condition, storage requirements, transfer costs, and the rules of the chosen channel. Decide after completing these checks.
How to analyze stock as of a given date in Torgsoft
To review stock at the end of the season, use the stock analysis feature in Torgsoft. The program lets you analyze stock as of a specific date by supplier and accounting center.
The owner can select the period-end date and a specific supplier to review the relevant stock. Use the results to list products whose storage costs need to be assessed or whose contractual return terms need to be checked. Separately compare inventory records with actual availability.
Keep in mind a limitation of stock analysis by accounting center: when filtering by a specific accounting center, the result is accurate only if that product has not been transferred between accounting centers. Check internal transfers before using the result.
Adjust your next purchase
Do not automatically repeat the previous order quantity. Account for current stock, sales over the equivalent period last year, seasonality, and planned promotions. Include guaranteed sales under contracts or subscriptions, if any.
Check supply terms before placing an order. If reliable sales data is not yet available, start with a smaller quantity and increase it once you have that data. For each group, record the decision about remaining stock, the employee responsible, and the date of the next review.
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