Need of clearing excess chemical stock - WorldOfChemicals

Why does a chemical company clear excess chemicals?

Category : General Chemicals
Published by : Data Research Analyst, Worldofchemicals.com

 

Stock clearance is a process of liquidating chemical inventory and is executed when the business is not able to sell off their inventory. The non-moving inventories which are piled up in the warehouse cost the storage as well as become a reason to incur a loss. A company will most often go in for a non-profit making scheme when clearing stock and seek a wider strategic advantage. It can be in the technique of clearing the stocks for storage space, releasing supervision of materials and equipment, and ending technical support for a product. 

 

Benefits of Stock Clearance for a Chemical Business 

 

1. Reduce Inventory 

Clearance sales aids to reduce excess inventory in-store or products online. Customers purchasing trend varies rapidly and its outcomes in excess inventory will cause a clutters in your warehouse. Maximizing the shelf space for chemicals in-demand items assist to maintain sales levels and profits. 

2. Increase in Sales

Promotions of products like clearance sales augment customers, particularly value-based customers. The less priced goods might boost the reach to the customers that can afford to purchase products or can be offered as an attractive purchasing alternative to existing customers.

 

3. Increased Profit

The expenditure or outflow from reducing inventory will add toward increasing the profit level. Though companies incur losses in the beginning, the lower price may attract more customers and may augment the demand in the industry. On the other hand, companies can free up their stock to potential customers and gain space for new inventories. 

 

4. Selling the Stock at a Discounted Price

Companies usually sell off the unsold stock at a discounted price to attract customers and generate cash out of it. Companies search amongst various buyers, who are actually probing for the ready product, to purchase it from the buyers. Thus gaining a great return on investment from the unsold stock.

5. Materials Maintenance 

If you are renting another space for storage or a larger warehouse because of storing the large inventory, it’s time to rethink and find a solution to clear the excess stock. Apart from rent, it is important to, track and verify the inventory. The possibility of theft, damage, or any uncertain situations may incur which cannot be recovered by insurance. Therefore maintain the materials become the biggest challenge in the chemical industry. Sell off the stock to the potential buyers avoid these situations rather incurring the loss. 

Companies need the right channel and a specialised stock clearance network to sell their stock. Worldofchemicals is the right platform to buy and sell excess chemical stock and used chemical equipment. We are an intermediate portal to sell the stock to the potential prospects.