Dead Stock
Stock of products that no longer sell for a long time and immobilize capital.
Dead stock refers to products that have not been sold for a defined period (usually 6 to 12 months) and risk never being sold. They tie up cash, occupy space, and may become obsolete.
Identification: Dead stock = Products without sales for X months. The threshold depends on your sector: 3 months for seasonal fashion, 12 months for furniture. It is measured in COGS value and as a percentage of total stock.
Actions to liquidate dead stock include: aggressive sales, bundles with best-sellers, clearance sales, tax destruction. Better to recover 30% of the price than 0%.
Fullmetrix automatically detects your dead stock by last sale age and calculates the immobilized value, to trigger targeted liquidation actions.
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