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5 strategies to eliminate dead stock in your pharmacy

There could be a variety of reasons why you have dead or slow moving stock in your pharmacy. Whatever the reason, you know that it is bad for business. It doesn’t just eat up your storage and shelf space, it eats into your profit too. However, with the power of Minfos at your fingertips, you have all the tools you need to help.

 

Identify dead stock and slow movers

The first step is to identify any dead stock and slow movers in your pharmacy.

 

In Minfos, you can quickly run these two reports to help you identify these problem products:

  • Dead Stock Report lists products that haven’t been sold over a timeframe specified by you (e.g. 1 year).
  • Worst Sellers Report lists your slow moving items and helps identify underperforming products.

 

Now you have a list of dead stock and slow movers, let’s take a look at 5 strategies you can quickly implement to help you get rid of these problem products.

 

1. Strategic positioning

Location could be the problem.

 

Consider relocating the slow moving items to a more visible area:

  • To front of store, by tills or other high traffic area and use bright signage to attract attention.
  • Move items closer to complementary products. Buyers often choose items that go together.

 

2. Leverage your staff

Get your staff involved.

 

This is key to helping you move slow moving products:

  • Provide training (if that is the problem).
  • Offer staff incentives to sell (e.g. cash, voucher, etc).

 

3. Discounts

Try incremental discounting or product promotions.

 

In Minfos, you can gradually apply a discount to a slow mover – try 5% to start and then you can increase to 8% or even 10% as you see fit.

 

4. Bundled products

If discounts don’t work, consider that the product may not sell on its own. Offer discounted bundles to make the slow moving products more attractive.

 

Here are 4 bundle ideas:

  • Same slow combo: Offer two or more of the same slow mover.
  • Mix of slow product combo: Combine different slow movers together.
  • Fast seller combo: Pair slow mover(s) with a fast selling item.
  • High margin combo: Pair slow moving product(s) with a high margin item.
  • Related combo: Pair a slow mover with a complimentary product.

 

Bargain hunters are more inclined to make the purchase when they think they are getting a good deal. As for you, this is a great way to sell multiple products in a single sale and still maintain your profit margin.

 

Pro tip: Don’t forget to drop a pop-up note at the Till to remind your Sales Clerk to share the promotion with the customer as they are ringing up the sale.

 

5. Last resort

If it just won’t sell, give it away. Turn the dead stock into a brand and relationship building opportunity.

 

Here are four ideas:

  • Deal: Set a spend amount (e.g. $50) and give away the slow mover (individually or in a pack) for free
  • Gift: At the end of a sale, delight your customer by giving the slower mover for free
  • Reward: At the end of the sale, give the slow mover to your loyalty customers
  • Loyalty: Offer the slow mover as a freebie for new loyalty sign-ups

Pro tip: Make sure you have a sign outside your pharmacy, promoting your freebie.

 

Wrap up

A part of your product assessment should be to honestly assess the performance of each of your lines. Slow lines that are difficult to sell should perhaps be removed from your future orders and replaced with better suited items. To assist you in this decision-making process, use Minfos Order Generation to prevent over ordering of slow movers or dead stock in the future.

 

Looking to effectively manage your inventory? Minfos software enables you to manage every aspect of your pharmacy – from dispense to retail. Let us show you a demo.

 

All advice provided is general in nature and is not intended as legal advice.