At least you’ll get some cash back from your investment.
But these infrequent sales cannot come close to economically justifying maintaining all of the products that should be removed. Compare it to shares of stock you may purchase in a company. No matter what it’s worth now, your money’s still gone.The securities have “paper” value, but no real monetary value until they are sold and turned back into cash.Inventory slated for liquidation can be compared to shares of stock you own in a company headed for bankruptcy.When you first bought the stock, you thought it was a good investment.
But market conditions, or other factors, changed the situation.
The longer you hold onto the security, the less it is worth.
Selling the shares of stock for less money than you paid for them may be your best alternative.
In the movie , Michael Douglas’ character, Gordon Gecko, said, “Don’t get emotional about stock, it clouds your judgment.” He was referring to securities.
The same advice applies to the material in your warehouse. The goal of inventory liquidation is to dispose of unwanted inventory at the best possible price or the least possible expense. They’re presented in the general order of desirability: Transfer the excess stock to another company location where the inventory is needed.
A product may be “dead” in one branch, but still active in another location.