Your warehouse is where all of your business stock is delivered to, kept safe and secure, and then packaged up and shipped out when someone orders a shipment from the website. It might be a place that more than one business uses, it might be a place where you like to run the bulk of your operations from – either way, it’s integral to your company and the money it makes.
But sometimes, a warehouse can start to overflow, and run out of space. And when that happens, we get a bit stuck with what to do next; there’s a lot of options, and we always want to choose the one that’ll obtain us the best return. We ask ourselves: can we afford to rent another warehouse? Can we shift some of the stock with a flash sale? And will there be any costly consequences of these decisions?
So let’s think about what you can do next, to make sure you can make some space in your inventory without needing to make a risky sacrifice.
Clear Out Some Stock
You don’t have to throw anything away, of course, but sometimes it’s a lot easier to just be rid of stock that won’t make you any money. Compare the potential profit of it to your best sellers, or the projections of your new product – are there any considerable benefits to holding on? Or are you just wasting money in paying for the storage? If you can’t get a sale going, or only sell half of your left over stock during one, this might be your next option.
But if you know a sale will work, and you have plenty of time to hold one, as we mentioned above, it’s the fastest way to make some space in your warehouse. You know, customers love a sale, both in and out of the sector you work in, and it’ll definitely make some waves of interest.
Conduct a 50% off sale at least, to make sure there’s plenty of reason for people to be interested in what needs to go, and to make sure you’re making a return of at least half of your original product.
Build an Extension
If you’ve got some room on the commercial land, and you’ve got a healthy budget to work with, adding an extension to your warehouse will definitely make some space. It’ll also add a bit more value to your business, with an addition that turns your assets into something considerable!
A warehouse extension might seem quite costly at first, but there’s a lot of benefits to investing in steel building kits. Above all else, you’ll know you’ve got overflow space if your company ever runs into a stock issue like this again.
Making some space in a warehouse is going to take some thinking. Take your annual profits and costs margin, and work out what’s costing you the most. Is it your current storage model? Would cutting your losses be more beneficial than it seems for you?