The End of the Financial Year (EOFY) is a great time for sales and to get rid of dead stock.
More details here.
The clock is ticking right now, so this EOFY presents a window of opportunity that retailers should not miss.
Why Now?
Consider these factors:
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Tax Refunds: People expect tax refunds, providing extra disposable income.
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Accountant Recommendations: Accountants will often advise their clients to make purchases before the end of the financial year to maximise deductions.
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Crucially, for the End Financial Year (EOFY)/ Mid-Year Sales, which have now commenced, is that the ‘Instant Asset Write-off Extension’ for purchases of up to $20,000 is set to end on Sunday, June 30.
Planning Your EOFY Sale
Here's how you can make the most of your EOFY sale:
Assess Your Inventory: Take stock of your inventory, particularly items sitting idle now. These items will serve as attractive loss leaders to draw customers in. Most of us are sitting on a heap of old (dead) stock. It tends to be pretty noticeable this time of year because we are looking at counting it. This stock, if unsold, sits uselessly on the shelf, so tying up cash unless you do something.
Our POS software has an extensive system to help you identify this old stock.
Click here for a training video on the identification of such stock.
As a tip, it's best to work with each department separately.
Instead of discounts, also consider bundles. Use the unsellable item as a discount to sell more sellable items.
Consult Your Suppliers: Reach out to your suppliers for insights and ideas. This is what we are doing now, I am telling them now. You may be able to sell it now or count it later. What would you prefer to do? Also, many of them are now budgeting for the end of the year, and they often need a lot of money now.
Research Competitors: See what other retailers like you do for EOFY sales. This can inspire you. Try to differentiate your offerings.
Crafting Your Strategy
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Discounts: Look for dead stock and consider using it as a loss leader to entice customers. A simple stand in front of the shop with cheap items works well.
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Business Section: Create a business section in your shop that people can review. Post a sign over it stating that everything you buy there may be tax deductible.
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Promote your sale: Some in-store signage will be used to promote your EOFY sale. It would be best if you created a sense of excitement to encourage immediate action.
Conclusion
This EOFY season presents a unique opportunity for retailers to boost sales and clear out excess inventory. You can make the most of this lucrative period by planning your sale. Don't let the EOFY pass you by!
