Companies Can Pay a Heavy Price For Holding on to Inventory

An article appeared recently in the New York Times entitled Retailers Add Politics and Nature to Their Holiday Worry List, written by Stephanie Clifford.  

It quoted John Barbour, CEO of LEAPFROG – a designer, developer and marketer of innovative, technology-based educational toys, books and games as saying…  
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“The penalties for having too much inventory are greater than the penalties for being a little bit short,”

This particular quote got my attention.  Given the title of the article, the presidential election and hurricane Sandy were prominent in an assessment of some of the concerns companies are dealing with in anticipating what sales are going to look like as we approach the Christmas holiday season.  But even as these events are already being touted as influencing sales, there’s that cautionary note regarding excess inventory that just doesn’t go away.

Even as companies get better at forecasting sales and hedging their bets  through pre-orders and reading the sales projection “tea leaves” they more than just occasionally wind up with excess inventory after the sales season – especially after the Christmas selling season which represents “prime time” selling season for retailers in particular.  
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The consequences of forecasting sales errors can be unforgiving.  Companies delayed some product introductions this year more than they did in 2011 with holiday toy shipments, as referenced in the same article, already down by 13 percent.  Again, retailers in particular are not giving themselves a lot of wiggle room.

You need to be wary as well.  Donate product now that’s taking up valuable warehouse space and get an up to twice-cost federal tax deduction.  This can be done quickly, cleanly and with no hassle.  Give us a call at (800)-562-0955.  We’ll answer all of your questions and show you how it’s done.

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