Peter Durham, Foremost’s head of membership services and group retail consultant explains the best ways to get rid of left-over stock.
Are many golf shops overstocked?
Yes, instead of factoring in the clearance of residual product into their margins, many pros endeavour to get full price for all their stock, resulting in stores with mixed seasonal themes and old hardware models. This also results in low stock turns and capital tied up in depreciating stock.
What do you recommend?
You need to clear out product at the end of each season; I would recommend that you run three stock clearance events a year.
- Winter end of season sale
- January sale
- End of summer season sale
What is the best way to do this?
You need to create an exciting ‘grab a bargain’ event that will get customers making a special journey. Don’t make the mistake of just having a permanent sale rail in your store or outside your shop as this will have little impact and just detract from your full price items. You need to think like ‘Next’ when it comes to clearing stock.
In my opinion, you have two options:
Option 1 – Cost price clubhouse clearance sale
If done properly, this event will cause a frenzy of activity. Some Foremost members have achieved sales in excess of £10,000 in just one day!
- Run a countdown campaign in your newsletter and club signage saying ‘Ten days to go, Nine days to go’ and so on. Highlight some real bargains.
- On the day of the event, place stock on conference tables with handwritten tickets (priced to clear) or in golf bags and think market stall. Everything must show a saving.
- Have a few high profile, strictly limited bargains that will generate footfall.
- Ask to use the clubhouse CC terminal.
- Create a ‘make me an offer table’ for difficult to clear products.
- Staff up accordingly.
- You will get golfers in shopping mode attending with the intention to spend.
- Clubhouse F&B will benefit.
- Old stock becomes cash!
- Your shop remains intact with only sale stock removed.
- You should still make a small profit as no-one knows your cost price, but don’t be greedy, get rid and move on.
Option 2 – Cost price clearance sale
This is the exactly the same as the clubhouse clearance in that you need to create a big event and a ‘when it’s gone, it’s gone’ sense of urgency. Convert an area of your store into sale mode and run for a specific time period and then revert back to normal. Then run another event when required.
Any other tips for a successful sale?
Yes, just think like a customer. If you don’t get excited about your sale, why should your customers and remember, we all love a bargain!