How to Run a Going Out of Business Sale
In the volatile business world, you may find that your company is no longer turning a profit. If you decide that you need to close your store, you'll have to decide how to dispose of your inventory quickly. Before closing your doors forever, you might hold a going-out-of-business sale to salvage some return on the merchandise you still have.
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Instructions
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Check with your state's attorney general before conducting a going-out-of-business sale. Some states, such as Missouri, require a business to notify the attorney general's office about a going-out-of-business sale at least 10 days before the sale begins.
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Discount your inventory a small percentage to start. When you hold a going-out-of-business sale, you'll want to start by slashing prices 10 percent to 20 percent. As your final days approach, you increase the discount to as much as 70 percent.
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Make all sales final. To dispose of as much of your inventory as possible, adjust your store's policy to not accept returns or give refunds. Post signs that clearly state this policy.
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Consider hiring a liquidation company after you hold your going-out-of-business sale. For a fee or commission, liquidation companies are expert at selling your leftover merchandise for the best possible return. Some liquidators will buy all of your leftover inventory and resell it.
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Tips & Warnings
Some companies mark up prices before holding a going-out-of-business sale, allowing them to advertise higher discounts.
