How to Have a Going Out of Business Sale
A Going Out of Business sale provides an opportunity to reduce stale merchandise before you close your doors. To make your sale as successful as possible, visit other similar sales before you conduct your own event. Notice how the manager has organized the store, and observe the value of building and interior signage. Examine the store's ads for elements you want to adopt in your own Going Out of Business sale advertising.
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Things You'll Need
- Schedule of price reductions for sale
- Advertising budget for sale
- Written copies of your state's Going Out of Business sale laws
- Merchandise and inventory records
- Going Out of Business sale banners
- In-store signage
- Sale fliers for customers
- Ad rates and copy for newspaper ads
- Merchandise information for liquidator (if applicable)
- Merchandise information for donation (if applicable)
Instructions
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Mark the date to close your doors. Work backwards from that date to plan a Going Out of Business Sale. Remember that business-ending sales often have several stages of price reductions. Examine your calendar, and choose dates that allow for at least a week's duration at each price reduction level. Plan an advertising budget that allows for consistent advertising for the entire time period.
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Investigate Going Out of Business Sale laws. Although many businesses hold legitimate store-closing sales, other less forthright store owners have periodically conducted these sales while remaining in business. Other retailers have shuttled merchandise from their other store locations, or have otherwise replenished their store shelves during the sale.
As a result, some states have enacted laws that strictly limit store owners' options in conducting Going Out of Business sales. For example, the state of Missouri requires that a store owner register his Going Out of Business event before the sale begins. Consult with your State Attorney General's office to determine your state's laws.
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Assemble all your merchandise. Take stock of your current inventory, and consider adding your off-season or surplus inventory to the sale. Keep an accurate valuation of all merchandise, in case you want to market unsold inventory to a liquidator.
Before you position your extra merchandise on the sales floor, consult with your state Attorney General's Office for Going Out of Business merchandise laws. Some states have laws that strictly prohibit new merchandise from being added to a Going Out of Business sale.
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Purchase banners and create signage. Buy colorful Going Out of Business banners to draw customers into your store. Local sign makers can easily create these banners, and can include your store logo and graphics. Alternatively, you can order pre-made or custom banners from an online supplier.
In addition to storefront banners, create in-store signs that accurately reflect your merchandise and sale terms. On a four-way rack with multiple merchandise and discount categories, for example, clearly worded signage will reduce customer confusion.
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Send sale fliers to your customers. Dust off your customer list, and create a snazzy Going Out of Business Sale flier. State the dates, sale terms and price percentages. Clearly describe the merchandise to be sold. In addition to accurately promoting the sale, you are also lending credibility to your business.
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Advertise your bargain prices. Place sale ads in regional newspapers. Select a newspaper section that matches your customer base. For example, a sporting goods store might place ads in the Sports Section. A home décor store might advertise in the Home Section or even in a spring home improvement insert.
Work with a newspaper graphic artist to create a colorful ad that commands attention. Use this opportunity to attract customers and reduce your merchandise inventory.
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Complete your store-closing sale. Anticipate a good turnout for the sale, and schedule enough staff to adequately serve the influx of customers. Besides cashiers, include general customer service associates.
When the sale is completed, evaluate your remaining inventory. Contact a merchandise liquidator to purchase or auction the unsold items.
Another option is to donate the merchandise to a nonprofit store and receive a receipt for possible tax benefits. Contact your tax professional to discuss your situation first.
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References
Resources
- Photo Credit Candles image by Tasha from Fotolia.com
