Frequently asked questions · Stock of unique pieces

What is dead stock?

Pieces that have stood still for a long time — holding the money you need in order to buy.

Stock that has stood still for a long time: pieces that are not selling and are holding your money meanwhile. Not always bad — some rare pieces simply take a long time to find a buyer. Always worth knowing about, because in a second-hand business your working capital sits entirely on your shelves.

Second-hand shops suffer from it more than others, for a good reason: nearly every item is unique, so demand is harder to predict. What clears in two weeks at one shop stands for two years at another.

What clears at one shop stands at another

At one shop2 weeks

At another2 years

Drawn to the same scale.

Marking down straight away is rarely the first answer. Look first at why a piece is not selling: is it badly placed, are the photos missing, or is the price simply higher than the market gives today.

Look first, mark down later

  1. Is it badly placed?
  2. Are the photos missing?
  3. Is the price higher than the market gives today?

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Also worth knowing

What do you do with a piece that will not sell?

Work out why it is not selling before you mark it down. Is it at the back of the shop, are there no good photos, is it not online, or is the price genuinely higher than the market gives today? Only once the first three are right is the price an honest answer.

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How do you calculate stock turnover?

Divide the purchase value of what you sold in a period by the average purchase value of your stock over that same period. Use purchase prices on both sides: dividing selling prices by stock valued at cost makes your turnover artificially high. Calculating once a quarter is enough for most businesses.

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Every piece with its purchase price, photo and origin in one place

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