Know-How Exchange : Strategy

I believe you are talking about a bargain sale. Yes, you should consider the inventory turn over of the item. If it is not very salable the previous month, you may consider to bargain it. Check the product cost + overhead cost to determine how much discount you are willing to give for that certain item.

Put a bargain only to those products that are not salable. Maybe you can allot a portion of your store to bargain sale items. Put a sign that says: Bargain Corner. Or whatever term you would like to use. The rest of the store still at regular price.

In your business the thing that counts most is the number of turns you get, so by all means get rid of the old merchandise as quickly as you can. That way you'll have the cash to invest in fresh, salable merchandise.

And SharkWriter! is correct. You don't want to make the old merchandise seem like it's dated or remnant or inferior. Just offer it as a "Summer Special" (or whatever).

But get rid of it as quickly as you can so you can put that money to work for you and increase your turns.