What should be done with unsold merchandise at the end of a sales period?

When evaluating what should be done with unsold merchandise at the end of a sales period, the most effective course of action is to assess the items and decide whether to implement a discount, donate them, or arrange for their return. This approach is practical for several reasons.

First, it allows for an analysis of the items that did not sell. Understanding why certain products remained unsold can inform future purchasing and inventory decisions. Second, applying discounts can help clear out inventory, making room for new items and potentially enticing customers who may be more willing to buy at reduced prices. Donating items can also positively impact the ship's reputation and relationships within the community and can offer a tax benefit, depending on the situation. Finally, returning unsold items to suppliers, when possible, can allow for cost recovery.

Other strategies, such as keeping unsold items unchanged for the next sales period or disposing of them outright, may not be as efficient or beneficial. Such actions can lead to unnecessary losses or limit future sales opportunities, which is why evaluating the best course is essential.