Paying for Storage of Unsold Stock? When to Sell Instead

Storage looks cheap one month at a time, but old stock pays no return. Every month adds rent, handling, insurance and interest on the money tied up, and the stock usually loses value while it waits.

Short answer

Work out the total you pay each month to hold the stock. Multiply by the months you expect to wait. If that total is close to the discount a buyer is asking for, sell now.

A simple calculation

Monthly storage or rent for the space the stock uses
Monthly labour and handling
Insurance
Interest: the stock value multiplied by your cost of money, divided by twelve
Add these, then multiply by the number of months you expect it to take to sell

Why waiting rarely helps

Fashion, electronics and anything with a model change lose value every season
Food, cosmetics and chemicals approach expiry
Packaging gets damaged and stock gets dusty or damp
Buyers pay less for stock that has been sitting for a long time

Options

Sell the whole lot to one buyer at a lower price
Split into smaller lots to reach more buyers
Offer part to a liquidator and keep the faster movers
Sell some as scrap if it can no longer be sold as a product

How ClearLot helps

If you are paying to store stock that is not moving, list it on ClearLot as a lot so bulk buyers can find it. ClearLot is a free-to-list stock board in India. Our team checks every lot before it goes on the board, and your name, business name and phone number are not shown to visitors. When a buyer is interested, we speak to them first and then connect you. ClearLot does not buy, hold, move, store or recycle anything, and it is not a party to the deal: price, payment and dispatch are agreed between you and the buyer.

What ClearLot does not do

ClearLot does not offer storage or warehousing. It helps you sell the stock so you can stop paying to store it.

Frequently asked questions

How much does it really cost to store unsold stock?

Add monthly storage, handling, insurance and interest on the money tied up in the stock, then multiply by the months you expect to wait. Compare that with the discount a buyer is asking for.

When should I sell stock instead of storing it?

When the total holding cost over the time you expect to wait is close to or more than the discount you would accept now, or when the stock loses value with time.

Is selling at a loss better than storing?

Often. Cash released now can be used elsewhere, and old stock keeps losing value and taking up space.

Does ClearLot provide storage?

No. ClearLot is a stock board that introduces sellers and buyers. It does not store or hold stock.

Read next: How to sell dead stock in India. Or see what ClearLot is.

See stock in this area on the stock board.

Paying for storage of unsold stock: when to sell instead