Glossary
Dead stock
Definition
Inventory that has not sold for long enough that it is unlikely to sell at full price, tying up cash and storage.
Dead stock is a cash problem disguised as a warehouse problem. The money is already spent; the decision is only how much of it to recover and how quickly.
Track stock age by SKU rather than judging by feel. The right time to discount is usually earlier than it feels, because storage costs continue and the resale value does not improve with time.