Moving Stock

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I have noticed this in Kuwait, but a lot of business face this problem when they are trying to move old stock. The way good businesses think is how to get rid of old stock and when it is more useful to discount below cost.

The one thing you notice in Kuwait is that even if something is old they really don’t lower the price because they don’t want to lose a fils on the item. What they don’t take into account is the money they would make from having more stock of a faster or newer item which will make up for the lost. Its annoying when you go buy something old like a game and its still at 20-25KD when its selling for $40-50 online since its release. New sell for more then old and then is something they should take into consideration. That is the same for computer parts, most computer parts move quickly but sometimes there are those which stay for a bit. It applies in different areas but you notice they will always sell for a profit especially with electronics.

A guy who is just trying to enjoy life!

9 Comments

  1. Waleed

    You are absolutely spot on. This is the Marketing mentality in Kuwait. And the thing is they don’t realize that a lot of people now are doing their shopping online. Myself, I order most my gadget from Amazon or similar places with a better price and more variety.

  2. Angel_Of_Deth

    very true, it just kills me that still some shops in Ibn Khaldoun sell some old Palms Zire 71 & 72 and the T3 for 80 KD and 120KD!!! These items are obsolete!!! but since i am a Palm Collector and user, would love to own them one day in my life, and they still kick the ass of a WM5 handheld ;)

  3. it might help to use methods such as JIT (just in time) or lean manufacturing … i think some people just lack the knowledge of how to get rid of stock also some people don’t realize that stock is money that you can’t use -_-

  4. True.. and this is one thing….

    I was at the Ikea in the Avenues… and I wanted to buy something (a set of boxes that comes in two pieces) so you know how Ikea is huge.. I ask the salesguy to check if it was available in stock and he confirmed it, so I walk all the way to the cashier and pay, then to the pick-up desk… and guess what!? They are out of this item, and the funny thing they told me they have only ONE box!! How come when it should come in a set of two!! I was so agitated at this point! What kind of inventory system do they use!!! Now I have to wait in another line to get my money back… the whole process took me 30 minutes (getting in, looking for salesperson, ask him to check availability, checking out, and going to the pick up desk) they asked me can you wait for about 10 more minutes for paperwork! I said NO! LOL I guess the look on my face was clear and they did refund my money quickly! Why would I spend long 40 minutes in Ikea to buy a set of two boxes… here goes your system in Kuwait again LOL

  5. Waleed: That is the thing, there is a depretiation in price that has to go into affect!

    Muh’d M. Mansour: Because I live in Kuwait! hehehe

    Angel_Of_Deth: That is rediculous! They are damn old and they are still pricing them like that! What if they don’t get people who are addicted to these items. Then what do they do!

    Laialy: The problem is that people don’t even make projections on sales, they just bring stock! And that is the problem! They don’t put items forwards!

    Ansam: Wow! That is annoying! I can’t blame you for being short tempered with them!

  6. I know what you mean some people are just so stupid in doing business!! It’s not just in Kuwait!

  7. Nora: yeah, they don’t realize they are better selling it off a bit lower and making more off a new product!

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