A hundred dollars you can spend is definitely better than a million dollars that you can’t spend. This is a lesson many business owners need to remember, especially when their shelves are full of unsold inventory that is clogging up capital.

The problem here is when nobody is buying items that take up shelf space but are not being moved around. Sure, those bits of jewelry should be sold for $500 each or that retro stereo set should sell for $250, but those items are worth nothing if absolutely nobody is buying them.

It is for this reason that entrepreneurs must learn how to cut their losses and get rid of their unmoving stock even at a loss. Doing so will free up precious space for selling other hotter items while sending a signal to customers that business is brisk and strong in your establishment. Doing so also orients your businesses’ objectives from “getting rid of excess stock” to “actively meeting customer demand.”

Know what your customers want, ask for what your customers want and get rid of everything else. You’d be surprised at how effective this is during lean economic times. People are tightening their belts and buying only what they need and want – in that order – so make sure you meet that demand.