What are the conditions for the emergence of a deficit and surplus of goods?

The deficit can be temporary or permanent. But in any case, its consequences are quite obvious – the company receives less profit. However, not all so simple.
If the deficit is of a permanent protracted nature, then the consequences can be sadder than it seems at first glance:
1. Lack of profit due to too low prices;
2. Direct losses due to lack of sales;
3. Deterioration of the store’s image in the eyes of customers: “There are never the right products here”;
4. Loss of potential and real customers;
5. Emptiness on store shelves, unfilled counters;
6. Growth in sales of competitors who have such a product;
7. Costs due to actions aimed at eliminating the deficit – moving goods on the shelves, urgent search for substitute goods;
8. Wasted money on an advertising campaign or tasting;
9. Stress among employees and, as a result, their demotivation.
Surplus goods. Ways to sell surplus.
But before the necessary steps are taken, it is necessary to understand the reasons for the excess:
1. Unbalanced price (the price is too high for a given market or for a given type of product).
2. Expired or expired. The store sells food products, including perishable goods (for example, fish), or has in its assortment products with a limited shelf life (household chemicals, cosmetics).
3. Errors in sales forecasts. Purchasing goods at random leads to such sad results.
4. Over-purchasing. For example, we sell 30 – 32 bottles of wine per month. But the purchased batch is 24 bottles – this is the minimum packaging from the supplier’s warehouse. We cannot buy less, and we have to buy more – 2 lots of 24 bottles each to meet the demand. If we do not stimulate the demand for this wine, then very soon we will find ourselves in a situation of excess production.
5. Commodity cannibalism (the appearance of one product displaces the sales of another).
6. Changes in consumer fashion or taste.
7. Legislative acts (prohibition on the sale of products). The ban on the sale of poultry meat in some countries due to the threat of the bird flu epidemic has led to the fact that millions of tons of chicken meat were transferred to surplus, and then to substandard goods. The introduction of censorship on beer advertising led to a decline in sales.
8. Incompleteness of goods, erroneous proportions when ordering complete goods. As a result, there is a deficit for some goods, and a surplus for others.

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