Stock Clearance goods are good products?

Stock Clearance goods are good products?

Stock clearance is an activity by a company where ownership of products and materials move on to another legal entity. These products and materials in stock clearance will not form the basis of a company's key activities. As such they are often end of line stock, surplus stock, returned stock or bankrupt stock.

Most companies from time to time end up with surplus goods, liquidated goods and bankrupt stock. This can be a costly problem. Stock Clearance is a process by which companies free up valuable money and space. Reasons Leading to Stock Clearance Cancelled orders or late deliveries Closing Down of business Overproduction Returns Frustrated Stock (When importer or exporter decides to abandon the stock and leave it with the shipping company)

When customers are told that the reason for a price reduction is a stock clearance, they find this less attractive than other explanations such as a volume discount. This is because they suspect that the stock clearance indicates that the products are of poor quality.