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How to Price Excess and Closeout Inventory

Short answerStart from your floor, not from what you paid: the lowest total you would accept, considering what it costs to keep holding the goods. Then price from the buyer's side. A buyer works backward from what they can resell the goods for, minus freight, handling, unsellable units and their margin. Condition, brand, how complete the manifest is, lot size and location all move that number. Leave room to negotiate and consider a lower price per unit for larger orders.

Why pricing excess inventory is different

What you paid for the goods no longer sets their value. Once stock is excess, the price is whatever a buyer can still make money on, and that is usually well below your original cost. Pricing from cost tends to produce asks that sit unanswered.

At the same time, pricing too low leaves money behind and can undercut your regular channels. The goal is a price that clears the lot within your time frame while recovering as much as the market allows.

Ways to structure the price

Pick the structure that matches how your buyers think about the lot.

  • Price per unit. Clear for buyers who resell by the item and easy to compare across lots. Works best when the lot is one product or a few.
  • Price per lot. One number for the whole lot. Simple for mixed lots and returns, where per-unit prices would mislead. Buyers will still calculate the per-unit cost themselves.
  • Tiered by quantity. A lower unit price above a quantity threshold rewards buyers who take more and helps clear the lot in fewer deals.
  • Price relative to retail. Many buyers quote closeouts as a share of retail. If you use retail as a reference, say where the retail price comes from and when it was checked.

How Lotflows helps

Lotflows never sets or changes your price. It gives you a clear place to state it, along with the terms buyers price against.

  • Set a price, quantity, MOQ and lead time for each product before you publish; nothing is visible until you do.
  • Share links show visitors price ranges rather than your exact prices, so you can circulate a lot widely and quote exact numbers in the conversation.
  • Buyers inquire about a specific lot and you negotiate directly, so you can adjust for each buyer's quantity and logistics.
  • Lotflows takes no sales commission, so the price you agree is the price you keep.

List inventory free Pricing

Step by step

  1. Work out your floor. Add up what the goods cost you each month you keep them: storage, labor, insurance and the cash tied up. The floor is the lowest total that beats holding on.
  2. Estimate the buyer's resale value. What can a reseller realistically sell these products for, in this condition? Check current listings for the same items if they have UPCs or ASINs.
  3. Subtract the buyer's costs. Freight from your location, handling, units that turn out unsellable, and the margin a buyer needs to bother. What is left is roughly what a buyer can pay.
  4. Adjust for condition and completeness. New in package, open box and untested returns are priced very differently. An accurate manifest and photos reduce the discount buyers apply for uncertainty.
  5. Set the ask with negotiating room. Ask somewhat above the number you expect to accept, and decide in advance what you would offer for a larger quantity or a faster pickup.
  6. Revisit on a schedule. If there is no serious interest after a set period, lower the price or change the lot size rather than waiting.

Looking at the buyer side? Browse inventory lots on Lotflows or read how buying works.

Frequently asked questions

What percentage of retail should I ask for excess inventory?
There is no fixed percentage; it depends on brand, condition, category, lot size and location. Estimate what a buyer can resell the goods for, subtract their costs and margin, and compare that with your floor.
Should I price customer returns differently from overstock?
Yes. Overstock is usually new and complete; returns can include opened, damaged or incomplete units. Say whether returns are tested or untested, and expect buyers to discount for that.
Does a minimum order quantity affect price?
It does. A high MOQ limits you to larger buyers who expect a lower unit price; a lower MOQ lets smaller buyers in, who often pay more per unit.
Does Lotflows set or suggest my price?
No. You set the price and terms. Lotflows does not price, negotiate or change your terms.

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