Year end concentrates attention on inventory: the count is coming, the numbers are being finalised, and someone has noticed the racks full of goods that haven't moved. So the clearance project starts in the first week of December — which is the single worst moment to start it.
Why December Is the Worst Time
Several things stack up at once:
- Everyone else is doing it too. Buyer capacity, warehouse space, and freight are all in demand simultaneously.
- Freight tightens. Peak retail season plus holiday shutdowns compress the available scheduling window considerably.
- Approvals slow. The people who sign off are on holiday during exactly the weeks you need them.
- Your leverage drops. A visible deadline you can't move is not a strong negotiating position.
A December clearance isn't a plan. It's the same plan everyone else has, executed in the two weeks when nothing can be scheduled.
A Timeline That Works
Working backward from 31 December:
- September: identify what's genuinely dead versus merely slow. Pull aging reports and be honest about what isn't coming back.
- Early October: get market numbers. Send lists, get offers, understand what the inventory is actually worth — see how to value excess inventory.
- Late October: secure internal approval, with the carrying-cost comparison attached rather than the book-value one.
- November: execute. Freight is still schedulable and buyer capacity is available.
- Early December: clean up stragglers, with the bulk already gone.
That puts you ahead of the rush at every stage, and it means the count covers a warehouse that reflects the business you actually have.
Deciding What to Clear
The useful distinction is dead versus slow, and it's worth being rigorous:
- Dead: no meaningful movement in twelve months, superseded, out of season with no next season, or tied to a discontinued line. Clear it.
- Slow: still current, still selling, just below forecast. Usually keep it, unless space is the binding constraint.
- Seasonal: depends entirely on the category. Anything year-stamped should go now; undated seasonal goods may be worth holding — run the storage math first.
Getting It Done Before the Count
Two practical points if the physical count is the real driver:
First, an arm's-length sale gives you a documented realised value, which is a cleaner basis than an internal write-down estimate. Your accountant will generally prefer evidence over estimation — see write off or sell.
Second, count the labor. Counting inventory you're about to dispose of is pure waste. Clearing before the count reduces the count itself, and for a warehouse full of slow-moving SKUs that's a meaningful saving in a period when your team has other demands.
If it's already December and you're reading this: it's still worth asking. Short timelines cost more to staff and that affects the offer, but the comparison is against carrying the goods into another year, and that's usually worse. Send us the list with your deadline.
Frequently asked questions
When should I start a year-end inventory clearance?
September for a comfortable run at 31 December. Identify in September, get market numbers in early October, approve late October, execute in November. That keeps you ahead of the rush at every stage.
Is it too late if it's already December?
Not too late to ask, though scheduling is tighter and short-notice removal costs more to staff, which affects the offer. The comparison is against carrying the goods into another year, which is usually worse.
How do I decide what to clear?
Separate genuinely dead inventory from merely slow. The clarifying test: if you were purchasing today, with today's information, would you buy this? If not, you're holding it on sunk-cost reasoning.
Does clearing before the count help?
Yes, in two ways. You count less, which saves real labor in a busy period, and an arm's-length sale gives you documented realised value rather than an internal estimate.