You probably know your rent. You know your payroll. You know your distributor invoices. But most owners don’t calculate the real cost of carrying dead inventory.
Here’s the truth:
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Every square foot of shelf space has a dollar value. If it’s filled with slow movers, you’re burning money.
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Dead stock ties up cash flow. That’s money you can’t reinvest into proven sellers.
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Old inventory makes your shop look stale. Customers notice the same products sitting month after month.
Inventory discipline is one of the biggest separators between smoke shops that thrive and shops that limp along.
Step 1: Define What Counts as “Dead”
Set clear rules, not feelings. My recommendation:
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Slow‑Moving: If it hasn’t sold at least 1 unit in 90 days, flag it.
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Dead: If it hasn’t sold in 180 days, it’s done.
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Rotten: Anything expired, leaking, or damaged—trash it immediately.
No excuses. No “but maybe it’ll come back in style.” If it’s not moving, it’s dead weight.
Step 2: Track Your Sell‑Through
Don’t just rely on your gut. Your POS should be spitting out reports. If you don’t have that, use a simple spreadsheet and log weekly sales by SKU.
Key metric: Sell‑through rate = Units sold ÷ Units on hand.
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High = Keep stocked.
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Medium = Watch closely.
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Low = Discount or ditch.
If you’re not tracking, you’re just guessing. And guessing is what kills shops.
Step 3: Create an Exit Plan for Dead Stock
Once you’ve identified slow movers, don’t let them rot. Move them out. You’ve got four real options:
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Discount Aggressively – Mark it 50% off. Stack it near checkout. Make it a “buy one, get one” promo. Get your cash back fast.
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Bundle It – Pair it with a hot seller. “Buy this vape, get a free CBD gummy pack.”
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Vendor Buyback – Push back on your distributors. Many will take returns or swaps if you ask firmly.
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Write It Off – If it’s truly worthless, take the tax write‑off and clear the space.
Remember: empty shelf space is better than dead shelf space.
Step 4: Stop Buying Like an Amateur
Dead stock isn’t just bad luck—it’s usually your buying habits.
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Don’t let reps dictate your order. Their job is to move product, not protect your margin.
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Test new items in small quantities before committing.
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Only reorder once something has proven sell‑through.
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Separate needs vs. wants. Just because you like a product doesn’t mean customers will.
Treat your purchasing like an investor. Every dollar you spend on stock should have an expected return.
Step 5: Run a Quarterly “Purge Week”
Put it on the calendar. Every quarter, do a full shelf audit:
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Scan every SKU.
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Flag the slow movers.
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Decide their fate immediately (discount, bundle, return, trash).
Don’t delay. Don’t debate. Purge week keeps your store lean, fresh, and profitable.
The Final Word
Dead inventory is cancer. It eats your space, your cash, and your momentum. The only cure is discipline. Track sell‑through. Define clear rules. Purge relentlessly.
If you’re serious about growth, you can’t afford to be a hoarder. Inventory is oxygen in retail. Keep it flowing or your business suffocates.
Call to Action
If you want more straight‑up, no‑BS tactics that actually move the needle in your smoke shop, hit ChadWadeTV.com. I drop guides, resources, and tools that’ll save you money and grow your business. Bookmark it, because this is where the real playbook lives.