# What is Dead Stock?

What is Dead Stock? Products that haven't sold and aren't expected to sell — inventory that's stuck.

## How it works in practice

Dead stock is 'money asleep.' Any SKU with no sales for 90+ days while still in stock is a dead-stock candidate. Opportunity cost: that same money invested in a selling SKU would generate revenue. Dead stock = zero revenue + ongoing costs.

## Related metrics

- Cash Flow — dead stock hurts cash flow
- Inventory Turnover — dead stock = near-zero turnover
- Demand Forecasting — dead stock = a forecasting error
- Markdown Strategy — the solution to dead stock

## Common misconception

'It's better to hold dead stock than to sell at a loss.' No. $14K of inventory sitting idle is $14K earning nothing. Selling at 50% off (a paper loss) brings back $7K in cash that can be reinvested in fast movers. That's a real opportunity cost.

## How to fix it

Dead stock? (1) Define a dead-stock threshold: 90+ days with no sales, (2) Run a flash sale on dead stock: 20-50% off, (3) Bundle: pair a dead SKU with a fast mover, (4) B-stock/liquidation: wholesale it near cost, (5) Donation: a tax offset.

## Real-world example

Home goods store: $33,000 in dead stock (products unsold for 6+ months). Flash sale at 40% off: $20,000 in revenue. The 'lost' inventory turned into positive cash flow, reinvested in fast movers ← monthly revenue +28%.

## Where to start

Run a dead-stock audit quarterly: export inventory → add a 'days without a sale' column → products over 90 days go on the action list. Act fast — depreciation accelerates between 90-180 days.

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Category: Operations · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/dead-stock