Dead Stock is Stealing Your Cash: How to Free Up Working Capital in 90 Days

Your shelves are full. Your bank account is empty.

How does that happen?

You're sitting on $200,000 in inventory. But half of it hasn't sold in 90 days. And you just had to decline a great bulk-buy opportunity because you're "cash poor."

Welcome to the dead stock trap.

What Dead Stock Actually Costs You

It's not just unsold products taking up shelf space. It's:

The cash you can't use: $100,000 tied up in products nobody wants = $100,000 you can't invest in products people actually buy

The storage you're paying for: At 20% annual carrying cost, that $100,000 costs you $20,000/year just to keep

The opportunity you're missing: Your competitor just bought a truckload of bestsellers at 15% off. You couldn't because your money is trapped in garden gnomes from 2023.

The desperation markdown: Six months from now, you'll sell it for 70% off and recover $30,000 on your $100,000 investment.

Total loss: $70,000 plus carrying costs

How It Sneaks Up On You

Dead stock doesn't happen overnight. It compounds slowly:

Month 1: "This is a great trend, let's stock up"
Month 2: "Sales are slower than expected, but give it time"
Month 3: "It'll pick up during the holidays"
Month 6: "Well, we're stuck with it now"
Month 12: "70% off clearance event"

By the time you notice, you've been paying to store merchandise nobody wants for months.

The Real Numbers

Average retailer carrying $500K in inventory:

• 30-40% is excess or dead stock: $150,000-$200,000

• Annual carrying cost at 20%: $30,000-$40,000

• Average recovery on clearance: 30-40% of cost

• Annual loss from dead stock: $90,000-$120,000

That's not a rounding error. That's real cash disappearing into your shelves.

The Manual Tracking Problem

Most retailers try to track this in spreadsheets:

"Let me pull a report of what hasn't sold in 90 days..."

Three hours later, you have a list. But:

• No idea which items are truly dead vs. just seasonal

• No visibility into days-to-sell for clearing inventory

• No calculation of optimal markdown percentages

• No prevention plan for next quarter

And next month, you're doing it all over again.

Real Example: Regional Home Goods Chain

The discovery:

• Total inventory: $1.2 million

• Dead stock (90+ days no sale): $602,000

• Cash trapped: Over 50% of working capital

The problem:

• Wanted to open 4 new locations

• Needed $600K for new store inventory

• Couldn't fund expansion—money was on the shelves

After AI optimization:

• Identified exact dead stock and slow movers

• Created 90-day clearance plan

• Freed up: $416,000 in working capital

• Result: Funded 4 new stores without additional financing

What Early Detection Actually Looks Like

Imagine knowing:

Week 4: "This product is trending 40% below forecast"
Action: Light promotion, recover 85% of cost

Instead of:

Month 6: "We're sitting on $50,000 of this stuff"
Action: Desperate 70% markdown, recover 30% of cost

Difference: $27,500 per product

The 90-Day Working Capital Recovery Plan

Month 1: Identify

• AI scans all SKUs for sales velocity

• Flags dead stock (90+ days no sale)

• Identifies slow movers (trending toward dead)

• Calculates exact cash tied up

Month 2: Optimize

• Stops reorders on dead items

• Reduces orders on slow movers

• Increases stock on profitable items

• Creates markdown strategy

Month 3: Execute

• Targeted clearance events

• Optimal discount percentages

• Natural depletion on marginal items

• Cash starts flowing back

Result: 25-35% working capital freed in 90 days

The Prevention System

Better than recovering cash? Not trapping it in the first place.

AI continuously monitors:

• Sales velocity changes

• Trend shifts

• Seasonal patterns

• Category performance

You get alerts:

• 60 days before items become dead stock

• When to stop reordering

• When to run light promotions

• What NOT to buy in bulk

Outcome: Stop creating dead stock problems

What Good Looks Like

Before:

• $600,000 in inventory

• 35% dead or slow-moving

• $210,000 trapped cash

• Can't fund growth opportunities

After:

• $400,000 in inventory (optimized)

• 5% dead or slow-moving

• $200,000 freed working capital

• Growth funded from recovered cash

Same service level. Better cash flow.

The Fix

Stop letting dead inventory steal your future.

U2xAI identifies dead stock automatically, calculates optimal markdown strategies, and prevents future cash traps before they happen.

Results in 90 days:

• Complete visibility into dead stock

• Optimal clearance recommendations

• Working capital recovery plan

• Prevention system to stop repeat problems

The Bottom Line

You're not cash poor.

Your cash is just trapped on shelves in products nobody wants.

Free it up. In 90 days.

Then use it to fund the opportunities you've been missing.

Ready to free up your working capital?