Should i discount slow-moving inventory to cut holding costs?

[Abigail.R]

I’m trying to figure out how to handle the cost of storing inventory that’s just sitting in my warehouse. It’s eating into my margins more than I expected, and I’m not sure if I should be discounting it heavily to clear space or if there’s a better way to manage these holding costs going forward.

[Nicholas.A]

Been there. We slashed prices on slow movers and watched margins drop, but it opened space. We ran three-week flash sales and bundled slow items with fast sellers. The warehouse still eats a chunk every month, especially when storage fees spike after peak season. That stock in the back finally moved, but it cost us.

[Ella_G]

Last time I tried to quantify it, we calculated carrying cost as the storage rate plus obsolescence. We tagged aging SKUs and set a cutoff: anything over 180 days got a discount or returned. It helped to see a monthly number, not just risk. The tricky part was forecasting demand to avoid repeating the same mistake.

[Luna.W]

We tried to reduce holding by consolidating vendors and using consigned stock for slow items. Not universal, but for certain categories space saved more value than taking a hit on margins. Also we adjusted floor plans to rotate stock faster, even if it meant temporary picking complexity.

[MichaelT]

I keep wondering if we’re chasing the wrong problem. Maybe the real issue isn’t the hold cost but forecast accuracy. When we overordered to hedge against gaps, the cost of sitting exploded. Is better forecasting the lever here, or do we need a policy change around obsolescence?