Small retailers should be alert for out-of-date stock

14/6/07
Small Business Minister Margaret Quirk today advised small business retailers to be mindful of stock which had reached its use-by-date, particularly when stocktaking at the end of the financial year.
Ms Quirk said retailers would be wise to have a clearance sale of stock nearing its use-by-date, to ensure that there would be no write-downs when stocktake time came around on June 30.
"Clearing these goods at a discount means there will be at least some return on the purchase price, as opposed to writing them off for little or no return," she said.
The Minister also warned prospective retailers considering buying a business to be particularly careful to ensure the stock they purchased with the business was of a saleable quality.
"We often hear from new business owners who find they have paid good money for stock which has passed, or nearly passed, its use-by-date or is otherwise obsolete," she said.
"This can result in the loss of many thousands of dollars which cannot be recouped.
"Due diligence is an integral part of buying a business and agreeing the value of stock being purchased with the business is particularly important."
Minister's office - 9213 7000