Some entrepreneurs make the decision to liquidate the company, regardless of the reason they have to do, their main objective is to sell the goods quickly to evacuate and continue with their new plans.
When this happens, they start with the basic strategy of "product offerings" in order to attract customers, and quickly get rid of the merchandise. If it comes to small businesses, it can be a very good strategy, but what happens when you have a large stock of products? It's not the same thing right? It is easier to sell 10 items at a low price, 100.
Many manufacturers have had to reduce their production due to the fall in consumption (which is fortunately rebounding into positive numbers) but still, it continues to generate output Stock difficult for these companies.
This situation affects the costs of storage and destruction, as sometimes become a real problem for many manufacturers, who encounter serious difficulties poderles output, reaching malvenderlos. Usually the reasons for this generation stock, have to do with sales targets unreached, packaging changes, new regulations, dates, etc.
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