 |
The difference between overrun and overstock
Within the closeouts industry there are a lot of terms that are often very similar and clash with one another, and many times some of the terms are even interchangeable. Some people may be confused by the terms and unsure what their particular business is dealing with.
When people use the term overrun, they are generally referring to an excess produced by over-manufacturing a certain product. For example, a factory orders material to produce 300 toys. However, it turns out that the material they ordered is actually enough to produce 400 toys, and they end up producing 400 instead of 300. This would usually be termed overrun.
Overstock on the other hand is more often used when an importer or vendor doesn’t succeed at selling a certain product by the end of the month or the season. For example, you orders 30 mountain bikes from a model that seems to be all the rage right now. Unfortunately, only 15 of these bikes sell, and the trend seems to have ended – buyers have moved onto some new model. This is often the situation where people use the term “overstock”.
Now, in practical terms, we recommend you do not worry too much about which terms mean what. The truth is that closeout companies tend to deal with all of these situations. You do not have to identify the exact industry term that applies to your specific situations before you contact a closeout company.
It would be in your best interest to contact a closeout company and let them know your particular situation and inventory. They will be much better at explaining how things work and how much money you can expect to recover.
Closeout Articles
