Your Unsold Inventory Is Costing You More Than You Think

Most ecommerce brands head into Q4 carrying too much inventory and not enough cash, and those two problems are directly connected. In this episode, Richard Gaffin sits down with Anmar Anmar Abdul Jawad, Director of Profit Engineering at CTC, to walk through the Cashmas in July framework, a four-step process for liquidating slow-moving inventory in Q3 so your brand has the capital and focus it needs to win in Q4.What we cover:Why brands fall into either an execution gap or a strategy gap with inventoryThe real cost of holding inventory, including storage fees and opportunity cost on cashHow cash constraints force brands to pull back spend and miss cohort valueThe four-step liquidation process: SKU identification, financial modeling, operating plan, and asset executionWhy sequencing discounts correctly depends on your brand's historical discount behaviorHow CTC's portfolio-wide data gives brands an edge on ad angles and creative strategyWhy adding a third party for liquidation adds capacity instead of displacing your evergreen businessKey insight: Brands that are cash-constrained in Q3 have to reduce new customer acquisition spend precisely when efficient CAC opportunities are available. Liquidating inventory early funds the cohorts that drive your Q4 contribution margin.Ready to run Cashmas in July for your brand? https://commonthreadco.com/pages/cashmas-in-julyShow Notes:Go to http://outersignal.com/thread to get 50% off your first two monthsExplore the Prophit Engine: https://commonthreadco.com/pages/prophit-engineThe Ecommerce Playbook mailbag is open — email us at [email protected] to ask us any questions you might have