At the end of your season, what is your strategy for liquidation of any excess inventory?

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1 Last Week s Question Of The Week: At the end of your season, what is your strategy for liquidation of any excess inventory? Answers: Immediately following our 12 Days of Christmas Sale, we offer our members an End of the Year Sale to help us blowout seasonal merchandise that won't carry over into the following season. This allows us to free up additional OTB dollars, which will be spent on introducing new product for the coming season. We also work with a liquidator near the season's end to remove any old demo clubs we may still have on hand. We liquidate clothing every 2 seasons and clubs every 3rd season.we use a liquidator from out of state. For apparel, we set the pro shop in sale mode and use January as a clearance month. We typically sell at 50% off and setup tables and displays by size. For demo/used clubs we either use Golf Stix and/or sell them to a golf professional friend of mine at public facility that has a great market for used clubs. We have a Holiday Clearance Sale for apparel and accessories and we use a local liquidator for some equipment liquidation when appropriate We have a deep discount sale to turn product into cash from the end of the golf season through the Holidays. I have an ending inventory number / goal and will work towards that number either via golf shop sales or contacting a company to liquidate (golf clubs / balls / shoes that are obsolete or discontinued can create challenges but will work with local sales rep throughout the year to minimize that inventory)

2 I generally like to have a member sale late around thanksgiving. I may hold any basic clothing and items that carry over until the following year that I can and then I have a wholesaler come and but the rest. Proper buying leads to minimal liquidation. On average each year we have approximately $3,000 of inventory we budget to write off. Our first attempt with non logoed merchandise is ebay. After that we have a staff sale and anything remaining is put out on the last day we are open for staff to have for free. We almost always choose apparel and it is anything that has not sold in the past two seasons. we return to original manufacturer as much as possible. Mostly hard goods. demos not sold or returned go to pga trade in. mens and womens bottoms back to vendor. We first start discounting 45-days out from closing to the membership and finally get down to 50% off the last week. We then sell to our employees at 60-75% off after we close. We then typically have about 10-15k in apparel and end up writing it off... We run an end of year SALE and anything that does not sell is put into clear tubs. We run the SALE with the old again during Labor Day and Memorial Day SALES... Anything left is liquidated. I USE A LOCAL LIQUIDATION SERVICE FOR CLUBS (CHRIS CLARK) AND ALSO TRY TO SELL CLUBS ON EBAY MYSELF. IT SEEMS MORE AND MORE EACH YEAR, IF YOU DO SOME NEGOTIATING WITH REPS, YOU CAN RETURN UNSOLD/UNUSED EQUIPMENT BACK TO MANUFACTURE. CLOTHING: I TRY AND LIQUIDATE OLD ITEMS, BUT CAN ONLY GET $5-$6 PER ITEM, OUCH I discount everything down to get a little above wholesale. Honestly find best way is to reach out to non-members such as outings we host and see if they have any needs. I find that this

3 does not saturate my market, as most members will only buy as much as they need. I typically have a blowout sale around the holidays, then keep some merchandise for sale racks going into next season. We have a few local guys that buy new and used clubs. Try to sell off apparel, but haven't found a good resolution since I can't unload apparel with a logo. Liquidation sales to members & club staff. Internet. We have a serious after-christmas sale that lasts until mid January. After that we put away those items that will not fit in with new spring arrivals. We then have a sidewalk sale in the spring, once we open up with those holiday clothing items. Those items that do not sell go into a box which we will bring back out for an employee sale in November. We have over 2oo employees and we usually get about 25 cents on the dollar at cost, but we get something for that inventory and our employees get great stuff for a great price, win/win. Donate to Charity. Move inventory to Tennis/Fitness Center to see more traffic, all merchandise reduced to 50% off, large employee sale in spring For the last month of my season (November) all spring and summer apparel goes to 50% off and fall goes to 40% off. After we close for the season, I send some of the non logoed pieces to a local, higher end, consignment store. The bulk of the inventory is sold to a retailer in Florida for about 10% of retail. If we have money left in the budget, we allow employees to have some of the old inventory. We code it to uniforms and allow the staff to where the shirts during certain events. We have also donated some of the goods to Bluffton Self Help.

4 I use vendor returns when available for equipment. I never discount those to members. I also use ebay frequently for bigger ticket items that are discontinued. For apparel we hold a white table cloth sale to blow out old items. We also sort through pieces that can fit in line with next year's collections. We put them in tubs until we receive the new lines. First Tee, Vietnam Veterans Association, Make an offer sale We save some of the excess inventory for charity requests the following season and for special sales promotions. We also use a company called Ship Stix to liquidate used items, shop worn items or items we need to sell below cost. We will either carry over product or use a liquidator like Golfstix We have relationships that provide RTV percentages as part of our buy. We work with regional facilities to liquidate non-logo wear. We work with facilities outside of a 500 mile radius to liquidate logo wear. We use logo wear for uniforms is sufficient inventory remains. We have sales: % off and Buy $100 or more and pick (sort of a grab bag) We write off items we have held for the past 3-5 years. Aggressive Holiday clearance sales helps us unload other items. Looking for a good program here. Ladies apparel is liquidated through golfstix. Men's apparel is almost always eventually rolled through in sales, stags and Monday events. Member clearance sale at season end. Anything remaining we put in an employee sale at the holidays.

5 We have two "Events" each year. One on our July Long weekend (sidewalk sale) and one prior to Christmas (Wine & Cheese party). We begin discounting merchandise in January and slowly increasing the discount percentage. We then do a Employee Friends and Family sale in February/early March for short sleeve golf shirts and hats at 70% off. We follow this with an outerwear sale in late March at 70% off for Employee Friends and Family. This has worked with great success. Give the the employees at the club a few days in late February or early March to come into the golf shop and buy any merchandise at cost. We make sure all employees get a text or e mail on the sales dates. After that we sell to liquidators which is usually at half or less than the wholesale cost.

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