How can I tell if a yarn shop’s inventory has too many discontinued dye lots?

Yarn is sold by project, and a knitter needs enough skeins from one dye lot. A shelf of stray skeins is hard to sell, and discontinued colours cannot be restocked. Ask the seller how the shop labels lot numbers and how it handles leftovers. Sorted, tagged bins are a good sign. Unsorted baskets suggest the problem has been growing.

Count the amount of each discontinued line and ask when it last sold. Compare that with the stock listing, which should show receiving dates. If there is no listing, ask how the owner tracks what to reorder. Check the clearance corner, because heavy markdown use points to long-term overstock.

Look at how the stock is carried in the books. If the odd lots are still carried at full original cost, the books may flatter them, and your accountant can test that. Ask whether the shop can return discontinued lines to the supplier or sell them online. Finally, ask what the owner would do with the odd stock before closing, such as a sale or a lot clearance. Photographs of each bin, taken during the visit, help you compare later.

Key takeaways

• Sort shelves by lot and look for stray skeins of discontinued colours.
• Compare stock records with last-sold dates.
• Check the clearance corner for signs of long-term overstock.
• Ask your accountant how odd lots are carried in the books.