How do I explain my tire shop’s slow-moving winter tire stock to a buyer?
Show the stock list openly, sorted by size and age, and say plainly why each group did not move. Buyers trust a seller who names the problem first. Offer a plan, such as a clearance push, a return to suppliers or a separate line in the sale terms.
Begin with a clean count. A buyer will count the tires anyway, so do it first and sort the list by size, brand and how long each lot has sat. Mark which lots are current sizes that simply missed a season and which are sizes for vehicles that are now rare. Those two groups tell very different stories.
Then explain the cause honestly. Maybe you over-ordered after a cold snap, or a supplier changed a line. Maybe a rival cut prices early. Whatever the reason, say it, and show what you changed so it does not repeat, such as smaller early orders or a firmer cut-off date.
Offer options rather than hoping it goes unnoticed. You can clear what you can before closing, ask whether suppliers will take some back, or let the buyer decide whether to take the slow lots at all, with the terms set out in the offer. Ask your accountant how the stock should show on the books, since a stale line can quietly overstate what you hold. Keep the tone factual. A buyer who sees a tidy list, a plain reason and a workable plan is far more likely to treat the stock as a manageable item than as a reason to doubt the rest of your books.
Key takeaways
- Count and sort the slow stock yourself before the buyer asks.
- Separate missed-season sizes from sizes that are no longer in demand.
- Put the plan for the slow lots in writing alongside the offer.
Related reading
15 pages on the same subject, grouped by topic.
Financing
Selling
- Expert answerHow do I explain a car wash’s slow winter months to a buyer honestly?
- Expert answerShould I clear out slow-moving stock before selling my retail store?
- Expert answerHow do I explain my golf course’s pro shop sales to a buyer?
- Expert answerHow do I explain my ski shop’s wax and tune bench to buyers?
Buying
- Expert answerHow do I judge the slow-moving stock in an industrial supply distributor’s warehouse?
- Expert answerCan I extend an ice cream shop’s season by adding a winter menu?
- Expert answerHow do I check a ski shop’s inventory for last season’s unsold stock?
- Expert answerWhat should I look at in a sign shop’s stock of aluminum, acrylic and LED modules?
- Expert answerWhat should I ask about a trophy shop’s blank supplies and stock?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.