A marketable surplus can be the result of an accumulation of unsold goods or an instance of overproduction. When extra items go unwanted by the primary market, many small businesses find a way to market them to a new segment. Understanding how to market your surplus goods can turn a certain loss into found profit.

Surplus vs Marketable Surplus

A marketable surplus is not just a bunch of stuff that didn't sell. It is a collection of merchandise that has lasting value and that can be sold or used in a way that was not originally intended. Sometimes the merchandise that is left over at the end of the retail calendar year is essentially worthless. It is often dated, no longer desirable and unwanted by the consumer. The more common and low cost the merchandise is, the more likely it will be considered a general surplus and a net loss. A marketable surplus has value to someone, somewhere. It may be dated but high quality can help maintain its relevancy. Knowing which products are worth trying to sell and which are better off donating depends largely on your knowledge of the particular industry and of the market itself.

Secondary Market

Necessity is the mother of invention and there are few things more necessary than finding a way to get rid of your surplus stock. In doing so, you may find new markets for your small business brand that last well beyond the sale of your surplus goods. A marketable surplus is often one that is of use to a market other than your primary target segment. To find that market, you will need to determine whether a previously unexplored secondary market may be the answer. For example, your small business manufactures candles and you have been left with a few thousand of the unscented version. Although they were intended for household use, perhaps local churches would be interested in them at a low rate. Your customers are still local but nontraditional and now your secondary market exists.

Wholesale Opportunities

Instead of trying to move your surplus goods within the primary market through repackaging or discounting them, you may do well to enter the wholesale market. If you are left with a large quantity of items, the traditional retail methods of selling them off can take more time that you have to waste. Extra merchandise takes up valuable retail or storage space that many small businesses cannot spare. Finding a vendor who is willing to take on the extra merchandise at a fraction of the retail sale price can help you to recoup some of the money you have invested in the product while getting it out of the way. If the deal works out for both parties, a relationship can be formed and your future marketable surpluses can lead to an extension of the business into the wholesale market.


Although there is often great potential in marketing your surplus goods, there can also be problems. Having a surplus is almost never the ideal situation. You can be left with lots of product that you cannot move. You can also be left with a large chunk of your small business revenue tied up in product that sits for an extended period before being sold at or near cost. Additional marketing expenses tend to be involved as well. Sometimes the only way to dig yourself out of a costly hole is to spend a bit more even though you don't want to.

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