Why Consider Hunter Automotive Parts?
Because there's is no profit in stagnant stock
When deciding whether to store a pallet containing £1,000 worth of unsold product, it is crucial to examine both the cost-based and revenue-based perspectives. On average, storage in a standard UK warehouse costs between £15 and £20 per pallet per month, depending on location, equipment, and any special requirements—the total typically covering rent, utilities, labour, and insurance. This means that, purely on storage fees, a pallet left unsold would incur a cost of £240 per year at the higher end (£20 per month).
Focusing on the erosion of value, we can calculate exactly how long it would take for storage costs to fully consume the value of the goods. At £20 per month, the entire value of a £1,000 pallet would be wiped out after 50 months of storage (£1,000 ÷ £20 = 50 months). In other words, if the stock does not turn in just over four years, the cumulative storage expense would match the worth of the goods, leaving no margin for profit—or even cost recovery. If the monthly charge were £15, the breakeven point stretches to about 67 months (£1,000 ÷ £15 ≈ 66.7 months), but this is still a significant risk for stagnant inventory.
From the revenue-based perspective, the difference between stagnant and active stock is striking. If the £1,000 pallet turns over 3 times per year, generating a 30% margin on each cycle, it would yield £900 in gross profit over the year (£1,000 × 30% = £300 per turn; £300 × 3 turns = £900). With annual storage costs of £180–£240, a turning pallet more than covers its storage costs and delivers a strong return on investment.
In contrast, stagnant stock produces no revenue, allowing storage costs to steadily erode its value until, over enough time, the expenses equal or even exceed the goods’ worth. This contrast highlights the critical importance of maintaining high inventory turnover to maximise profitability and avoid the financial pitfalls of long-term storage.
That’s precisely why Hunter Automotive Parts exist. We understand that the key to profitability is keeping stock moving—when inventory sits idle, it ties up capital and steadily loses value to mounting storage fees. Our expertise lies in helping businesses clear stagnant stock while it still has market value to someone else, ensuring products are transformed from liabilities back into assets.
What’s more, we work closely with Automotive Suppliers to help them get their brands onto customer shelves by handling the hassle of removing existing stock. Our approach makes the process of stock swapping seamless and efficient, so Automotive Suppliers aren’t left with unwanted products that aren’t their own. This gives the customer a clean, fresh slate to showcase the new brand, maximising shelf impact and helping suppliers focus on building relationships and growing sales without the headache of surplus inventory management.
