Promotion Planning Without End-of-Season Overstock

Retailers love promotional buys. Wholesalers love the volume bump. Neither party enjoys the pallets left in March when the promotion window closed in January.

Tie PO quantity to committed retail placement

Before increasing a buy for a promotion, collect written or email confirmation of:

• Number of stores or outlets participating
• Expected units per store for the promotion period
• Whether unsold units can return to you or must be discounted in-store

A promotion without placement commitment is a speculation buy, not a demand plan.

Build a promotion add-on, not a permanent uplift

Increase the PO only for the promotion window quantity. Do not permanently raise safety stock or reorder points unless the promotion proves repeatable demand at the new velocity. Document the revert date in your purchasing calendar.

Separate promotional inventory in the warehouse

Physically segregate promotional stock — a designated bay or labelled pallets. When the window closes, remaining units are disposition candidates, not blended back into “normal” stock where they hide for months.

Post-promotion review within 14 days

Schedule a brief review:

• Units sold vs. forecast
• Retailer sell-through reports if available
• Remaining quantity and disposition plan

Feed results into next year’s promotion buy. One retailer who took 40% more than forecast should not automatically justify 40% more for all retailers next season.

When to decline a promotional buy

Decline or reduce scope when:

• Supplier minimum order exceeds confirmed retail placement by more than 15%
• The SKU is already above 12 weeks of supply before the promotion
• Lead time means promotional stock arrives after the retail window opens

Saying no to a promotion protects margin on the A-class lines that fund your operation year-round.

Promotion planning is demand planning with a deadline. Treat the deadline as seriously as a container cutoff date.