When should we “CLIP” a dead branch?

We are coming up on another store inventory, and this question is becoming more popular again. In the store operation process, you have an item that has been damaged and is still in your store inventory. What should you do?

Option A- Contact the Vendor and get the parts replaced if under Warranty status. If it does not qualify as a Warranty item go to Option B.
Option B- Make a list of parts needed to restore the product back to it’s state as built by the manufacturer. Order those parts by way of the Small Parts Program, and be prepared to absorb the invoice amount as a “cost of doing business”.
Option C- We don’t like this option, but still have to use it sometimes. If the cost of the restorative parts are far beyond the profit margin of the product, or the parts are not available, we may need to 100% discount the item and destroy it. For some items, we may be able to use it in training classes. Before destroying any bicycles or new/fairly straight wheels, please email your Bike Trainers and ask if they can use it.

I have heard rumors of sales to employees, for those items that are returned "used" or functional but clearly not new. It could be a fair resolution for the store and an employee who is looking for that item to sell it at a reasonable price. I cannot suggest that as an option, as it opens the door to fraud and possible loss prevention issues.

It can be very difficult to destroy an item for what we see as a minor issue. The alternative is to use a never-ending downward spiral of payroll hours on a product that won’t ever be sold for full price. Sometimes we just have to clip a bad branch, and get back to business. Use your best judgment, work with your Bike Dept Head, Trainers and District Managers.