Should a Buyer Pay For Outdated/Unsalable Stock? In short NO but there is always a BUT….
It is important when signing an agreement to purchase a business that you know what you are getting. In most cases businesses will sell at a price +SAV (Stock at Value). This is not what the product will sell for but rather the cost of the product. When buying a supermarket it is important to set the parameters for the stocktake process to ensure the stock you are buying is still in a saleable condition. That is in date and also properly packaged. The average benchmark for use by codes from date of stocktake is 30 days for grocery and frozen items and 7 days for perishable items such as dairy and bread/bakery products. This is either determined by the company performing the stocktake or an agreement between the two parties at time of stocktake. If you sign an agreement that is a WIWO (Walk in Walk out) price then you run the risk of buying stock that is unsaleable This is a risk for the purchaser as the seller has no responsibility for ensuring sellable items and can reduce stock levels which ultimately affect the trading ability of the business. For added piece of mind it best if when buying a business that you buy it with + SAV David Zampech Supermarket Specialist