Turning Dead Stock into Dollars: How to Use Annual Returns to Your Advantage
For any small engine repair shop, shelf space is money. Every part that sits collecting dust is cash you can't use. This "dead stock"—parts from a misdiagnosis, a canceled repair, or an optimistic order—ties up capital.
Annual parts exchange programs, like the 2025 Rehlko Annual Parts Exchange from Medart, are a powerful tool to solve this problem. But to get the most value, you have to see the program for what it is: not a cash refund, but a strategic inventory swap.
Here’s how to use this program to your advantage and turn those dusty boxes into parts you'll actually sell.
The "Catch" is the Opportunity
The most important rule in this program is the key to your strategy: "A $1 for $1 offsetting order for parts must accompany your return request".
If you don't submit a new order with your return, it "will not be processed". This isn't a penalty; it's an opportunity. The program forces you to immediately convert your worst-performing assets (dead stock) into your best-performing assets (high-demand inventory).
Your goal isn't just to get rid of old parts. Your goal is to acquire new, fast-moving stock without spending new cash.
A 4-Step Strategy for Swapping Shelves
Use the annual return as a critical business checkpoint. Here's a step-by-step plan.
Step 1: Identify Your "Dust Collectors"
Go through your inventory and pull everything you haven't touched in a year.
Check the Cap: Your total return is limited. For example, the Rehlko return "may not exceed 5% of your 2025 Rehlko Parts Purchases from Medart". If you're unsure of your limit, you can contact the distributor.
Check Eligibility: Make sure the parts are still in the "current price list". Obsolete parts are typically not returnable.
Step 2: Know the Rules (What NOT to Send)
Distributors are strict because they have to resell these parts. Your return must be "new, in the original current factory carton and in resalable condition".
Read the "Items not returnable" list carefully. For the Rehlko program, this includes:
Common hardware like washers, nuts, and bolts.
Items valued at less than $1.00.
Gasket sets, opened kits, or parts removed from engines.
Any part that is rusty, greasy, or used.
Sending in items from this list is a waste of your money. They will be "scrapped with no credit issued".
Step 3: Plan Your New, Profitable Inventory
This is the most important step. Calculate the total dollar value of the eligible parts you're returning. That amount is your "store credit" for the offsetting order.
Now, build your new order. What do you know you will sell?
Look at your sales history. What are your top 20 fast-moving parts?
Stock up on seasonal essentials (e.g., tune-up kits for spring, chainsaw parts for fall).
Remember, the new order must be for qualifying parts. For instance, the Rehlko offset must be for other Rehlko parts and cannot be used for oil or promotional items.
This new order is your profit. You're funding it entirely with parts that were previously worthless to you.
Step 4: Execute the Return Flawlessly
Follow the process perfectly to avoid penalties.
Get Approval First: Submit your "return request list for approval". Do not ship your parts yet.
Wait for the RMA: Once approved, you will be sent RMA (Return Merchandise Authorization) paperwork.
Ship with Paperwork: Your return must include the RMA paperwork, or it "will not be processed".
Hit the Deadline: The deadline is firm. The Rehlko return must be at their facility "NO LATER THAN August 30, 2025".
The Bottom Line: Costs vs. Benefits
Be aware of the costs involved. You are responsible for the "return freight". If you're returning heavy items like short blocks , there may be an inspection fee (e.g., a "$25.00 factory inspection fee" ).
Most importantly, failure to follow the rules can be costly, potentially resulting in a "50% restock charge on the total return".
But these costs are minimal compared to the benefit. You are taking 100% dead, non-performing assets and converting them into high-demand inventory that will generate new sales and profits. An annual return program isn't a chore; it's one of the best inventory management tools you have.
Here is a list of top sellers (click) as of the date of this article.