---
title: Doudlah Farms — Aggressive Coupon Policy for Inventory Liquidation
type: article
created: '2026-04-05'
updated: '2026-04-05'
source_docs:
- raw/2025-11-12-weekly-call-w-gilbert-101102516.md
tags:
- amazon
- fba
- inventory
- coupons
- doodla
- liquidation
- margins
layer: 2
client_source: null
industry_context: null
transferable: true
---

# Doudlah Farms — Aggressive Coupon Policy for Inventory Liquidation

## Overview

Following a crisis with Amazon AWD (Amazon Warehousing & Distribution) that resulted in expired and at-risk stock, Doudlah Farms adopted an aggressive tiered coupon policy to liquidate excess FBA inventory before it spoils. The policy was established during the [[wiki/meetings/2025-11-12-weekly-call-gilbert-doodla.md|2025-11-12 weekly call with Gilbert]] and applies immediately to all high-inventory SKUs.

The guiding principle: **selling at a 20–25% discount is always preferable to disposing of expired product at a total loss.**

---

## The Problem

Amazon AWD proved unreliable — warehouses filled up, replenishment to FBA stalled, and inventory sat long enough to approach or exceed expiration dates. Affected SKUs included:

- **1 lb Pinto Beans** — ~1,000 units at AWD, unlikely to sell through in time
- **1 lb Black Beans** — flagged by AWD as expiring within 2 months; Amazon will not ship product expiring within 60 days
- **25 lb Kidney Beans** — 26 units flagged for disposal
- **25 lb Great Northern Beans** — 14 months of inventory on hand
- **25 lb Yellow Popcorn** — coupon had been turned off despite 14+ months of stock

The root cause was over-stocking AWD during the initial launch phase, compounded by AWD's failure to reliably replenish FBA.

---

## The Policy

| Inventory Age | Coupon Discount |
|---|---|
| < 6 months | No coupon required (or minimal launch/promo coupon only) |
| 6–12 months | **20% off** |
| > 12 months | **25% off** |

### Rules

- **All SKUs with > 6 months of inventory must carry an active coupon.** No exceptions unless inventory drops below the threshold.
- Coupons should be reviewed and adjusted at least every two weeks alongside regular account optimization.
- New products may carry a smaller introductory coupon (e.g., 10%) independent of this policy.
- Once inventory falls below 6 months, coupons can be removed or reduced.

---

## Affected SKUs (as of 2025-11-12)

| SKU | Inventory Level | Action |
|---|---|---|
| 1 lb Pinto Beans | High (AWD) | Increase coupon to 20–25% |
| 25 lb Great Northern Beans | ~14 months | Set to 25% |
| 25 lb Yellow Popcorn | ~14 months | Re-enable coupon at 25% |
| Whole Wheat Flour | > 6 months | Increase from 10% to 20% |
| Old World White Popcorn | ~9 months | Set to 20% |

---

## Inventory Management Going Forward

In parallel with the coupon policy, the team agreed to the following structural changes:

- **Ship all new inventory directly to FBA** — AWD is suspended until further notice due to reliability issues.
- **Cap inventory at 3–4 months** for standard products; never exceed 6 months even if AWD is re-enabled in the future.
- **Carly's next Doodla order** must be routed to FBA, not AWD. Mark to confirm with Carly directly.

See also: [[wiki/knowledge/amazon-strategy/awd-vs-fba-reliability.md]] for broader context on the AWD decision.

---

## Financial Context

- November sales trending at **$131k** (vs. $116k in October) — strong underlying demand makes liquidation via coupons viable.
- Current account margin is **31–37%**; target is **40%**. Aggressive couponing will compress margins short-term, but disposing of expired stock is a total loss. The priority is clearing aged inventory first, then optimizing margin.

---

## Action Items

- [ ] Increase coupon on 1 lb Pinto Beans to 20–25% (@Gilbert)
- [ ] Set 25 lb Great Northern Beans coupon to 25% (@Gilbert)
- [ ] Re-enable and set 25 lb Yellow Popcorn coupon to 25% (@Gilbert)
- [ ] Increase Whole Wheat Flour coupon from 10% to 20% (@Gilbert)
- [ ] Audit all SKUs — any > 6 months must have an active coupon at the correct tier (@Gilbert)
- [ ] Confirm Carly's upcoming order ships to FBA, not AWD (@Mark)

---

## Related

- [[wiki/clients/doodla/_index.md]]
- [[wiki/meetings/2025-11-12-weekly-call-gilbert-doodla.md]]
- [[wiki/knowledge/amazon-strategy/old-world-popcorn-organic-targeting.md]]
- [[wiki/knowledge/amazon-strategy/awd-vs-fba-reliability.md]]