More Retailers are Considering Selling Off-Price Products…You Should Too!
by Carrie Hinkel on March 11th, 2008
For years, name-brand retailers have used off-price goods as special promotional items to attract customers to their store, with the hopes that they’ll end up purchasing additional items from their full-price lines. Now, more and more retailers are using off-price retailing on a regular basis, and their customers have come to depend on the variety and the bargains.
Off-price products are brand-name merchandise that sells significantly lower than the suggested retail price. The difference between off-price merchandise and discount merchandise is that off-price products are purchased from manufacturers and wholesalers at prices way below wholesale. Discounted products, on the other hand, are purchased at full wholesale price but are marked down lower by the retailer. While discounted products can be a regular and predictable source of inventory, off-price products are not. One month you might happen upon a truckload of Adidas workout gear, and the next it might be a pallet of Oakley sunglasses.
Why customers love off-price products
The price - Everybody loves a bargain, especially when you’re getting high-quality, name-brand merchandise. Stores like T.J. Maxx, Marshalls and Ross have built bargain empires around bringing customers the clothing brands they love at a discount - sometimes up to 75% off the suggested retail price!
The hunt - For many shoppers, the thrill of sifting through racks of clothes or website pages of electronics to find that one gem is second to none. You just can’t help but feel special when you come across that Versace sweater you were drooling at in Macy’s last week - in an off-price store for 60% less!
Why retailers love off-price products
Brings in new customers - If you advertise your sensational deals and brands, you’re bound to get new customers in your store or on your website. Savvy shoppers are always looking for that next deal - and if you have it, then they will come (or at least the theory goes - it inevitably will depend upon the right mix of marketing and product pricing).
Keeps customers coming back - What’s great about being an off-price retailer is that your merchandise is always changing - and that gives shoppers a reason to check back in often. While the merchandise in stores like the Gap or J. Crew may not change much from week to week, an off-price retailer may have received a whole new shipment in - with a trove of bargain treasures just waiting to be found!
Increases sales of full-priced merchandise - There’s no doubt that getting customers through the door of your store or on your website is the hard part. Once they’re there, you’ll find that many will take the time to browse your store’s other offerings - especially if your in-store or online displays are eye catching.
While selling off-price products may not be as easy as selling regular-price merchandise, it does attract more customers, more often. And, for some retailers, that’s enough motivation to put in the extra work of finding those off-price deals. You might just find that finding those truckload or pallet deals is as much fun as it is rewarding!