Marking down stock is a real model for attracting new clients to the store, reach new sales targets during slow sales months and reward loyal consumers of the warehouse. Notably, so you need to have a roadmap on how to ensure that you make profits on the discounted margins on the particular items. The clearance sale is usually on high demand because of its lower price.
Factors to consider
- The current breakeven point, markup and profit margin.
- What discount will still give me an advantage?
- Will the marketing plan in place attract new customers?
- Check other retailers and what price they are currently offering.
- Are there any other methods of promoting sales without price reduction?
- What is the time frame of the sale?
- Ensure the month where there is a sale is a month where you have the lowest sales throughout the year.
Item to be put for a clearance sale
You should look into inventory-control and get to see which item has the slowest movement from inventory rather which issues occupies the most space in stock. Your observation should be based on current period/year sales so that you may see which product has the slowest movement. Therefore, you should ask to see if it’s a case of obsolesce or a matter of pricing so that you can make your conclusion before putting the item on a sale.
Every item has its selling season; therefore, it is fundamental to check the season and notice the trading trends during the particular season. Some strategies include; marking down winter items at almost the end of winter, this will attract customers and increase the volume of sales.It is advisable to put a deal at a time which most consumers will find relevant at that point so as to push volumes and increase sales. Purchasing leaves your store with enough room for displaying other items.
Give a huge discount first
Target to sell the discounted items first so that you manage losses. Give huge discounts to attract consumers and maximize on the sale of the discounted items. Ideally the slower the object movement, the deeper the discount offered. A good manufacturer may assist in the financial bargain of the particular item.
Use all kinds of media available to sensitize the general population of the sale items. Marketing will increase the interested consumers flocking to the store. If not all the articles in the store are on sale, capitalize on the ‘sale sign’ on the particular areas where the items are placed to make it easier for consumers to see.