Oh that’s awesome! You just saw an item you needed on clearance in a store. In another aisle, you see a sale sign up on your favorite laundry detergent that makes it $2 cheaper than its original price this week. While clearance and sale products both help you to purchase a product for a reduced cost compared to its original pricing, there are some major differences between the two.
What Is Clearance?
Clearance is when a store is attempting to reduce or completely wipe out their inventory of a specific product to make way for a new batch of the same product or to completely switch it out with a replacement product. If you see a clearance section while shopping in a store, more than likely you won’t see those exact items in the store again or a new batch of them will be coming in soon. Clearance products are usually food products that are about to become outdated or seasonal decor and supplies that are no longer applicable to the upcoming months and holidays
What Is A Sale?
A sale is a promotion whose key function is to increase customer traffic into a store that hopefully turns into more sales being made. Not everyone is comfortable with purchasing a product at full price. If merchandise is on sale sometimes, consumers will feel the desire to buy it during such a promotion so they can enjoy it at a cheaper price.
When To Place A Product On Sale
Think of a sale like when a betting platform betFIRST matches your first-time deposit to play their casino games. You are getting double the value because of the deposit match. In a sale, if something is priced for half off during that week, you can get two of those products for the price of one. You should place a product on sale if it hasn’t been moving off the shelves for the past few months. If it’s a more popular product, you can enhance the potential of even more sales if you host a sales promotion for it.
When To Place A Product On Clearance
There are many reasons that it would behoove you to clearance an item in your store. If a product hasn’t been purchased for the past few months, placing it on clearance to clear out the inventory of that item would be your best bet. If you carry food products with an expiration date that is about a month and half out or shorter, that is another good reason to get them clearance for quick sale.
Perhaps you see packages of something open on the shelf probably from a thief attempting to steal something from your store. Do what Walmart does and wrap up the product and sell what’s left of it if it can be doable. For example, if it’s a 5-pack of underwear where there’s only 4 in the package now, you can dock it down by 20% since a fifth of the package is no longer present.
Say that you have Halloween decor, candy, and costumes in your store from late August until the end of October. Seasonal items like these can be slowly docked down in price for quick sale because some people like to store things for the coming year.
Start with a 50% off price cut for seasonal items. About one to two weeks later, you can have the seasonal products become 70% off. When it’s been a month since the holiday happened and if there is still inventory for that season left, dock down the items to 90% off the original price so that you can make way for new seasonal items.